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What's in Store for Booking Holdings' (BKNG) Q1 Earnings?

Zacks Equity Research

Booking Holdings Inc. BKNG is slated to report first-quarter 2019 earnings on May 9, after the closing bell.

The surprise history has been impressive in Booking Holdings’ case. The company surpassed estimates in three of the trailing four quarters, with average positive surprise of 11.49%. The online travel company recorded a positive earnings surprise of 15.99% in the last reported quarter.

Strong Agency Revenues to Drive International Results

Booking Holdings generates bulk of revenues from international markets, wherein the agency model is more popular. This is reflected in the merchant/agency split of revenues, which was 21.6/73% in the fourth quarter.

We expect agency revenues to increase in the to-be-reported quarter as well, driven by strength across all its platforms.

Agoda and Rental Cars to Boost Merchant Revenues

Merchant revenues are also expected to grow in the to-be-reported quarter, driven by strength across agoda.com and rentalcars.com. While agoda.com is likely to benefit from discounting in the markets served by the company, rentalcars.com is expected to ride on continuous operational improvements.

Strong Room Night Growth

Room night growth is expected to improve in the quarter to be reported, driven by diverse inventory and brand recognition that tend to balance out the macro uncertainties related to any market, and growing competition from local and international players.

Strong performance of its direct channel is expected to drive total room nights booked in the to-be-reported quarter.

For the soon-to-be-reported quarter, Booking Holdings expects room nights booked to grow 6-8% from a year ago. Further, total gross bookings are anticipated to grow 5-7% year over year on a constant-currency basis.

What Our Model Suggests

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Currently, Booking Holdings has a Zacks Rank #3 and an Earnings ESP of 0.00%, which is not indicative of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Booking Holdings Inc. Price and EPS Surprise


Booking Holdings Inc. Price and EPS Surprise | Booking Holdings Inc. Quote

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise in the upcoming releases:

Agilent Technologies, Inc. A has an Earnings ESP of +2.10% and a Zacks Rank #2.

MongoDB, Inc. MDB has an Earnings ESP of +0.69% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Neon Therapeutics, Inc. NTGN has an Earnings ESP of +17.93% and a Zacks Rank #3.

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Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
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