Why Is Booking Holdings (BKNG) Up 11.7% Since Last Earnings Report?

Core Viewpoint - Booking Holdings reported strong third-quarter earnings, beating estimates and showing significant year-over-year growth, which has led to a positive stock performance in recent weeks [2][3]. Financial Performance - Earnings per share for Q3 2024 were $83.89, exceeding the Zacks Consensus Estimate by 7.63% and increasing 16% year over year [2]. - Revenues reached $7.994 billion, surpassing estimates by 4.76% and growing 8.9% year over year on a reported basis [2]. - Merchant revenues were $4.97 billion, accounting for 62.2% of total revenues, and increased by 26% year over year [4]. - Agency revenues were $2.75 billion, representing 34.4% of total revenues, but decreased by 12.2% year over year [5]. - Advertising & Other revenues totaled $269 million, up 3.1% year over year [6]. - Gross bookings amounted to $43.4 billion, reflecting a 9.1% increase year over year [7]. Operational Metrics - Adjusted EBITDA for the quarter was $1.9 million, up 11.6% year over year, with an adjusted EBITDA margin of 45.8%, expanding by 110 basis points [10]. - GAAP operating expenses were $4.82 billion, up 13.6% year over year, with operating expenses as a percentage of revenues increasing to 60.2% [10]. Balance Sheet Strength - As of September 30, 2024, cash and cash equivalents totaled $15.78 billion, down from $16.3 billion as of June 30, 2024 [13]. - Long-term debt decreased to $16.21 billion from $13.36 billion as of June 30, 2024 [14]. - Free cash flow was reported at $2.3 billion, slightly down from $2.4 billion in the previous quarter [15]. Future Guidance - For Q4 2024, room night growth is expected between 6% and 8%, with gross bookings growth anticipated in the 7-9% range [16]. - For the full year 2024, gross bookings growth is projected at about 8%, with revenue growth expected at 10% [17]. Market Performance - Booking Holdings shares increased by 25.9% year to date, outperforming the Zacks Internet Commerce industry's return of 25.1% and the broader Zacks Retail-Wholesale sector's 19.6% [3].