Airbnb ABNB is scheduled to release fourth-quarter 2024 results on Feb. 13.

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

ABNB expects fourth-quarter 2024 revenues between $2.39 billion and $2.44 billion, implying year-over-year growth of 2% on a reported basis.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.42 billion, indicating year-over-year growth of 9.19%.

The consensus mark for earnings is pegged at 63 cents per share, up 6.8% over the past 30 days. The figure indicates a 17.11% decrease from the year-ago quarter’s reported figure.

ABNB has a mixed earnings surprise history. The company’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the other two, resulting in an average surprise of 20.83%.

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for ABNB’s Q4 Earnings

Airbnb experienced an acceleration in Nights and Experiences Booked throughout the third quarter of 2024, which carried into the fourth quarter of 2024, driven by robust demand across both core and expansion markets for long and short lead bookings. This trend is expected to have persisted in the to-be-reported quarter, benefiting top-line growth.

Airbnb expects a modest year-over-year increase in Average Daily Rate (ADR), driven by sustained demand for larger and higher-priced listings, along with a slight benefit from foreign exchange. This growth is likely to have contributed to the company's top-line expansion in the fourth quarter of 2024.

ABNB is prioritizing mainstream adoption of hosting, enhancing its core service and expanding beyond accommodations. Progress in these areas is anticipated to have continued in the quarter under review.

Airbnb is expanding its local payment options in countries such as Vietnam, Denmark and Poland. By next spring, it aims to offer nearly 40 local payment methods worldwide, improving user convenience and driving bookings across diverse markets. The company is likely to have benefited from this continuous momentum.

However, Airbnb anticipates a margin compression in EBITDA in the fourth quarter of 2024, expecting a margin of 27-28%, down from the previous quarters. ABNB is expected to have suffered from increased operational costs, impacting its bottom line.

What Our Model Says

According to the Zacks model, 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. That is the exact case here.

ABNB currently has an Earnings ESP of +25.59% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:

Sony Group Corporation SONY has an Earnings ESP of +4.65% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sony shares have gained 6% year to date. SONY is set to report its third-quarter fiscal 2024 results on Feb. 13.

Roku ROKU currently has an Earnings ESP of +1.53% and a Zacks Rank #2.

Roku shares have gained 13.9% year to date. ROKU is set to report its fourth-quarter 2024 results on Feb. 13.

Amer Sports AS presently has an Earnings ESP of +2.27% and a Zacks Rank #2.

Amer Sports shares have returned 9.5% year to date. AS is set to report its fourth-quarter 2024 results on Feb. 25.

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