Booking Earnings: What To Look For From BKNG

Radek Strnad /
2022/05/03 7:06 am EDT
Add to Watchlist

Online travel agency Booking Holdings (NASDAQ:BKNG) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Booking reported revenues of $2.98 billion, up 140% year on year, beating analyst revenue expectations by 4.49%. While the company traded flat on the results, it was still a very strong quarter, with an exceptional revenue growth and growing number of users. The company reported 151 million nights booked, up 98.6% 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 121% year on year to $2.52 billion, improving on the 50.1% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.18 per share.

Booking Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward and three upward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.42%.

Looking at Booking's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Expedia delivered top-line growth of 80.4% year on year, missing analyst estimates by 0.06% and Snap reported revenues up 38% year on year, missing analyst estimates by 0.57%. Snap was up 8.2%, while Expedia was up 4.7% on the results. Read our full analysis of Expedia's results here and Snap's results here.

Tech stocks have been facing declining investor sentiment in 2022 and consumer internet stocks have not been spared, with share price down on average 19.6% over the last month. Booking is down 7.23% during the same time, and is heading into the earnings with analyst price target of $2,682.2, compared to share price of $2,203.12.

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.