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The time to strongly consider buying Airbnb (ABNB - Free Report) ) stock again is upon us. Higher travel demand continues to boost the online vacation rental company with Airbnb stock landing a Zacks Rank #1 (Strong Buy) and the Bull of the Day.
Many travel-related companies are seeing their stocks move higher this earnings season with Delta Air Lines (DAL - Free Report) ) second-quarter results leading the way so far. Delta was able to showcase robust quarterly growth on its way to beating top and bottom-line expectations.
The same scenario could be in the cards for Airbnb which stock recently touched a new 52-week high of $147.67 a share on Wednesday and has now soared +70% this year.
Image Source: Zacks Investment Research
Strong Quarterly Growth
Higher highs could be around the corner for Airbnb stock leading up to its second-quarter report on Tuesday, August 1. Notably, Airbnb had a very strong first quarter that was highlighted by revenue growing 20% year over year to $1.81 billion with net income at $117 million, the company’s first profitable Q1 on a GAAP basis.
Image Source: Zacks Investment Research
Before non-recurring items and to the delight of investors, Airbnb’s Q1 earnings soared to $0.18 per share compared to an adjusted EPS loss of -$0.03 in the prior-year quarter. This also blasted Q1 earnings expectations of $0.10 per share by 80% with ABNB shares continuing to move higher as the company’s outlook has strengthened.
It’s noteworthy that Airbnb has beaten earnings expectations for eight consecutive quarters with strong quarterly growth expected to continue. To that point, second-quarter sales are expected at $2.41 billion, up 14% from a year ago. Even better, Q2 earnings are projected to climb 39% to $0.78 per share compared to EPS of $0.56 in Q2 2022.
Image Source: Zacks Investment Research
Growth & Outlook
Airbnb’s road to profitability has been exceptional since the company went public in 2020 and posted an adjusted loss of -$15.53 a share that year. At the moment Airbnb stock has an “A” Zacks Style Scores grade for Growth in addition to its Zacks Rank #1 (Strong Buy).
Intriguingly, Airbnb’s annual earnings are now forecasted to climb 26% in fiscal 2023 at $3.53 per share with 2022 EPS at $2.70. Plus, fiscal 2024 earnings are anticipated to jump another 16% to $4.10 per share.
Image Source: Zacks Investment Research
On the top line, total sales are projected to rise 13% in FY23 and jump another 13% in FY24 to $10.75 billion. Fiscal 2024 sales projections would represent a very stellar 126% growth over the last five years with 2020 sales at $3.37 billion.
Image Source: Zacks Investment Research
Bottom Line
Simply put, Airbnb’s growth trajectory is too impressive to overlook at the moment. Now appears to be an ideal time to buy Airbnb stock as we progress through the summer months and peak travel season. It would be no surprise if ABNB shares keep soaring with Q2 earnings approaching and strong quarterly growth expected to reconfirm the company’s attractive outlook.
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Bull of the Day: Airbnb (ABNB)
The time to strongly consider buying Airbnb (ABNB - Free Report) ) stock again is upon us. Higher travel demand continues to boost the online vacation rental company with Airbnb stock landing a Zacks Rank #1 (Strong Buy) and the Bull of the Day.
Many travel-related companies are seeing their stocks move higher this earnings season with Delta Air Lines (DAL - Free Report) ) second-quarter results leading the way so far. Delta was able to showcase robust quarterly growth on its way to beating top and bottom-line expectations.
The same scenario could be in the cards for Airbnb which stock recently touched a new 52-week high of $147.67 a share on Wednesday and has now soared +70% this year.
Image Source: Zacks Investment Research
Strong Quarterly Growth
Higher highs could be around the corner for Airbnb stock leading up to its second-quarter report on Tuesday, August 1. Notably, Airbnb had a very strong first quarter that was highlighted by revenue growing 20% year over year to $1.81 billion with net income at $117 million, the company’s first profitable Q1 on a GAAP basis.
Image Source: Zacks Investment Research
Before non-recurring items and to the delight of investors, Airbnb’s Q1 earnings soared to $0.18 per share compared to an adjusted EPS loss of -$0.03 in the prior-year quarter. This also blasted Q1 earnings expectations of $0.10 per share by 80% with ABNB shares continuing to move higher as the company’s outlook has strengthened.
It’s noteworthy that Airbnb has beaten earnings expectations for eight consecutive quarters with strong quarterly growth expected to continue. To that point, second-quarter sales are expected at $2.41 billion, up 14% from a year ago. Even better, Q2 earnings are projected to climb 39% to $0.78 per share compared to EPS of $0.56 in Q2 2022.
Image Source: Zacks Investment Research
Growth & Outlook
Airbnb’s road to profitability has been exceptional since the company went public in 2020 and posted an adjusted loss of -$15.53 a share that year. At the moment Airbnb stock has an “A” Zacks Style Scores grade for Growth in addition to its Zacks Rank #1 (Strong Buy).
Intriguingly, Airbnb’s annual earnings are now forecasted to climb 26% in fiscal 2023 at $3.53 per share with 2022 EPS at $2.70. Plus, fiscal 2024 earnings are anticipated to jump another 16% to $4.10 per share.
Image Source: Zacks Investment Research
On the top line, total sales are projected to rise 13% in FY23 and jump another 13% in FY24 to $10.75 billion. Fiscal 2024 sales projections would represent a very stellar 126% growth over the last five years with 2020 sales at $3.37 billion.
Image Source: Zacks Investment Research
Bottom Line
Simply put, Airbnb’s growth trajectory is too impressive to overlook at the moment. Now appears to be an ideal time to buy Airbnb stock as we progress through the summer months and peak travel season. It would be no surprise if ABNB shares keep soaring with Q2 earnings approaching and strong quarterly growth expected to reconfirm the company’s attractive outlook.