|Day's Range||106.00 - 106.00|
Shares of travel services and cruise operators, which have suffered a brutal week as fears over the coronavirus outbreak intensified, are ending the week on a brighter note, which may reflect the start of the bounce off oversold conditions that some Wall Street strategists are expecting.
The COVID-19 coronavirus is making its way across the world. The outbreak began at the end of 2019 in Wuhan, China; it has killed roughly 2,500 people, infected more than 83,000 people overall and spread to nearly 50 countries, including the U.S., since then.The coronavirus has now passed the 2002-03 SARS and 2015 MERS outbreaks in scale, and that has triggered heavy selling: Stock indices around the world, including here at home, have been sent into correction territory. Numerous stock picks are already in bear markets.It's no small worry. The SARS outbreak tallied 774 deaths across more than 8,000 cases over a six-month period, yet helped knock China's GDP down from 11.1% in the first quarter of 2003 to 9.1% in the second quarter. The coronavirus's ultimate potential to disrupt the global economy is far worse.This health issue is weighing on most stocks, but it's cutting particularly deep into a few specific industries where the financial strain is already being felt. If there's any silver lining, it's that, like with SARS, this could end up being an opportunity to buy otherwise high-quality stocks at a discount for a potential snap-back.Here, we look at 13 stock picks that are being hammered by the coronavirus outbreak. These stocks might be best avoided until a clearer picture of the coronavirus's eventual fallout develops. But they eventually might be extremely attractive buy-the-dip prospects. SEE ALSO: 11 Best Stocks to Ride Out the Coronavirus Outbreak
Booking Holdings (NASDAQ: BKNG), the world leader in online travel and related services, today announced that Chief Executive Officer Glenn Fogel, Chief Financial Officer David Goulden and SVP of Finance Michael Noonan will be attending the Bank of America Merrill Lynch 2020 Consumer & Retail Technology Conference in New York City on March 10, 2020. They will be available for onsite meetings scheduled in advance.
(Bloomberg) -- Booking Holdings Inc. shares slipped as Wall Street worried about the extent that fear about the spread of coronavirus will curb global travel trends.At least three analysts reduced their bookings projections for the year given limited visibility after the company said it’s impossible to predict where and how the outbreak will disrupt travel. A bleak outlook for the first quarter overshadowed fourth-quarter revenue and earnings that topped the highest analyst estimates.Wedbush analyst James Hardiman cautioned that 2020 could wind up being a “lost year” for the company. The shares fell as much as 5.1% to their lowest level in three years.Here’s what Wall Street is saying:Jefferies (Brent Thill)Hold, price target cut to $1,800 from $1,900“With the stock down 18% YTD we think investors were anticipating substantial 1Q weakness, and many will view the guidance as appropriately conservative.”While Booking beat estimates across all key metrics in fourth quarter, “investor concern is shifting to coronavirus” as management expects revenue and Ebitda for the first quarter to decline.Management expects the new payments platform to reach 25% of the company’s gross bookings, “which we believe will drive accelerating growth in the merchant business and create a more frictionless booking experience.”Piper Sandler (Michael Olson)Neutral, price target $1,750 from $1,900“As many were anticipating, the coronavirus is impacting global travel trends, which management indicated has already been detrimental to 1Q results to date and creates a high degree of uncertainty for the remainder of the quarter.”“The company’s lower than consensus guidance is based on trends observed to date, along with a continued negative impact on travel trends throughout the remainder of the quarter.”“While there is, as is typical for Booking, likely some element of conservatism built into management’s guidance, we also think it is worth noting that there is limited visibility around any ongoing impact of the coronavirus and the company’s ability to exceed its guidance mid-points will be largely dependent on the severity of the outbreak.”What Bloomberg Intelligence Says“Weakening travel demand will keep pressuring Booking’s room-night and sales growth through 1H, yet we believe the company’s direct-traffic advantage and lead in mobile will have it in a better position vs. Expedia after the coronavirus impact becomes clear. Ebitda decline is likely to be more pronounced in the near term amid less leverage from performance advertising, coupled with revenue-growth declines and spending to build its own payments platform.”