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Booking Holdings Inc. (BKNG), founded in 1997 and headquartered in Norwalk, Connecticut, is a leading global provider of online travel and related services. With a market cap of $157.7 billion, Booking Holdings operates a portfolio of brands, including Booking.com, Priceline, Agoda, and Kayak, offering services across travel reservations, accommodations, and rental cars in more than 220 countries and territories. The company is scheduled to announce its fourth-quarter earnings results after the market closes on Thursday, Feb. 20.
Ahead of the event, analysts expect BKNG to report a profit of $35.71 per share, up 11.6% from $32 in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $83.89 per share in the last quarter outpaced the consensus estimates by 7.6%. Booking Holdings' Q3 outperformance was driven by robust growth in alternative accommodations, complementary travel verticals, and improved European market conditions.
For fiscal 2024, analysts expect Booking Holdings to report an EPS of $181.68, up 19.4% from $152.22 in fiscal 2023. Additionally, its EPS is projected to grow 15.2% year over year to $209.31 in fiscal 2025.
Booking Holdings' shares have gained 36.3% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 25.3% gains and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 32.9% returns over the same period.
Booking Holdings' shares jumped 4.8% following its strong Q3 earnings report on Oct. 30. The company posted an 8.9% year-over-year revenue increase to $7.99 billion, exceeding estimates by 4.8%. EBITDA rose to $3.67 billion, outperforming forecasts by 9.6%, with the margin improving to 45.8% from 44.7% a year ago.
However, the operating margin declined to 39.8% from 42.3%, and the free cash flow margin fell sharply to 28.7% from 40.6% in the prior quarter. Despite these pressures, robust demand drove a year-over-year increase of 23 million room nights booked, reaching 299 million.
The consensus opinion on BKNG stock is cautiously optimistic, with an overall “Moderate Buy” rating. Out of 35 analysts covering the stock, 20 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and 13 suggest a “Hold.”
The average target price for BKNG is $5,294.26, indicating a potential upside of 11.1% from the current price levels.
