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Valued at a market cap of $83.8 billion, Airbnb, Inc. (ABNB) operates a global platform connecting hosts and guests to book stays and experiences. The company's marketplace features diverse accommodations, including private rooms, primary homes, and vacation rentals, accessible via online and mobile platforms. ABNB is expected to announce its fiscal Q4 earnings results on Tuesday, Feb. 11.
Ahead of this event, analysts expect the vacation home rental company to report a profit of $0.58 per share, down 23.7% from $0.76 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In Q3, ABNB missed the consensus EPS estimate by 1.8%.
For fiscal 2024, analysts expect the San Francisco, California-based-based company to report an EPS of $3.98, down 9.1% from $4.38 in fiscal 2023. However, EPS is anticipated to rebound and grow 10.1% year-over-year to $4.38 in fiscal 2025.
Shares of ABNB have declined 2.1% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 24.6% surge and the Consumer Discretionary Select Sector SPDR Fund's (XLY) nearly 32% return over the period.
Shares of Airbnb tumbled 8.7% on Nov. 8 following its mixed Q3 earnings results. Despite beating revenue estimates with $3.7 billion, profit narrowly missed expectations at $2.13 per share, falling short of the consensus estimate. Additionally, the company’s heavy spending on marketing, particularly in under-penetrated international markets like Brazil and Japan, drove up sales and marketing expenses by 27.5% to $514 million. Lower bookings at the beginning of the quarter, along with concerns over tough year-over-year comparisons and increased costs, weighed on investor sentiment.
Analysts' consensus view on Airbnb’s stock is cautious, with a "Hold" rating overall. Among 38 analysts covering the stock, nine recommend "Strong Buy," one suggests "Moderate Buy," 23 indicate “Hold,” one gives "Moderate Sell," and four advise "Strong Sell." As of writing, ABNB is trading below the average analyst price target of $139.16.
