Online travel agency Booking Holdings (NASDAQ: BKNG) will be reporting results this Tuesday afternoon. Here’s what to look for.
Booking beat analysts’ revenue expectations last quarter, reporting revenues of $7.35 billion, up 8.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and solid growth in its bookings. It reported 325 million nights booked, up 5.2% 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 6.1% year on year, slowing from the 12.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 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 Q3 results, giving us a hint as to what we can expect. Fiverr’s revenues decreased 15.8% year on year, beating analysts’ expectations by 8.4%, and Etsy reported revenues up 10.9%, topping estimates by 3.8%. Fiverr traded up 4.2% following the results while Etsy was also up 4.5%.
Read our full analysis of Fiverr’s results here and Etsy’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.1% on average over the last month. Booking is down 6% during the same time and is heading into earnings with an average analyst price target of $232.71 (compared to the current share price of $148.78).
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