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Booking Holding (BKNG) to Post Q1 Earnings: What's in Store?

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Booking Holdings Inc. (BKNG - Free Report) is slated to report first-quarter 2021 results on May 5.

For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $1.12 billion, suggesting a decline of 51% from the year-ago quarter’s reported figure.

Further, the consensus mark for the bottom line stands at a loss of $7.26 per share, whereas it reported earnings of $3.77 per share in the prior-year quarter.

The company’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice. The earnings surprise is 12.03%, on average.

Booking Holdings Inc. Price and EPS Surprise

 

Booking Holdings Inc. Price and EPS Surprise

Booking Holdings Inc. price-eps-surprise | Booking Holdings Inc. Quote

Factors to Consider

The company’s strong focus on investments in systems and brand marketing is expected to have aided its first-quarter performance.

Moreover, the impacts of the loyalty programs on its platform and strong efforts toward enhancing the travel experience are expected to get reflected in the company’s to-be-reported quarterly results.

Further, discounting in the markets served by the company is expected to have aided the performance of agoda.com in the quarter under review. Moreover, agoda.com momentum is anticipated to have contributed to the company’s Merchant revenues in the to-be-reported quarter.

Additionally, strengthening cost-saving measures of the company are expected to have benefited its performance in the quarter.

Moreover,Booking Holdings’ highly variable cost structure and strong liquidity position are expected to have helped it navigate the coronavirus-induced crisis in the quarter under discussion.

However, the impacts of the disruptions caused by the ongoing pandemic in the global travel industry are likely to get reflected in Booking Holdings’ to-be-reported quarter’s results.

Moreover, the disruptions are expected to have continued hurting the company’sgross bookings, booked room nights and rental car days in the first quarter.

Also, sluggishness in its direct channel is expected to have been a headwind in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Booking Holdings this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Booking Holdings has an Earnings ESP of +28.46% and a Zacks Rank #4.

Stocks to Consider

Here are some stocks worth considering as our model shows that these have the right combination of elements to beat estimates this earnings season.

Vishay Intertechnology, Inc. (VSH - Free Report) has an Earnings ESP of +5.22% and a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank of 2 currently.

Synaptics Incorporated (SYNA - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank of 2 at present.

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