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Airbnb (ABNB) to Report Q1 Earnings: What's in the Cards?

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Airbnb (PLAN - Free Report) is set to report first-quarter 2021 results on May 13.

For revenues, the company expects year-over-year decline in first-quarter 2021 to be less than that of fourth quarter 2020 driven by gradual improvement in guests’ willingness to book stays. In the fourth quarter, revenues of $859 million declined 22% year over year.

The Zacks Consensus Estimate for revenues currently stands at $714.5 million.

For the quarter, the consensus mark for loss has remained unchanged at $1.15 per share over the past 30 days.

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

Airbnb, Inc. Price, Consensus and EPS Surprise

Airbnb, Inc. Price, Consensus and EPS Surprise

Airbnb, Inc. price-consensus-eps-surprise-chart | Airbnb, Inc. Quote

Factors to Consider

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. Lockdowns and continued cross-border travel restrictions in many countries including Great Britain, Italy and Germany are expected to have hurt profits.

In fourth-quarter 2020, gross booking value (net of cancellations and alterations) was $5.9 billion, which declined 31% year over year.

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

Airbnb dominates the home-sharing platform in the travel market space. Airbnb’s hosts span more than 220 countries and regions, and approximately 100,000 cities.

As of Dec 31 2020, Airbnb had more than 4 million hosts around the world, with 86% of the same located outside of the United States.

Continued resilience in many areas including North America, domestic travel, nearby travel, long-term stays, and stays in less densely populated areas are expected to have driven bookings and night stays 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 -1.67% 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:

Ralph Lauren Corporation (RL - Free Report) has an Earnings ESP of +6.25% and is Zacks #1 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +1.57% and a Zacks Rank #2.

NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +2.51% and is #2 Ranked.

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