Back to top

Image: Bigstock

Booking Holdings (BKNG) to Post Q3 Earnings: What's in Store?

Read MoreHide Full Article

Booking Holdings Inc. (BKNG - Free Report) is scheduled to report third-quarter 2021 results on Nov 3.

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $4.16 billion, suggesting growth of 57.4% from the year-ago reported figure.

Further, the consensus mark for earnings stands at $31.56 per share, indicating a jump of 157.2% from the year-ago quarter.

The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with an average surprise of 24.6%.

Booking Holdings Inc. Price and EPS Surprise

Booking Holdings Inc. Price and EPS Surprise

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

Key Factors to Note

In the third quarter, Booking Holdings is likely to have benefited from the ongoing vaccination drive and relaxation in travel restrictions all across the globe.

Growing domestic and international bookings are expected to have improved the quarterly performance.

Rising initiatives to strengthen the Booking.com brand and Genius loyalty program might have been a positive. Also, growing investments in the app to increase customer engagement are likely to have continued contributing well to the top line in the to-be-reported quarter.

Increasing efforts to bolster the accommodation business in the United States and U.K. are anticipated to have continued aiding the quarterly performance of the company.

Further, customer loyalty, increasing marketing strategies to acquire more customers, and growing investments to support payments and the Connected Trip are expected to have remained tailwinds.

During the quarter, its brand OpenTable collaborated with CLEAR to help diners get access to restaurants when they show proof of vaccination with the latter’s digital vaccine card.

In addition, its subsidiary Agoda introduced a landing page, www.agoda.com/PhuketSandbox, following the re-opening of Phuket tourism for fully vaccinated international travelers.

These initiatives are anticipated to have supported its performance in the quarter under review.

The company’s growing focus on maintaining a strong liquidity position is expected to have helped it navigate the coronavirus-induced crisis.

Yet, uncertainties related to the ongoing pandemic are likely to affect the upcoming quarterly results. Rising COVID-19 cases and new variants in some countries are expected to have remained concerns for the company.

What Our Model Says

Our proven model predicts 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.

It has an Earnings ESP of +33.10% and a Zacks Rank #3, at present.

Other Stocks to Consider

Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.

Advance Auto Parts (AAP - Free Report) has an Earnings ESP of +23.78% and a Zacks Rank of 2, at present.

AutoZone (AZO - Free Report) has an Earnings ESP of +3.52% and a Zacks Rank of 2, at present.

NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.