Booking Holdings to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - Booking Holdings Inc. is expected to report strong revenue and earnings growth for the fourth quarter of 2024, driven by robust leisure travel demand and a solid portfolio of initiatives [1][3][4]. Financial Performance - The Zacks Consensus Estimate for revenues is $5.19 billion, reflecting an 8.59% increase year-over-year [1]. - The consensus estimate for earnings is$ 35.75 per share, indicating an 11.72% rise from the previous year [1]. - Booking Holdings has consistently beaten earnings estimates in the past four quarters, with an average beat of 16.75% [2]. Growth Drivers - Strong leisure travel demand is anticipated to contribute significantly to top-line growth, with gross bookings expected to reach $34.33 billion, an 8.31% year-over-year increase [3]. - The company is focusing on expanding alternative accommodations through Booking.com, which is expected to benefit from increased property listings and traveler interest [5]. - Flight bookings increased by 39% and car rentals rose by 16% in the third quarter of 2024, contributing positively to overall gross bookings and revenue growth [6]. Challenges - The agency model is showing signs of weakness, with agency revenues estimated at$ 1.94 billion, a decline of 6.04% year-over-year [7]. - Booking Holdings faces challenges from macroeconomic uncertainties, geopolitical tensions, and increasing competition in the online travel sector, which may negatively impact performance [8]. Earnings Outlook - According to the Zacks model, Booking Holdings has an Earnings ESP of -2.51% and a Zacks Rank of 3, indicating a lower likelihood of an earnings beat compared to previous quarters [9].