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Booking Holdings Inc. (BKNG - Free Report) reported non-GAAP earnings of $3.90 per share in first-quarter 2022 against the Zacks Consensus Estimate for a loss of 14 cents. Further, the figure compares favorably with the loss of $5.26 per share reported in the year-ago quarter.
Revenues of $2.7 billion surpassed the Zacks Consensus Estimate of $2.5 billion. The top line improved 136.3% year over year on a reported basis and 146% on a constant-currency (cc) basis.
Improving travel demand and booking trends from the year-ago quarter were tailwinds.
Booking Holdings witnessed growth of 53% in rental car on a year-over-year basis. The company also experienced 69.1% year-over-year growth in the airline tickets unit in the reported quarter.
Booked room night number, which was 198 million in the first quarter, surged 99.7% from the prior-year quarter.
The company witnessed strong growth across its agency, merchant, and advertising and other businesses in the reported quarter.
However, headwinds related to the coronavirus pandemic and macroeconomic uncertainties remain overhangs for the company.
Nevertheless, the ongoing vaccination drive, strengthening confidence for travel among people and optimism regarding the busy summer travel season remain positives.
Booking Holdings Inc. Price, Consensus and EPS Surprise
The company generates the bulk of revenues from international markets, wherein the agency model is more popular. This is reflected in the merchant/agency split of revenues, which was 39/53.8% in the first quarter (the previous quarter’s split was 34.9/58.7%)
Agency revenues were $1.45 billion, up 102.2% year over year. Merchant revenues were $1.05 billion, up 181.5% on a year-over-year basis.
Advertising & Other revenues were $195 million (7.2% of total revenues), increasing significantly from $51 million in the year-ago quarter.
Bookings
Booking Holdings’ overall gross bookings totaled $27.3 billion, which increased 128.7% on a reported and 140% on a cc basis from the year-ago quarter.
Total gross bookings surpassed the Zacks Consensus Estimate of $25.4 billion.
Merchant bookings were $11.01 billion, up 240.6% from the prior-year quarter.
Agency bookings were $16.3 billion, rising 87.1% from the prior-year quarter.
Operating Results
Adjusted EBITDA in the reported quarter was $310 million against a loss of $195 million in the prior-year quarter.
Per management, operating expenses were $2.5 billion, up 73.6% on a year-over-year basis. As a percentage of revenues, the figure contracted significantly to 93.5% from 127.3% in the year-ago quarter.
Notably, the company generated an operating income of $174 million against a loss of $311 million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2022, cash and cash equivalents were $10.5 billion, down from $11.13 billion as of Dec 31, 2021.
Account receivable amounted to $1.6 billion in the reported quarter compared with $1.4 billion in the previous quarter.
At the end of the first quarter, Booking Holdings had $8.4 billion of long-term debt compared with $8.9 billion at the end of the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
DICK’s is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. It has gained 48.7% over a year. The long-term earnings growth rate for DKS is currently projected at 11.7%.
Lowe’s is slated to report fourth-quarter fiscal 2021 results on Feb 23. It has gained 28.1% over a year. The long-term earnings growth rate for LOW is currently projected at 13.8%.
Dollar Tree is slated to report fourth-quarter fiscal 2021 results on Mar 2. It has gained 27% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.2%.
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Booking Holdings (BKNG) Q1 Earnings Beat, Revenues Rise Y/Y
Booking Holdings Inc. (BKNG - Free Report) reported non-GAAP earnings of $3.90 per share in first-quarter 2022 against the Zacks Consensus Estimate for a loss of 14 cents. Further, the figure compares favorably with the loss of $5.26 per share reported in the year-ago quarter.
Revenues of $2.7 billion surpassed the Zacks Consensus Estimate of $2.5 billion. The top line improved 136.3% year over year on a reported basis and 146% on a constant-currency (cc) basis.
Improving travel demand and booking trends from the year-ago quarter were tailwinds.
Booking Holdings witnessed growth of 53% in rental car on a year-over-year basis. The company also experienced 69.1% year-over-year growth in the airline tickets unit in the reported quarter.
Booked room night number, which was 198 million in the first quarter, surged 99.7% from the prior-year quarter.
The company witnessed strong growth across its agency, merchant, and advertising and other businesses in the reported quarter.
However, headwinds related to the coronavirus pandemic and macroeconomic uncertainties remain overhangs for the company.
Nevertheless, the ongoing vaccination drive, strengthening confidence for travel among people and optimism regarding the busy summer travel season remain positives.
Booking Holdings Inc. Price, Consensus and EPS Surprise
Booking Holdings Inc. price-consensus-eps-surprise-chart | Booking Holdings Inc. Quote
Top Line in Detail
The company generates the bulk of revenues from international markets, wherein the agency model is more popular. This is reflected in the merchant/agency split of revenues, which was 39/53.8% in the first quarter (the previous quarter’s split was 34.9/58.7%)
Agency revenues were $1.45 billion, up 102.2% year over year. Merchant revenues were $1.05 billion, up 181.5% on a year-over-year basis.
Advertising & Other revenues were $195 million (7.2% of total revenues), increasing significantly from $51 million in the year-ago quarter.
Bookings
Booking Holdings’ overall gross bookings totaled $27.3 billion, which increased 128.7% on a reported and 140% on a cc basis from the year-ago quarter.
Total gross bookings surpassed the Zacks Consensus Estimate of $25.4 billion.
Merchant bookings were $11.01 billion, up 240.6% from the prior-year quarter.
Agency bookings were $16.3 billion, rising 87.1% from the prior-year quarter.
Operating Results
Adjusted EBITDA in the reported quarter was $310 million against a loss of $195 million in the prior-year quarter.
Per management, operating expenses were $2.5 billion, up 73.6% on a year-over-year basis. As a percentage of revenues, the figure contracted significantly to 93.5% from 127.3% in the year-ago quarter.
Notably, the company generated an operating income of $174 million against a loss of $311 million in the year-ago quarter.
Balance Sheet
As of Mar 31, 2022, cash and cash equivalents were $10.5 billion, down from $11.13 billion as of Dec 31, 2021.
Account receivable amounted to $1.6 billion in the reported quarter compared with $1.4 billion in the previous quarter.
At the end of the first quarter, Booking Holdings had $8.4 billion of long-term debt compared with $8.9 billion at the end of the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are DICK’s Sporting Goods (DKS - Free Report) , Lowe’s Companies (LOW - Free Report) and Dollar Tree (DLTR - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DICK’s is scheduled to release fourth-quarter fiscal 2021 results on Mar 8. It has gained 48.7% over a year. The long-term earnings growth rate for DKS is currently projected at 11.7%.
Lowe’s is slated to report fourth-quarter fiscal 2021 results on Feb 23. It has gained 28.1% over a year. The long-term earnings growth rate for LOW is currently projected at 13.8%.
Dollar Tree is slated to report fourth-quarter fiscal 2021 results on Mar 2. It has gained 27% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.2%.