Online travel agency Booking Holdings (NASDAQ: BKNG) will be reporting results this Tuesday after market close. Here’s what investors should know.
Booking met analysts’ revenue expectations last quarter, reporting revenues of $5.53 billion, up 16.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and solid growth in its bookings. It reported 338 million nights booked, up 6% year on year.
Is Booking a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Booking’s revenue to grow 5.7% year on year, slowing from the 16% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Booking has a history of exceeding Wall Street’s expectations.
Looking at Booking’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 2.2%, and Reddit reported revenues up 61.1%, topping estimates by 9.9%. Alphabet traded down 7.1% following the results while Reddit was also down 21.8%.
Read our full analysis of Alphabet’s results here and Reddit’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Booking is up 6.5% during the same time and is heading into earnings with an average analyst price target of $224.42 (compared to the current share price of $192.98).
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