\-- Mandeep Singh, BI senior tech analyst\-- Click here for researchSusquehanna (Shyam Patil)Positive, price target $2,250“The coronavirus is clearly a near-term headwind that is difficult to handicap both in magnitude and duration.”“While we expect 1H trends to be softer with extremely limited visibility, we continue to remain positive on BKNG’s secular opportunity to penetrate hotels and alternative accommodations room nights.”Benchmark (Dan Kurnos)Hold rating“We assume there will be a meaningful rebound in 2021, although without any real visibility on the 2020 base, it is hard to judge the order of magnitude or if the entire impact of the coronavirus will be recovered.”“At current levels, and given the ever transitory nature of these types of events, Booking is probably worth a shot as a low-risk long-term play.”“However, until we get more clarity on the coronavirus situation, estimates may need to come down more aggressively than anyone suspects.”SunTrust (Naved Khan)Buy, price target $2,250“While the spread of coronavirus will likely impact [near-term] performance, 4Q results also show that the underlying fundamentals remain solid.”“We’re tweaking our estimates to reflect uncertainty around coronavirus,” which has led to expected pressure on operating margin, average daily rate outlook, and bookings for fiscal year 2020.Wedbush (James Hardiman)Neutral, price target $1,750 from $2,000“2019 finished on a strong note, and 2020 appeared to be off to a strong start before coronavirus took a massive and still-unbounded bite out of earnings power.”“In many ways, 2020 will prove to be a lost year, and yet we agree with management’s assertion that travel demand will ultimately rebound and that strong travel companies such as BKNG may ultimately emerge from the current crisis even stronger than before.”To contact the reporter on this story: Kamaron Leach in New York at email@example.comTo contact the editor responsible for this story: Catherine Larkin at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Delta Air Lines is reducing flights to South Korea while Hawaiian Airlines will suspend them entirely, as airlines deal with growing concern about the spread of the new virus beyond China.
Like other travel companies, Booking Holdings officials are grappling with the fluid nature of the coronavirus and the negative impact on its business. And, like one other company, Expedia Group, that's been making headlines about attacking internal bloat, Booking Holdings intends to get costs in line, although the extent of any budget trims wasn't specified. […]
(Bloomberg) -- Booking Holdings Inc. gave a bleak outlook for the first quarter due to the spreading coronavirus that’s put a damper on global travel.The Norwalk, Connecticut-based online travel operator said room nights booked would drop 5% to 10% in the first quarter. Analysts were looking for an increase of 5%, having already lowered their expectations from earlier projections of 8% growth in mid-January. The company also said revenue would decline as much as 7% in the current period from a year earlier.“The coronavirus has had a significant and negative impact across our business during the first quarter,” the company said in a statement Wednesday.Booking has seen an increase in cancellations, a reduction in new bookings and pressure on average daily rates from the virus, the company’s Chief Financial Officer David Goulden said on the earnings call. “As you will know, it’s not possible to predict where and to what degree outbreaks of the coronavirus will disrupt travel patterns,” he added. Booking expects growth declines will continue through March.The Covid-19 virus, which is on track to becoming a pandemic, sent the stock market tumbling 6% over two days earlier this week, and the travel sector is among those worst affected. Airlines have halted flights, hundreds of hotels have been shuttered and tourism reports estimate billions of dollars in visitor spending will be lost this year. The virus was first reported in China, but has since spread across Asia and into Europe and the Middle East. Its scale and spread has already dwarfed the SARS outbreak and health officials in the U.S. are bracing for an outbreak at home. Booking shares have dropped 19% this year and rival Expedia Group Inc., which has less direct exposure to China, has shed about 6%. Booking slid 2.4% in extended trading after the report.China is by far the world’s largest source of travel, with more international departures than any other country, said Nicholas Wyatt, head of research