Booking Holdings Inc.
BKNG
is scheduled to report first-quarter 2022 results on May 4.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.52 billion, suggesting growth of 121.04% from the year-ago quarter’s reported figure.
Further, the consensus mark for loss stands at 16 cents per share, which has narrowed from 17 cents in the past seven days. BKNG incurred a loss of $5.26 per share in the year-ago period.
The bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 19.1%.
Booking Holdings Inc. Price and EPS Surprise
Booking Holdings Inc. price-eps-surprise
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Booking Holdings Inc. Quote
Key Factors to Note
Booking Holdings’ first-quarter performance is expected to have benefited from strong gross bookings in Western Europe and North America, given the growing confidence among people regarding summer travel in these regions.
Growing work-from-home initiatives amid the global coronavirus pandemic continue to encourage people to travel according to their convenience. This flexibility in travel plans is expected to have driven BKNG’s bookings in the to-be-reported quarter.
Further, optimism about the ongoing vaccination drive and relaxation in travel restrictions in many parts of the world are anticipated to have driven its bookings in the quarter under review.
Increasing efforts to bolster the accommodation business are anticipated to have continued aiding Booking Holdings’ quarterly performance.
Rising initiatives to strengthen the Booking.com brand and the Genius loyalty program might have remained positives. Also, growing investments in the app to increase customer engagement are likely to have continued contributing significantly to the top line in the to-be-reported quarter.
Booking Holdings has been gaining momentum among travelers on the back of its flight offerings, a trend that most likely benefited the quarter under discussion.
Increasing marketing strategies to acquire more customers are also expected to have remained a tailwind. Besides, BKNG’s growing efforts toward digital marketing might reflect on the upcoming quarterly results.
Growing investments to support payments and the Connected Trip are expected to have supported the quarterly performance. Continuous efforts to make Booking.com attractive and the trusted payment intermediary among travelers and supplier partners might have aided the first-quarter performance.
In the reported quarter, Booking Holdings is expected to have gained momentum in the North American market on the back of Getaroom, which focuses on B2B distributor of hotel rooms.
Yet, uncertainties related to the coronavirus pandemic prevalent in the global travel industry are expected to have been a concern for BKNG. Effects of the pandemic in the Eastern Europe region might have been a headwind.
Also, the emergence of new COVID variants is likely to have induced massive booking cancellations in the first quarter.
Escalating marketing and information technology expenses are likely to have adversely impacted the quarterly performance.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Booking Holdings this time around. 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 case here. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Booking Holdings has an Earnings ESP of -465.32% and a Zacks Rank #3, at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Analog Devices
ADI
has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.
Cisco Systems
CSCO
has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year period’s reported figure.
HP
HPQ
has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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