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What's in Store for Booking Holdings' (BKNG) Q3 Earnings?
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Booking Holdings Inc. (BKNG - Free Report) is slated to report third-quarter 2020 results on Nov 5, after the closing bell.
Notably, its surprise history has been decent. The company surpassed estimates thrice and missed once in the trailing four quarters, with an average negative surprise of 2.8%.
The online travel company delivered an earnings surprise of 8.5% in the last reported quarter.
Trend in Estimate Revision
For the third quarter, the Zacks Consensus Estimate for earnings has declined 3.1% to $17.21 per share over the past 30 days. This indicates a decrease of 62.1% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.62 billion, implying a decline of 48% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
The COVID-19 crisis and its lingering effect on global travel are likely to reflect on Booking Holdings’ upcoming results.
Being a travel-focused company, it has been largely impacted by the coronavirus pandemic, social distancing and shelter-in-place restrictions.
In the last reported quarter, the company reported a sharp plunge in bookings. Notably, booked room nights number plunged 86.7% from the prior-year quarter. Also, it witnessed year-over-year decline of 69.7% and 90.4% in the airline tickets unit and rental car days, respectively.
The trend is expected to have continued in the third quarter as the global pandemic has shown no signs of slowing down. Worsening travel trend and increasing cancellation rate of bookings are expected to have impacted the company’s performance in the quarter.
Weak performance of its direct channel is expected to have impacted total room nights booked in the to-be-reported quarter.
However, strength across other platforms is expected to reflect on the results to some extent.
Merchant revenues are expected to have increased in the to-be-reported quarter, driven by strength across agoda.com and rentalcars.com. While agoda.com is expected to have benefited from discounting in the markets served by the company, rentalcars.com is likely to have improved from persistent operational improvements.
In addition, during the quarter, Booking Holdings announced that it has closed several offices around the world. This announcement was in line with its intention of reducing global workforce. Such cost-saving measures should have helped the company reduce expenses to some extent in the quarter.
In all, this pandemic situation is expected to have been a major headwind for the global travel industry in the near term and impact Booking Holdings’ third-quarter results.
What Our Model Says
Our proven model does not predict an earnings beat for Booking Holdings this time around. The combination of a positiveBKNG Quick QuoteBKNG - Free Report) %20is%20slated%20to%20report%20third-quarter%202020%20results%20on%20Nov%205,%20after%20the%20closing%20bell.%20%20Notably,%20its%20surprise%20history%20has%20been%20decent.%20The%20company%20surpassed%20estimates%20thrice%20and%20missed%20once%20in%20the%20trailing%20four%20quarters,%20with%20an%20average%20negative%20surprise%20of%202.8%.%20%20%20The%20online%20travel%20company%20delivered%20an%20earnings%20surprise%20of%208.5%%20in%20the%20last%20reported%20quarter.%20%20Trend%20in%20Estimate%20Revision%20%20For%20the%20third%20quarter,%20the%20Zacks%20Consensus%20Estimate%20for%20earnings%20has%20declined%203.1%%20to%20%2417.21%20per%20share%20over%20the%20past%2030%20days.%20This%20indicates%20a%20decrease%20of%2062.1%%20from%20the%20year-ago%20reported%20figure.%20%20The%20consensus%20mark%20for%20revenues%20is%20pegged%20at%20%242.62%20billion,%20implying%20a%20decline%20of%2048%%20from%20the%20year-ago%20reported%20figure.%20%20Let???s%20see%20how%20things%20have%20shaped%20up%20for%20this%20announcement.%20%20Factors%20to%20Note%20%20The%20COVID-19%20crisis%20and%20its%20lingering%20effect%20on%20global%20travel%20are%20likely%20to%20reflect%20on%20Booking%20Holdings???%20upcoming%20results.%20%20Being%20a%20travel-focused%20company,%20it%20has%20been%20largely%20impacted%20by%20the%20coronavirus%20pandemic,%20social%20distancing%20and%20shelter-in-place%20restrictions.%20%20In%20the%20last%20reported%20quarter,%20the%20company%20reported%20a%20sharp%20plunge%20in%20bookings.