Market News

Booking Holdings Q3 Results Top Estimates; Website Traffic Indicated at It

Story Highlights

Given the solid Q2 results, Booking Holdings’ bounce back from the COVID-19-triggered slowdown is gaining momentum. The company also projects record revenues for Q3.

Booking Holdings (BKNG) posted Q2 2022 results that improved significantly from the year-ago quarter and topped Wall Street’s expectations. Also, the company projected record Q3 revenues, banking on the strong growth momentum.

Booking Holdings provides an online platform for making travel and restaurant reservations. It offers its services through various platforms, including, Priceline, and OpenTable.

Booking Holdings Bounced Back to Profitability

BKNG posted diluted earnings per share (EPS) of $19.08 compared to a net loss of $2.55 per share in the year-ago quarter. It also beat consensus estimates as analysts expected the company to post earnings of $18.19 a share. The return to profitability came as the company registered a 57% increase in gross travel bookings from the year-ago quarter to $34.5 billion. Room nights booked increased 56% from the year-ago quarter.

Revenue increased 99% from the year-ago quarter to $4.3 billion, in line with consensus estimates of $4.34 billion. The increase came as the company recovered from the COVID-19-triggered slowdown, with room nights surpassing 2019 levels for the first time.

Booking Holdings Chief Executive Officer (CEO), Glenn Fogel, is optimistic about the company’s future prospects. He writes, “Looking forward, we expect record Q3 revenue and are very busy working with our customers and partners to help enable an extremely busy summer travel season.”

Rising Website Traffic Predicted the Strong Results

Booking Holdings’ strong performance shouldn’t have surprised you if you have been a TipRanks’ user who leverages the website traffic screener. Booking Holdings’ rising website traffic had already indicated Q2 solid results.

According to the tool, the Booking Holdings website recorded a 25.03% quarterly increase in global visits to 578.9 million in Q2 compared to the previous quarter. Furthermore, year-to-date, Booking Holdings website traffic increased by 10.92%, compared to the same period last year.

Learn how Website Traffic can help you research your favorite stocks

Is Booking Holdings Stock a Buy?

Well, Wall Street is cautiously optimistic about the stock, with Moderate Buy consensus rating, based on 16 Buys and seven Holds. The average Booking Holdings price target of $2,523.95 implies 28.4% upside potential from current levels.

Key Takeaway for Investors

Booking Holdings is firing on all cylinders, as evidenced by the revenue and earnings growth registered in Q2. However, the decelerating growth rate in net bookings should be a point of concern.

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