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Booking Holdings’ Q2 Earnings Miss Estimates; Revenues Jump 243%
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Booking Holdings’ Q2 Earnings Miss Estimates; Revenues Jump 243%

Shares of Booking Holdings (BKNG) gained 3.1% in extended trading hours on Wednesday and closed at $2,085.64 after the company’s second-quarter 2021 revenues beat estimates. Headquartered in Connecticut, Booking Holdings operates online travel fare metasearch engines and travel fare aggregators like OpenTable, Momondo, Rentalcars.com, Cheapflights, Kayak.com, Agoda.com, Priceline.com and Booking.com.

The company reported an adjusted loss of $2.55 per share, narrower than the year-ago loss of $10.81 per share but wider than analysts’ expectations of a loss of $2.10 per share. Total revenues surged 243% year-over-year to $2.16 billion, surpassing the Street’s estimate of $1.9 billion.

Agency revenues totaled $1.33 billion, significantly higher than $357 million in the second quarter of 2020. Merchant revenues amounted to $661 million, more than double the previous year figure of $245 million. Advertising revenues increased over six-fold year-over-year to $171 million. (See Booking Holdings stock chart on TipRanks)

The CEO of Booking Holdings, Glenn Fogel, said, “We are encouraged by another quarter of meaningful sequential improvement in booking trends with second-quarter room nights increasing 59% versus the first quarter of 2021, primarily driven by stronger results in Europe and in the U.S.”

Two months ago, RBC Capital analyst Brad Erickson initiated coverage on the stock with a Hold rating and a price target of $2,400 (15.1% upside potential). The analyst said, “A re-opening is now well-priced into Booking and the company remains a distant third in U.S. alternative accommodations.”

Overall, the stock has a Moderate Buy consensus based on 7 Buys and 6 Holds. The average Booking Holdings price target of $2,592.73 implies 24.3% upside potential. Shares of the company have gained nearly 21% over the past year.

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