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Why Is Booking Holdings (BKNG) Up 9.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Booking Holdings (BKNG - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Booking Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Booking Holdings Q1 Earnings Beat Estimates
Booking Holdings 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.68% due to these changes.
VGM Scores
Currently, Booking Holdings has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Booking Holdings has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Booking Holdings belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Match Group (MTCH - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Match Group reported revenues of $798.63 million in the last reported quarter, representing a year-over-year change of +19.6%. EPS of $0.74 for the same period compares with $0.67 a year ago.
Match Group is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of +13.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.3%.
Match Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Booking Holdings (BKNG) Up 9.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Booking Holdings (BKNG - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Booking Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Booking Holdings Q1 Earnings Beat Estimates
Booking Holdings 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.68% due to these changes.
VGM Scores
Currently, Booking Holdings has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Booking Holdings has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Booking Holdings belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Match Group (MTCH - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Match Group reported revenues of $798.63 million in the last reported quarter, representing a year-over-year change of +19.6%. EPS of $0.74 for the same period compares with $0.67 a year ago.
Match Group is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of +13.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.3%.
Match Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.