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Booking Holdings Inc. (BKNG - Free Report) reported third-quarter 2023 non-GAAP earnings of $72.32 per share, which beat the Zacks Consensus Estimate by 6.57%. The figure improved 36% year over year.
Revenues of $7.34 billion surpassed the Zacks Consensus Estimate by 1.54%. The top line also improved 21% year over year on a reported basis and 18% at constant-currency (cc).
Growing momentum in the global leisure travel demand environment was a tailwind.
In the reported quarter, Booking Holdings witnessed growth of 20% in rental cars and 56.6% in the airline tickets unit on a year-over-year basis.
Booked room night numbers increased 14.9% year over year to 276 million.
The company witnessed strong growth across its merchant and advertising and other businesses in the reported quarter.
However, weakness in agency bookings was a headwind.
The company’s shares have risen 40.9% in the year-to-date period compared with the Zacks Internet Commerce industry’s growth of 37.2%.
Booking Holdings Inc. Price, Consensus and EPS Surprise
Agency revenues totaled $3.13 billion (42.7% of total revenues), down 2.1% year over year.
Merchant revenues amounted to $3.94 billion (53.7% of total revenues), up 50.9% on a year-over-year basis.
Advertising & Other revenues totaled $261 million (3.6% of total revenues), up 11.1% from the year-ago quarter’s level.
Bookings
Booking Holdings’ overall gross bookings were $39.8 billion, which increased 24% year over year on a reported basis and 21% at cc.
Total gross bookings surpassed the Zacks Consensus Estimate of $38.08 billion.
Merchant bookings totaled $22.27 billion, up 5.4% from the prior-year quarter’s level. The figure beat the consensus mark of $20.11 billion.
Agency bookings amounted to $17.54 billion, down 5.5% from the prior-year quarter’s level. The figure also missed the consensus mark of $17.97 billion.
Operating Results
Adjusted EBITDA in the reported quarter totaled $3.3 billion, up 24% year over year.
Adjusted EBITDA margin was 44.7%, which expanded 80 basis points (bps) from the prior-year quarter’s level.
Operating expenses totaled $4.2 billion, up 22.2% on a year-over-year basis. As a percentage of revenues, the figure expanded 40 bps from the year-ago quarter’s figure.
Booking Holdings generated an operating margin of 42.3%, which contracted 40 bps year over year.
Balance Sheet
As of Sep 30, 2023, the company’s cash and cash equivalents totaled $13.29 billion, down from $14.6 billion as of Jun 30, 2023. Short-term investments amounted to $624 million, down from $640 million at the end of the previous quarter.
Account receivables totaled $3.45 billion compared with $2.8 billion in the prior quarter.
At the end of the third quarter, Booking Holdings had $11.86 billion of long-term debt, down from $13.2 billion at the end of the second quarter.
Zacks Rank & Stocks to Consider
Currently, Booking Holdings carries a Zacks Rank #3 (Hold).
Image: Bigstock
Booking Holdings (BKNG) Q3 Earnings Beat, Revenues Rise Y/Y
Booking Holdings Inc. (BKNG - Free Report) reported third-quarter 2023 non-GAAP earnings of $72.32 per share, which beat the Zacks Consensus Estimate by 6.57%. The figure improved 36% year over year.
Revenues of $7.34 billion surpassed the Zacks Consensus Estimate by 1.54%. The top line also improved 21% year over year on a reported basis and 18% at constant-currency (cc).
Growing momentum in the global leisure travel demand environment was a tailwind.
In the reported quarter, Booking Holdings witnessed growth of 20% in rental cars and 56.6% in the airline tickets unit on a year-over-year basis.
Booked room night numbers increased 14.9% year over year to 276 million.
The company witnessed strong growth across its merchant and advertising and other businesses in the reported quarter.
However, weakness in agency bookings was a headwind.
The company’s shares have risen 40.9% in the year-to-date period compared with the Zacks Internet Commerce industry’s growth of 37.2%.
Booking Holdings Inc. Price, Consensus and EPS Surprise
Booking Holdings Inc. price-consensus-eps-surprise-chart | Booking Holdings Inc. Quote
Top Line in Detail
Agency revenues totaled $3.13 billion (42.7% of total revenues), down 2.1% year over year.
Merchant revenues amounted to $3.94 billion (53.7% of total revenues), up 50.9% on a year-over-year basis.
Advertising & Other revenues totaled $261 million (3.6% of total revenues), up 11.1% from the year-ago quarter’s level.
Bookings
Booking Holdings’ overall gross bookings were $39.8 billion, which increased 24% year over year on a reported basis and 21% at cc.
Total gross bookings surpassed the Zacks Consensus Estimate of $38.08 billion.
Merchant bookings totaled $22.27 billion, up 5.4% from the prior-year quarter’s level. The figure beat the consensus mark of $20.11 billion.
Agency bookings amounted to $17.54 billion, down 5.5% from the prior-year quarter’s level. The figure also missed the consensus mark of $17.97 billion.
Operating Results
Adjusted EBITDA in the reported quarter totaled $3.3 billion, up 24% year over year.
Adjusted EBITDA margin was 44.7%, which expanded 80 basis points (bps) from the prior-year quarter’s level.
Operating expenses totaled $4.2 billion, up 22.2% on a year-over-year basis. As a percentage of revenues, the figure expanded 40 bps from the year-ago quarter’s figure.
Booking Holdings generated an operating margin of 42.3%, which contracted 40 bps year over year.
Balance Sheet
As of Sep 30, 2023, the company’s cash and cash equivalents totaled $13.29 billion, down from $14.6 billion as of Jun 30, 2023. Short-term investments amounted to $624 million, down from $640 million at the end of the previous quarter.
Account receivables totaled $3.45 billion compared with $2.8 billion in the prior quarter.
At the end of the third quarter, Booking Holdings had $11.86 billion of long-term debt, down from $13.2 billion at the end of the second 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 American Eagle Outfitters (AEO - Free Report) , Best Buy (BBY - Free Report) and Amazon (AMZN - Free Report) . While American Eagle Outfitters currently sports a Zacks Rank #1 (Strong Buy), Best Buy and Amazon carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ shares have risen 37.3% year to date. It has a long-term earnings growth rate of 15.31%.
Best Buy’s shares have risen 15.9% on a year-to-date basis. The company has a long-term earnings growth rate of 6.14%.
Amazon’s shares have rallied 47.6% on a year-to-date basis. AMZN has a long-term earnings growth rate of 28.5%.