Booking Holdings Shares Jump Despite Earnings Miss

Published on: 06 Nov, 2018

Booking Holdings Inc. (NASDAQ: BKNG) reported its third quarter financial results after market close on Monday. Despite missing earnings estimates, the Company’s shares jumped by 7%, breaking the USD 2,000 share price threshold.

For the third quarter, Booking Holdings reported revenue of USD 4.84 Billion, increasing 11% year over year and topping analysts’ estimates of USD 4.8 Billion. The Company reported earnings per share of USD 37.78, increasing 7% year over year, but missing estimates of USD 38.21.

Third quarter gross travel bookings for Booking Holdings were USD 24.3 Billion, increasing 12% year over year.

Booking Holdings reported Agency revenue of USD 3.54 Billion, increasing narrowly from USD 3.52 Billion last year. Merchant revenue increased to USD 1.04 Billion from USD 684.28 Million the year prior. Advertising and other revenues was USD 258.55 Million, increasing USD 226.03 Million the year prior.

Booking Holdings reported 149.6 million rooms sold in the quarter, increasing 29.4% year over year. Rental cars were reported at 18 million, increasing 12.5% year over year, while airline ticket sales fell by 2.5%, reporting sales of 1.9 million tickets.

For the fourth quarter, Booking Holdings is forecasting revenue to increased between 13% to 16% year over year. On a non-GAAP basis, net income is expected to be between USD 880 Million and USD 905 Million. Diluted earnings per share is expected to be in the range of USD 18.90 to USD 19.40. Analysts are forecasting an EPS of USD 18.74.

Booking Holdings also forecasts room nights booked to increase 9% to 12% year over year. Total gross travel bookings is expected to increase 6% to 9%.

Booking Holdings shares have now increased 14.16% this year.

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Austin Chiu

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