Booking Holdings BKNG 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%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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 has also outperformed its closest peers, including Expedia EXPE and TripAdvisor TRIP, but underperformed Travelzoo TZOO. 

While Expedia and Travelzoo shares have returned 6.1% and 81.7%, respectively, TripAdvisor fell 25.1%.

Steady travel demand is expected to boost Room Night Growth, driving the BKNG shares in the near term.

BKNG’s Top Line in Detail

Merchant 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 Growth

The company’s overall gross bookings totaled $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 Results

Adjusted 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 Strong

As of Sept. 30, 2024, the company’s cash and cash equivalents totaled $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 Guidance

For 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.

Zacks Rank

Currently, Booking Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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