Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Booking Stock Dips on Mixed Results, Guidance Seen as 'Tough'

Published 08/04/2022, 06:38 PM
Updated 08/04/2022, 06:38 PM

By Senad Karaahmetovic

Shares of Booking Holdings (NASDAQ:BKNG) are down about 3% in premarket trading Thursday after the company reported Q2 results and offered forward-looking commentary during the earnings call.

The online travel company reported Q2 adjusted EPS of $19.08, compared to a loss per share of $2.55 in the year-ago period, while analysts were expecting EPS of $17.52. Revenue came in at $4.29 billion, up 99% YoY, though below the consensus projection of $4.33 billion.

BKNG reported an adjusted EBITDA of $1.09 billion, up from $48 million in the year-ago quarter, and topping the analyst consensus of $963 million. Gross bookings stood at $34.55 billion in the three-month period, up 57% YoY, and above the expected $32.76 billion. Rooms and nights sold totaled 246 million, up 57% YoY, beating the estimates of 239.7 million.

The company’s CEO Glenn D. Fogel says he expects record revenue in the third quarter.

"Looking forward, we expect record Q3 revenue and are very busy working with our customers and partners to help enable an extremely busy summer travel season," said Fogel.

During the earnings call, Booking said that its July 3-year revenue growth slowed to 4%, compared to the 16% in Q2. Shares of Booking erased after-hours gains after these comments.

An analyst from RBC said BKNG delivered “good results” but the offered guidance and commentary were “tough”.

“While acknowledging the disappointing July rn slowdown, our thesis on BKNG generally remains intact: likely U.S. share gains (check), disproportionate to APAC keeping more growth still in the tank (check) and underappreciated new customer acquisition drivers like air & payments (check & check),” the analyst said in a client note.

A Goldman Sachs analyst added that Booking’s results show continued travel demand.

“Over the remainder of this year, we expect the main investor debate to remain on the volatility in macroeconomic conditions and its resultant impact on global online travel trends. Looking beyond just this quarterly report, Booking management continues to focus on long-term revenue dollar scale opportunities and remains committed to aligning investments towards that opportunity set,” the analyst wrote in a note.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.