Booking Holdings Inc. BKNG is scheduled to report its fourth-quarter 2024 results on Feb. 20.

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $5.19 billion, suggesting growth of 8.59% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at $35.75 per share, indicating a rise of 11.72% from the year-ago quarter’s reported number. The consensus mark has declined by a penny in the past 30 days.

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The company’s earnings beat estimates in each of the trailing four quarters, the average being 16.75%.

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

Key Factors to Note

Booking Holdings is expected to have demonstrated robust top-line growth in fourth-quarter 2024, primarily driven by strong leisure travel demand. The Zacks Consensus Estimate for the company’s gross bookings is pegged at $34.33 billion, indicating a year-over-year increase of 8.31%.

Booking Holdings is riding on its strong portfolio. Notable developments include the introduction of several key initiatives, including enhanced connected trip features, expansion of merchant options on Booking.com, advancing AI capabilities, growing alternative accommodations and upgrading the Genius loyalty program.

The growth of alternative accommodations, particularly through Booking.com, remains a key focus. This segment is expected to continue benefiting from the expansion of property listings and increased traveler interest.

The company anticipates continued strong travel demand, leading to healthy room night growth. The resilience of travel demand, particularly in regions like Europe and Asia, is expected to drive further growth in the to-be-reported quarter.

While flight bookings increased 39% in the third quarter of 2024 and car rentals rose 16%, BKNG expects these verticals have driven growth in the fourth quarter as well. The strong performance in both flights and car rentals are expected to have positively impacted overall gross bookings and contributed to the company’s revenue growth in to-be-reported quarter.

However, the agency model shows signs of weakness. The Zacks Consensus Estimate for agency revenues is pegged at $1.94 billion, indicating a decline of 6.04% year over year.

Despite the overall positive trajectory, Booking Holdings faces several challenges. The company must navigate through macroeconomic uncertainties, heightened geopolitical tensions in the Middle East and increasing competition in the online travel sector. These factors might have potentially impacted the company's performance and market position negatively in the to-be-reported quarter.

What Our Model Says

Per 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. But that’s not the exact case here.

Booking Holdings currently has an Earnings ESP of -2.51% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some other stocks worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this season.

Autohome ATHM has an Earnings ESP of +7.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Autohome shares have gained 0.7% year to date. ATHM is slated to report its fourth-quarter 2024 results on Feb. 20.

Sabre SABR has an Earnings ESP of +3.45% and currently carries a Zacks Rank #3.

SABR shares have lost 2.8% year to date. SABR is slated to report its fourth-quarter 2024 results on Feb. 20.

NCR Voyix Corporation VYX has an Earnings ESP of +142.86% and currently carries a Zacks Rank #3.

NCR Voyix shares have plunged 11.2% year to date. VYX is slated to report its fourth-quarter 2024 results on Feb. 27.

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Autohome Inc. (ATHM) : Free Stock Analysis Report

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