Booking (BKNG) Q4 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/02/23 6:59 am EST

Online travel agency Booking Holdings (NASDAQ:BKNG) will be reporting results today after the bell. Here's what you need to know.

Last quarter Booking reported revenues of $4.67 billion, up 77.1% year on year, beating analyst revenue expectations by 8.98%. It was an incredible quarter for the company, with an exceptional revenue growth and growing number of users. The company reported 183 million nights booked, up 44% year on year.

Is Booking buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Booking's revenue to grow 130% year on year to $2.85 billion, improving on the 62.9% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $13.52 per share.

Booking Total Revenue

The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.1%.

Looking at Booking's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Expedia delivered top-line growth of 147% year on year, missing analyst estimates by -0.82% and Airbnb reported revenues up 78% year on year, exceeding estimates by 5%. Expedia traded down 2.78% on the results, Airbnb was up 4.19%. Read our full analysis of Expedia's results here and Airbnb's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 2.96% over the last month. Booking is up 8.41% during the same time, and is heading into the earnings with analyst price target of $2,732.2, compared to share price of $2,525.01.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.