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

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Airbnb (ABNB - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 15.

For the fourth quarter, the company expects revenues between $1.39 billion and $1.48 billion. The Zacks Consensus Estimate for the same is pegged at $1.46 billion, implying growth of 70.3% from the year-ago reported figure.

Further, the consensus mark for earnings is pegged at 5 cents per share, indicating a surge of 100.5% from the year-ago reported figure. The metric has been unchanged over the past 30 days.

Airbnb beat on earnings in two of the trailing four quarters and missed on the other two occasions, with the average surprise being 12.8%.

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. Price and EPS Surprise

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

Factors to Consider

Travel rebound is expected to have continued benefiting Airbnb’s performance in the fourth quarter.

The company has been consistently gaining momentum among hosts and guests across all regions served. This is expected to have remained a major positive.

Strengthening momentum across North America, EMEA and Latin America is likely to have supported its performance in the quarter under review.

Growing work-from-home initiatives amid the global coronavirus pandemic have been encouraging people to travel at their convenient time. This flexibility in travel plans is expected to have increased Airbnb’s bookings in the to-be-reported quarter.

ABNB has been witnessing growth in long-term stays of 28 days or more. This is anticipated to have continued aiding fourth-quarter performance.

Its positive outlook toward Nights and Experiences Booked and Gross Booking Value might reflect in the upcoming quarterly results.

Yet, uncertainties related to the ongoing pandemic are expected to have remained a concern. The emergence of new variants might have led to an increase in booking cancellations in the fourth quarter.

Further, higher product development and sales & marketing expenses are likely to have hurt the company’s profitability.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Airbnb 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. But that’s not the case here. 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 0.00% and a Zacks Rank #1, at present.

Stocks to Consider

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

NetApp (NTAP - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NetApp is scheduled to release third-quarter fiscal 2022 results on Feb 23. The Zacks Consensus Estimate for NTAP’s earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year reported figure.

Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2 at present.

Keysight Technologies is set to report first-quarter fiscal 2022 results on Feb 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.56 per share, which suggests an increase of 9.1% from the prior-year reported figure.

Zscaler (ZS - Free Report) has an Earnings ESP of +2.1% and a Zacks Rank #2 at present.

Zscaler is scheduled to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for ZS’s earnings is pegged at 11 cents per share, which suggests an increase of 10% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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