and analysis for travel and tourism at GlobalData. “This is an extremely difficult thing to put a number on because we don’t know how long it’s going to go on for, how long restrictions will be in place for or how long it will take for consumer confidence to return,” Wyatt said.More than 20% of Booking’s room nights were generated in the Asia-Pacific region last year, according to Cowen & Co. Kevin Kopelman, an analyst at the firm, said he expects “the whole year to be impacted.”But it’s not just China. Booking is also “heavily exposed to travel disruptions in Europe, where it has a room-night exposure of over 50%, while in China it’s about 15%,” through its partnership with Trip.com and ownership of Agoda, according to Bloomberg Intelligence analyst Rik Stevens.A recent report from consulting firm Tourism Economics estimates the U.S. will lose 1.6 million visitors from China as a result of the coronavirus, a 28% drop for 2020.In the fourth quarter, before the virus erupted, Booking did better than expected. The company, formerly known as Priceline, reported revenue of $3.34 billion, topping the $3.27 billion analysts were projecting. Room nights booked grew by 12% in the period, the company said in a statement, compared with the average analyst projection for an increase of of 9.47%. Profit excluding some costs was $23.30 a share, also better than forecasts.Aside from the virus, Booking is also being squeezed by Alphabet Inc.’s Google and home-share startup Airbnb Inc.Last year, Google redesigned its hotel search function which pushed online travel companies down in search results and means they are no longer getting as many free clicks from travelers. Earlier this month, Expedia Chairman Barry Diller said Google was an “existential” threat to online travel agents. Airbnb also is a formidable competitor as the dominant player in the alternative accommodation market, forcing Booking to pumping resources into its vacation rentals segment to keep up. This is the fastest growing part of its business and now makes up 20% of total revenue. Booking, which is most well-known in Europe, has been running brand campaigns in the U.S. to drive customers toward its non-hotel listings.(Updates with CFO comments in fourth paragraph)To contact the reporter on this story: Olivia Carville in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Booking Holdings (BKNG) delivered earnings and revenue surprises of 5.38% and 1.52%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Booking Holdings, parent of airline-booking and restaurant-reservation services, reported stronger-than-expected fourth-quarter earnings and revenue. But it also warned that the coronavirus would hurt its first quarter.
Booking on Wednesday reported better-than-expected fourth-quarter results, but its guidance fell short of estimates amid concerns about the coronavirus' impact on travel demand. Analysts polled by Investing.com anticipated EPS of $22.03 on revenue of $3.29B.
Fourth quarter 2019 financial results for Booking Holdings (NASDAQ: BKNG) will be made available at approximately 4:00 p.m. ET on Wednesday, February 26, through a press release posted to the company's Investor Relations website: http://ir.bookingholdings.com.
When searching for a hotel room, travelers consistently prioritize two features above all: the hotel’s price and the hotel’s quality. Properties with the highest customer scores and the lowest rates are consistently the most popular.
Booking Holdings (BKNG) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
After less than three months of focusing on the day to day operations of Expedia Group, chairman Barry Diller and vice chairman Peter Kern took their first overt steps in reshaping the company with plans to lay off 12 percent of its workforce. Expedia Group's leadership sent an email Monday to employees globally saying it […]
Booking Holdings' (BKNG) Q4 results are likely to reflect strength in all platforms. However, macro uncertainties and growing competition from local and international players might have been concerns.
Arjan Dijk spent more than a decade running marketing from Google's Mountain View, California, headquarters. But as senior vice president and chief marketing officer at Booking.com since the summer, he's now charged with building the U.S. profile of a Europe-based brand that has had trouble unseating Expedia stateside among travelers. However, Dijk thinks Booking.com, based […]
Despite seeing Q4 results that topped street estimates, Booking Holdings is lower in after hours trading after lowering guidance for Q1 earnings on coronavirus fears. Yahoo Finance’s Seana Smith joins The Final Round to break down the earnings report.