|Bid||1,817.00 x 800|
|Ask||1,838.69 x 800|
|Day's Range||1,700.73 - 1,763.63|
|52 Week Range||1,107.29 - 2,094.00|
|Beta (5Y Monthly)||1.04|
|PE Ratio (TTM)||21.85|
|Earnings Date||Nov 05, 2020 - Nov 09, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1,730.00|
Shares in Booking Holdings (BKNG) rose 4% in Thursday’s after-hours trading after the travel giant posted second quarter earning results that beat the Street’s extremely low expectations. Shares in BKNG are currently trading down 11% year-to-date.Specifically Q2 Non-GAAP EPS of -$10.81 beat Street forecasts by $0.77 while GAAP EPS of $2.97 also beat by $16.88. Meanwhile revenue of $630M topped Street estimates by $55.14M- despite plunging 83.4% Adjusted EBITDA came in at -$376M which was better than the -$458M consensus.Gross bookings of $2.31B fell short of the consensus expectations of $3.37B- and represented a massive 91% decrease year-over-year. Room nights sold dropped 86.7%, and rental car days were almost completely demolished with a 90.4% decrease. Similarly, on a unit basis, airline tickets fell 69.7%.BKNG CEO Glenn D. Fogel commented: “We faced a challenging second quarter and continue to face challenges due to the impact of the COVID-19 pandemic on travel demand. However, we have witnessed improvement in booking trends since April, which is encouraging.”He continued: “Looking forward, we continue to execute on our operating plans to navigate the company through these challenging times and enable us to emerge from this crisis in a position of strength.”Following the earnings report RBC Capital’s Mark Mahaney reiterated his BKNG buy rating while ramping up the price target from $2,025 to $2,050 (17% upside potential). According to Mahaney “All in, Fundamental Trends were very negative, but we believe the worst is over for BKNG.”For instance, New Room Nights exited Q2 down 50% Y/Y, up from the -85% trough in April and improved to -35% in July. “Just like Expedia (EXPE), BKNG’s Q2 results reflected the ugly truth of travel today. Unlike EXPE, BKNG was able to point to notable improvement in July, though we remain cautious on the near-term sustainability of this” the analyst commented. (See BKNG stock analysis on TipRanks).Overall the stock has a cautiously optimistic Moderate Buy Street consensus with an average analyst price target of $1,749 which is in-line with the current share price.Related News: Etsy Crushes 2Q Revenue Expectations; Roth Raises Stock To Buy Roku Tops 2Q Estimates But Cautions About Ad Outlook Zynga Rises On Record 2Q Revenues Fueled By Digital Gaming Demand More recent articles from Smarter Analyst: * ServiceNow Prices $1.5B Public Offering; Moody’s Assigns Baa1 Rating * Groupon Soars 28% In Pre-Market On Stellar 2Q Beat * Zillow Surges 13% On Better-Than-Feared Earnings; Analyst Urges Caution * Cloudflare Beats 2Q Estimates On Strong Customer Growth
(Bloomberg) -- Booking Holdings Inc. beat Wall Street’s subdued expectations and gave a positive outlook for the current period, sending the shares 5% higher in extended trading.The Norwalk, Connecticut-based company said revenue fell a record 84% in the second quarter from a year earlier to $630 million. That was the lowest in a decade and shows how the Covid-19 pandemic has gutted the travel industry.However, analysts expected worse, with an average sales estimate of $569.4 million, according to data compiled by Bloomberg. And newly booked room nights were down 35% in July from a year earlier, an improvement from the 85% year-over-year decline in April.“We faced a challenging second quarter and continue to face challenges due to the impact of the Covid-19 pandemic on travel demand,” Chief Executive Officer Glenn Fogel said in a statement. “However, we have witnessed improvement in booking trends since April, which is encouraging.”Alternative accommodation, or vacation rentals, is seeing growth, Fogel said on a conference call with analysts Thursday. This part of the business represented about 40% of all new bookings in the second quarter, he noted. Demand has been driven by “staycations,” with travelers taking advantage of work-from-home policies to head to a beach house for a long weekend.Despite the uptick, Fogel reiterated that the travel industry will not fully recover without a vaccine. New outbreaks of Covid-19 in places such as Australia, Spain and some states in the U.S. threaten to spark another wave of cancellations. It will be “years and not quarters” before the market returns to pre-Covid levels, the CEO said.To cut costs, the online travel agent is eliminating 25% of workers at its main Booking.com business. Delivering the news in a video call with staff, Fogel said the past five months represented “the largest social and economic crisis of our lifetime.”The Covid-19 pandemic shut down most of the world over the past few months, all but eliminating global travel. Business trips have been replaced with video conferences and vacations have been canceled, forcing airlines to ground flights and hotels to close. Airbnb Inc. and TripAdvisor Inc. also eliminated a quarter of their workforce and last week, Expedia Group Inc. reported a similar revenue decline in the second quarter.There have been some nascent signs of a bounce back in the industry. Airbnb and Expedia have seen an increase in demand for domestic stays as some economies start to reopen. But Booking may take longer to show improvement because it is more exposed to Europe, which accounts for more than half its revenue, Cowen & Co. analyst Kevin Kopelman wrote in a note before the results. The continent was shut down more completely and has been slower to reopen.Booking, which runs five major travel brands including Kayak and Priceline, had previously signaled that second-quarter results would suffer the full force of the coronavirus since global lockdowns only went into effect near the tail-end of the first quarter. Net income was $122 million, or $2.97 a share, in the period, down more than 80% from a year earlier.Shares have fallen about 15% this year, while the S&P 500 Index is up about 3%.(Updates with comments from conference call throughout)For 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 8.47% and 21.71%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?