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Airbnb (ABNB) to Report Q4 Earnings: What's in the Cards?

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Airbnb (ABNB - Free Report) is set to report fourth-quarter 2020 results on Feb 25.

On Dec 14, 2020 Airbnb completed its initial public offering. Hence, the fourth-quarter results will be its first quarterly earnings report since becoming a publicly traded company.

The Zacks Consensus Estimate for revenues currently stands at $735.1 million.

For the quarter, the consensus mark for loss has improved by a penny to $9.18 per share over the past 30 days.

Airbnb dominates the home-sharing platform in the travel market space. The company estimates serviceable addressable market to be $1.5 trillion, comprising $1.2 trillion for short-term stays and $239 billion for experiences.
 

 

Airbnb’s hosts span more than 220 countries and regions, and approximately 100,000 cities. Markedly, almost 55% of the company’s hosts are women.

As of Sep 30, 2020, Airbnb had more than 4 million hosts around the world, with 86% of the same located outside of the United States.

The company’s superior brand value and strong consumer awareness are expected to have driven top-line growth in the fourth quarter. Moreover, its strong host network is likely to have aided growth in the to-be-reported quarter.

However, the coronavirus outbreak severely impacted Airbnb’s business, and is also expected to have hurt the company’s top-line growth in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Airbnb has an Earnings ESP of -5.17% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering as per our model, as these have the right combination of elements to beat on earnings this reporting cycle:

CrowdStrike Holdings (CRWD - Free Report) has an Earnings ESP of +23.94% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Churchill Downs (CHDN - Free Report) has an Earnings ESP of +146.91% and a Zacks Rank #2.

Autodesk (ADSK - Free Report) has an Earnings ESP of +2.29% and is #2 Ranked.

 

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