%20Notably,%20booked%20room%20nights%20number%20plunged%2086.7%%20from%20the%20prior-year%20quarter.%20Also,%20it%20witnessed%20year-over-year%20decline%20of%2069.7%%20and%2090.4%%20in%20the%20airline%20tickets%20unit%20and%20rental%20car%20days,%20respectively.%20%20The%20trend%20is%20expected%20to%20have%20continued%20in%20the%20third%20quarter%20as%20the%20global%20pandemic%20has%20shown%20no%20signs%20of%20slowing%20down.%20Worsening%20travel%20trend%20and%20increasing%20cancellation%20rate%20of%20bookings%20are%20expected%20to%20have%20impacted%20the%20company???s%20performance%20in%20the%20quarter.%20%20Weak%20performance%20of%20its%20direct%20channel%20is%20expected%20to%20have%20impacted%20total%20room%20nights%20booked%20in%20the%20to-be-reported%20quarter.%20%20However,%20strength%20across%20other%20platforms%20is%20expected%20to%20reflect%20on%20the%20results%20to%20some%20extent.%20%20%20Merchant%20revenues%20are%20expected%20to%20have%20increased%20in%20the%20to-be-reported%20quarter,%20driven%20by%20strength%20across%20agoda.com%20and%20rentalcars.com.%20While%20agoda.com%20is%20expected%20to%20have%20benefited%20from%20discounting%20in%20the%20markets%20served%20by%20the%20company,%20rentalcars.com%20is%20likely%20to%20have%20improved%20from%20persistent%20operational%20improvements.%20%20In%20addition,%20during%20the%20quarter,%20Booking%20Holdings%20announced%20that%20it%20has%20closed%20several%20offices%20around%20the%20world.%20This%20announcement%20was%20in%20line%20with%20its%20intention%20of%20reducing%20global%20workforce.%20Such%20cost-saving%20measures%20should%20have%20helped%20the%20company%20reduce%20expenses%20to%20some%20extent%20in%20the%20quarter.%20%20In%20all,%20this%20pandemic%20situation%20is%20expected%20to%20have%20been%20a%20major%20headwind%20for%20the%20global%20travel%20industry%20in%20the%20near%20term%20and%20impact%20Booking%20Holdings???%20third-quarter%20results.%20%20What%20Our%20Model%20Says%20%20Our%20proven%20model%20does%20not%20predict%20an%20earnings%20beat%20for%20Booking%20Holdings%20this%20time%20around.%20The%20combination%20of%20a%20positive%20Earnings%20ESP%20and%20a%20Zacks%20Rank%20#1%20(Strong%20Buy),%202%20(Buy)%20or%203%20(Hold)%20increases%20the%20odds%20of%20an%20earnings%20beat.%20That%20is%20not%20the%20case%20here%20as%20you%20will%20see%20below.%20%20Earnings%20ESP:%20The%20company%20has%20an%20Earnings%20ESP%20of%20-3.39%.%20You%20can%20uncover%20the%20best%20stocks%20to%20buy%20or%20sell%20before%20they???re%20reported%20with%20our%20Earnings%20ESP%20Filter.%20%20Zacks%20Rank:%20Currently,%20Booking%20Holdings%20has%20a%20Zacks%20Rank%20#3%20(Hold).%20%20Stocks%20That%20Warrant%20a%20Look%20%20Here%20are%20a%20few%20stocks%20worth%20considering,%20as%20our%20model%20shows%20that%20these%20have%20the%20right%20combination%20of%20elements%20to%20deliver%20an%20earnings%20beat%20in%20the%20upcoming%20releases.%20%20MercadoLibre,%20Inc.%20(MELI - Free Report) %20has%20an%20Earnings%20ESP%20of%20+269.05%%20and%20carries%20a%20Zacks%20Rank%20of%201,%20at%20present.%20You%20can%20see%20the%20complete%20list%20of%20today???s%20Zacks%20#1%20Rank%20stocks%20here.%20%20NVIDIA%20Corporation%20(NVDA - Free Report) %20has%20an%20Earnings%20ESP%20of%20+1.75%%20and%20carries%20a%20Zacks%20Rank%20of%202,%20currently.%20%20Marchex,%20Inc.%20(MCHX - Free Report) %20has%20an%20Earnings%20ESP%20of%20+16.67%%20and%20currently%20carries%20a%20Zacks%20Rank%20of%202.%20%20Legal%20Marijuana:%20An%20Investor???s%20Dream%20%20Imagine%20getting%20in%20early%20on%20a%20young%20industry%20primed%20to%20skyrocket%20from%20%2417.7%20billion%20in%202019%20to%20an%20expected%20%2473.6%20billion%20by%202027.%20%20%20%20Although%20marijuana%20stocks%20did%20better%20as%20the%20pandemic%20took%20hold%20than%20the%20market%20as%20a%20whole,%20they???ve%20been%20pushed%20down.%20This%20is%20exactly%20the%20right%20time%20to%20get%20in%20on%20selected%20strong%20companies%20at%20a%20fraction%20of%20their%20value%20before%20COVID%20struck.%20Zacks???%20Special%20Report,%20Marijuana%20Moneymakers,%20reveals%2010%20exciting%20tickers%20for%20urgent%20consideration.%20%20%20Download%20Marijuana%20Moneymakers%20FREE%20>>"> Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of -3.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Booking Holdings has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Bigstock
What's in Store for Booking Holdings' (BKNG) Q3 Earnings?
