Booking Holdings Stock Rises on Strong Q4, Dividend Hike, $20B Buyback Plan

Core Insights - Booking Holdings reported fourth-quarter results that exceeded expectations, leading to a rise in its stock price during premarket trading [2][7] - The company achieved $5.47 billion in revenue for Q4 2024, surpassing the$5.19 billion forecast by analysts [2] - Adjusted earnings per share (EPS) were $41.55, significantly higher than the$36.70 consensus [3] Financial Performance - Gross bookings reached $37.2 billion, exceeding the$34.5 billion estimate from analysts [3] - All key metrics, including bookings, revenue, and adjusted EPS, showed year-over-year growth [3] Corporate Actions - Booking announced a new $20 billion stock buyback program, in addition to the remaining$7.7 billion from the previous program [4] - The quarterly dividend was increased by 10% to $9.60 per share, up from$8.75 a year ago [4] Future Outlook - The company anticipates revenue growth of 2% to 4% year-over-year in Q1, with gross bookings expected to rise by 5% to 7% [5] - For the full year, mid-single digit percentage increases are expected for both revenue and gross bookings, while adjusted EPS is projected to grow in the low double-digit percentage range [5] Analyst Reactions - Analysts from Jefferies and JPMorgan raised their price targets for Booking stock to $5,400 and$5,750, respectively, following the earnings report [6] - Travel demand was noted to remain strong, and the company plans to increase its social media advertising spend, particularly on Meta Platforms [6] - Booking shares rose approximately 3% on the day of the report and have increased roughly 35% over the past year [6]