Booking Holdings (BKNG) delivered stronger-than-expected Q4 and full-year 2021 results characterized by robust growth in gross travel bookings. Earnings and revenue came in above consensus estimates despite being negatively impacted by the COVID-19 pandemic and government restrictions. BKNG shares fell 1.92% to close at $2,469.83 on February 23.
Booking Holdings is a U.S. company that operates an online platform allowing people to make travel and restaurant reservations.
Total revenues in Q4 increased 141% year-over-year to $3 billion, exceeding consensus estimates of $2.85 billion. Full-year total revenues increased 61% year-over-year to $11 billion, driven by a 116% increase in gross travel bookings to $76.6 billion.
Booking Holdings posted non-GAAP net income of $654 million in Q4, an improvement from a loss of $23 million delivered in the same quarter last year. Non-GAAP net income per diluted share landed at $15.83 compared to a non-GAAP net loss of $0.57 last year and came in better than consensus estimates of $13.53.
According to Chief Executive Officer (CEO) Glenn Fogel, fourth-quarter results exceeded expectations. The executive believes the company is well-positioned to capitalize on improving travel demand even though there could be periods where COVID impacts travel trends.
Yesterday, Stifel Nicolaus analyst Scott Devitt reiterated a Hold rating on Booking Holdings with a $2,650 price target, implying 7.29% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 7 Buys and 6 Holds. The average Booking Holdings price target of $2,740.77 implies 10.97% upside potential to current levels.
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