Booking Holdings Inc. (BKNG - Free Report) is slated to report third-quarter 2020 results on Nov 5, after the closing bell.
Notably, its surprise history has been decent. The company surpassed estimates thrice and missed once in the trailing four quarters, with an average negative surprise of 2.8%.
The online travel company delivered an earnings surprise of 8.5% in the last reported quarter.
Trend in Estimate Revision
For the third quarter, the Zacks Consensus Estimate for earnings has declined 3.1% to $17.21 per share over the past 30 days. This indicates a decrease of 62.1% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.62 billion, implying a decline of 48% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Booking Holdings Inc. Price and EPS Surprise
Booking Holdings Inc. price-eps-surprise | Booking Holdings Inc. Quote
Factors to Note
The COVID-19 crisis and its lingering effect on global travel are likely to reflect on Booking Holdings’ upcoming results.
Being a travel-focused company, it has been largely impacted by the coronavirus pandemic, social distancing and shelter-in-place restrictions.
In the last reported quarter, the company reported a sharp plunge in bookings. Notably, booked room nights number plunged 86.7% from the prior-year quarter. Also, it witnessed year-over-year decline of 69.7% and 90.4% in the airline tickets unit and rental car days, respectively.
The trend is expected to have continued in the third quarter as the global pandemic has shown no signs of slowing down. Worsening travel trend and increasing cancellation rate of bookings are expected to have impacted the company’s performance in the quarter.
Weak performance of its direct channel is expected to have impacted total room nights booked in the to-be-reported quarter.
However, strength across other platforms is expected to reflect on the results to some extent.
Merchant revenues are expected to have increased in the to-be-reported quarter, driven by strength across agoda.com and rentalcars.com. While agoda.com is expected to have benefited from discounting in the markets served by the company, rentalcars.com is likely to have improved from persistent operational improvements.
In addition, during the quarter, Booking Holdings announced that it has closed several offices around the world. This announcement was in line with its intention of reducing global workforce. Such cost-saving measures should have helped the company reduce expenses to some extent in the quarter.
In all, this pandemic situation is expected to have been a major headwind for the global travel industry in the near term and impact Booking Holdings’ third-quarter results.
What Our Model Says
Our proven model does not predict an earnings beat for Booking Holdings this time around. The combination of a positiveBKNG Quick QuoteBKNG - Free Report) %20is%20slated%20to%20report%20third-quarter%202020%20results%20on%20Nov%205,%20after%20the%20closing%20bell.%20%20Notably,%20its%20surprise%20history%20has%20been%20decent.%20The%20company%20surpassed%20estimates%20thrice%20and%20missed%20once%20in%20the%20trailing%20four%20quarters,%20with%20an%20average%20negative%20surprise%20of%202.8%.%20%20%20The%20online%20travel%20company%20delivered%20an%20earnings%20surprise%20of%208.5%%20in%20the%20last%20reported%20quarter.%20%20Trend%20in%20Estimate%20Revision%20%20For%20the%20third%20quarter,%20the%20Zacks%20Consensus%20Estimate%20for%20earnings%20has%20declined%203.1%%20to%20%2417.21%20per%20share%20over%20the%20past%2030%20days.%20This%20indicates%20a%20decrease%20of%2062.1%%20from%20the%20year-ago%20reported%20figure.%20%20The%20consensus%20mark%20for%20revenues%20is%20pegged%20at%20%242.62%20billion,%20implying%20a%20decline%20of%2048%%20from%20the%20year-ago%20reported%20figure.%20%20Let???s%20see%20how%20things%20have%20shaped%20up%20for%20this%20announcement.%20%20Factors%20to%20Note%20%20The%20COVID-19%20crisis%20and%20its%20lingering%20effect%20on%20global%20travel%20are%20likely%20to%20reflect%20on%20Booking%20Holdings???%20upcoming%20results.%20%20Being%20a%20travel-focused%20company,%20it%20has%20been%20largely%20impacted%20by%20the%20coronavirus%20pandemic,%20social%20distancing%20and%20shelter-in-place%20restrictions.%20%20In%20the%20last%20reported%20quarter,%20the%20company%20reported%20a%20sharp%20plunge%20in%20bookings.%20Notably,%20booked%20room%20nights%20number%20plunged%2086.7%%20from%20the%20prior-year%20quarter.