Online travel agency Booking Holdings (NASDAQ: BKNG) will be announcing earnings results this Tuesday after market hours. Here’s what to look for.
Booking beat analysts’ revenue expectations last quarter, reporting revenues of $6.35 billion, up 16% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates. It reported 285 million nights booked, up 9.2% year on year.
Is Booking a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Booking’s revenue to grow 15.7% year on year, improving from the 7.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Booking has a history of exceeding Wall Street’s expectations.
Looking at Booking’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.1%, meeting analysts’ expectations, and Netflix reported revenues up 16.2%, topping estimates by 0.5%. Coursera traded down 11.6% following the results while Netflix was also down 9.7%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 16.7% on average over the last month. Booking is up 9.5% during the same time and is heading into earnings with an average analyst price target of $231.98 (compared to the current share price of $180.32).
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