Why Is Booking Holdings (BKNG) Up 11.7% Since Last Earnings Report?

A month has gone by since the last earnings report for Booking Holdings (BKNG). Shares have added about 11.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Booking Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Can BKNG's Solid Q3 Beat and Robust View Push the Stock Higher?Booking Holdings reported third-quarter 2024 earnings of $83.89 per share, beating the Zacks Consensus Estimate by 7.63%. The figure surged 16% year over year.BKNG’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 16.75%.Revenues of $7.994 billion beat the Zacks Consensus Estimate by 4.76% and increased 8.9% year over year on a reported basis and 9% on a constant currency (cc) basis. BKNG shares were up more than 5% in pre-market trading. Booking Holdings appreciated 25.9% year to date (YTD), outperforming the Zacks Internet Commerce industry’s return of 25.1% and the broader Zacks Retail-Wholesale sector’s 19.6%.BKNG’s Top Line in DetailMerchant revenues were $4.97 billion (62.2% of the total revenues), up 26% on a year-over-year basis.Agency revenues were $2.75 billion (34.4% of the total revenues), down 12.2% year over year.Advertising & Other revenues were $269 million (3.4% of the total revenues), up 3.1% year over year.Booking Holdings saw 16.2% growth in rental cars on a year-over-year basis and 38.7% growth in the airline tickets unit in the reported quarter.Booked room night numbers were 299 million in the third quarter, up 8% year over year and exceeded management guidance by 3%.Booking Holdings’ Bookings Up Y/Y on Strong Merchant GrowthThe company’s overall gross bookings totalled $43.4 billion, up 9.1% on a reported basis and 9% on a cc basis year over year.Merchant bookings were $28.4 billion, up 27.3% year over year.Agency bookings were $15.1 billion, down 14% year over year.BKNG's Operating ResultsAdjusted EBITDA in the reported quarter was $1.9 million, up 11.6% year over year. Adjusted EBITDA margin was 45.8%, which expanded 110 basis points (bps) year over year.GAAP operating expenses were $4.82 billion, up 13.6% on a year-over-year basis. As a percentage of revenues, operating expenses increased 250 bps year over year to 60.2%.Adjusted Fixed Operating expenses increased 7% year over year to $1.27 billion.BKNG’s Balance Sheet Remains StrongAs of Sept. 30, 2024, the company’s cash and cash equivalents totalled $15.78 billion, down from $16.3 billion as of June 30, 2024. Booking Holdings had $16.21 billion of long-term debt, down from $13.36 billion as of June 30, 2024.Free cash flow was $2.3 billion compared with $2.4 billion reported in the previous quarter.BKNG Offers Strong GuidanceFor the fourth quarter of 2024, Room Night Growth is expected between 6% and 8%. Gross Bookings Growth is expected in the 7-9% range.Fourth-quarter growth in revenues are expected between 7% and 9%. Adjusted EBITDA is expected between $1.6 billion and $1.65 billion.For 2024, Gross Bookings Growth is expected to be about 8%.For 2024, growth in revenues is expected to be just 10%. Adjusted EBITDA growth is expected between 13% and 14%. Earnings are expected to grow in the high-teens percentage rate.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.VGM ScoresCurrently, Booking Holdings has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Booking Holdings has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Booking Holdings Inc. (BKNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks