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Airbnb (ABNB) to Report Q1 Earnings: What's in the Cards?

Airbnb ABNB is scheduled to report first-quarter 2022 results on May 3.

For the first quarter, the company expects revenues between $1.41 billion and $1.48 billion. The Zacks Consensus Estimate for the same is pegged at $1.45 billion, implying growth of 63.9% from the year-ago reported figure.

Further, the consensus mark stands at a loss of 28 cents per share, indicating a surge of 84% from the year-ago reported figure. The consensus has declined 3.7% in the past seven days.

Airbnb beat on earnings in three of the trailing four quarters and missed on one, with the average surprise being 32.4%.

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. Price and EPS Surprise
Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote

Factors to Consider

Airbnb has been consistently upgrading various aspects of the Airbnb service to gain momentum among hosts and guests. This is likely to have aided its first-quarter performance.

Growing work-from-home initiatives amid the global coronavirus pandemic have been encouraging people to travel at their convenient times. This flexibility in travel plans is expected to have driven Airbnb’s bookings in the to-be-reported quarter.

Further, optimism regarding the ongoing vaccination drive is anticipated to have driven bookings in the quarter under review.

Strengthening momentum across Latin America, North America and EMEA is likely to have supported its performance in the first quarter.

Recovery in both longer-distance and cross-border travel owing to reduction in travel restrictions is anticipated to have continued aiding performance in the quarter under discussion.

Its positive outlook toward Nights and Experiences Booked and Average Daily Rates might reflect in the upcoming quarterly results.

Yet, uncertainties related to the ongoing pandemic are expected to have remained a concern. The emergence of new variants has likely led to an increase in booking cancellations in the first quarter.

Also, weak travel demand and travel restrictions in the Asia Pacific region are likely to have affected the quarterly performance.

Further, intense competition in the online travel market is anticipated to have remained a headwind in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Airbnb this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of +4.76% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Analog Devices ADI has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.

Cisco Systems CSCO has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.

HP HPQ has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, suggesting an increase of 13.98% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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