What To Expect From Booking’s (BKNG) Q1 Earnings

Anthony Lee /
2023/05/03 3:28 am EDT

Online travel agency Booking Holdings (NASDAQ:BKNG) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter Booking reported revenues of $4.05 billion, up 35.8% year on year, beating analyst revenue expectations by 3.83%. It was an impressive quarter for the company, with growing number of users and exceptional revenue growth. The company reported 211 million nights booked, up 39.7% 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 39.2% year on year to $3.75 billion, slowing down from the 136% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $10.79 per share.

Booking Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Booking's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Roku reported revenues up 0.99% year on year, exceeding estimates by 4.72%. Shutterstock traded flat on the results, Roku was up 6.18%. Read our full analysis of Shutterstock's results here and Roku's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 6.67% over the last month. Booking is up 2.87% during the same time, and is heading into the earnings with analyst price target of $2,802.8, compared to share price of $2,714.

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.