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%.
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%.
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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%.
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%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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