%20Also,%20it%20witnessed%20year-over-year%20decline%20of%2069.7%%20and%2090.4%%20in%20the%20airline%20tickets%20unit%20and%20rental%20car%20days,%20respectively.%20%20The%20trend%20is%20expected%20to%20have%20continued%20in%20the%20third%20quarter%20as%20the%20global%20pandemic%20has%20shown%20no%20signs%20of%20slowing%20down.%20Worsening%20travel%20trend%20and%20increasing%20cancellation%20rate%20of%20bookings%20are%20expected%20to%20have%20impacted%20the%20company???s%20performance%20in%20the%20quarter.%20%20Weak%20performance%20of%20its%20direct%20channel%20is%20expected%20to%20have%20impacted%20total%20room%20nights%20booked%20in%20the%20to-be-reported%20quarter.%20%20However,%20strength%20across%20other%20platforms%20is%20expected%20to%20reflect%20on%20the%20results%20to%20some%20extent.%20%20%20Merchant%20revenues%20are%20expected%20to%20have%20increased%20in%20the%20to-be-reported%20quarter,%20driven%20by%20strength%20across%20agoda.com%20and%20rentalcars.com.%20While%20agoda.com%20is%20expected%20to%20have%20benefited%20from%20discounting%20in%20the%20markets%20served%20by%20the%20company,%20rentalcars.com%20is%20likely%20to%20have%20improved%20from%20persistent%20operational%20improvements.%20%20In%20addition,%20during%20the%20quarter,%20Booking%20Holdings%20announced%20that%20it%20has%20closed%20several%20offices%20around%20the%20world.%20This%20announcement%20was%20in%20line%20with%20its%20intention%20of%20reducing%20global%20workforce.%20Such%20cost-saving%20measures%20should%20have%20helped%20the%20company%20reduce%20expenses%20to%20some%20extent%20in%20the%20quarter.%20%20In%20all,%20this%20pandemic%20situation%20is%20expected%20to%20have%20been%20a%20major%20headwind%20for%20the%20global%20travel%20industry%20in%20the%20near%20term%20and%20impact%20Booking%20Holdings???%20third-quarter%20results.%20%20What%20Our%20Model%20Says%20%20Our%20proven%20model%20does%20not%20predict%20an%20earnings%20beat%20for%20Booking%20Holdings%20this%20time%20around.%20The%20combination%20of%20a%20positive%20Earnings%20ESP%20and%20a%20Zacks%20Rank%20#1%20(Strong%20Buy),%202%20(Buy)%20or%203%20(Hold)%20increases%20the%20odds%20of%20an%20earnings%20beat.%20That%20is%20not%20the%20case%20here%20as%20you%20will%20see%20below.%20%20Earnings%20ESP:%20The%20company%20has%20an%20Earnings%20ESP%20of%20-3.39%.%20You%20can%20uncover%20the%20best%20stocks%20to%20buy%20or%20sell%20before%20they???re%20reported%20with%20our%20Earnings%20ESP%20Filter.%20%20Zacks%20Rank:%20Currently,%20Booking%20Holdings%20has%20a%20Zacks%20Rank%20#3%20(Hold).%20%20Stocks%20That%20Warrant%20a%20Look%20%20Here%20are%20a%20few%20stocks%20worth%20considering,%20as%20our%20model%20shows%20that%20these%20have%20the%20right%20combination%20of%20elements%20to%20deliver%20an%20earnings%20beat%20in%20the%20upcoming%20releases.%20%20MercadoLibre,%20Inc.%20(MELI - Free Report) %20has%20an%20Earnings%20ESP%20of%20+269.05%%20and%20carries%20a%20Zacks%20Rank%20of%201,%20at%20present.%20You%20can%20see%20the%20complete%20list%20of%20today???s%20Zacks%20#1%20Rank%20stocks%20here.%20%20NVIDIA%20Corporation%20(NVDA - Free Report) %20has%20an%20Earnings%20ESP%20of%20+1.75%%20and%20carries%20a%20Zacks%20Rank%20of%202,%20currently.%20%20Marchex,%20Inc.%20(MCHX - Free Report) %20has%20an%20Earnings%20ESP%20of%20+16.67%%20and%20currently%20carries%20a%20Zacks%20Rank%20of%202.%20%20Legal%20Marijuana:%20An%20Investor???s%20Dream%20%20Imagine%20getting%20in%20early%20on%20a%20young%20industry%20primed%20to%20skyrocket%20from%20%2417.7%20billion%20in%202019%20to%20an%20expected%20%2473.6%20billion%20by%202027.%20%20%20%20Although%20marijuana%20stocks%20did%20better%20as%20the%20pandemic%20took%20hold%20than%20the%20market%20as%20a%20whole,%20they???ve%20been%20pushed%20down.%20This%20is%20exactly%20the%20right%20time%20to%20get%20in%20on%20selected%20strong%20companies%20at%20a%20fraction%20of%20their%20value%20before%20COVID%20struck.%20Zacks???%20Special%20Report,%20Marijuana%20Moneymakers,%20reveals%2010%20exciting%20tickers%20for%20urgent%20consideration.%20%20%20Download%20Marijuana%20Moneymakers%20FREE%20>>"> Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of -3.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Booking Holdings has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
MercadoLibre, Inc. (MELI - Free Report) has an Earnings ESP of +269.05% and carries a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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