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Airbnb Set to Report Q2 Earnings: What's in the Cards for the Stock?
AirbnbAirbnb(US:ABNB) ZACKSยท2025-08-04 18:25

Core Insights - Airbnb (ABNB) is set to release its second-quarter 2025 results on August 6, with expected revenues between $2.99 billion and $3.05 billion, indicating a year-over-year growth of 9-11% [1][9] - The Zacks Consensus Estimate for second-quarter revenues stands at $3.04 billion, reflecting a growth of 10.45% year over year [1][2] Revenue and Earnings Expectations - The consensus estimate for earnings is currently at 93 cents per share, revised upward by a penny in the last 30 days, representing an 8.14% increase from the previous year's quarter [2] - Airbnb has a mixed earnings surprise history, missing the Zacks Consensus Estimate in three of the last four quarters and beating it once, with an average surprise of 3.38% [2] Factors Influencing Q2 Performance - The favorable timing of Easter in April is expected to have contributed approximately 2 percentage points to revenue growth, alongside an increase in Nights and Experiences, particularly driven by high demand in Latin America [3][9] - However, softness in the U.S. market is anticipated to result in flat year-over-year growth in Average Daily Rate due to broader economic uncertainties [4] Currency and Market Dynamics - Easing foreign exchange headwinds, particularly the weakening of the U.S. dollar against the euro, is likely to have provided a slight positive impact on revenues, although ongoing currency pressures in Latin America may limit this effect [5] - The rollout of new features and updates, such as Guest Favorites, has led to over 350 million nights booked by May, positively impacting Q2 performance [6] Financial Metrics - Adjusted EBITDA is expected to have increased year over year, but its margin is projected to be flat to slightly down due to faster growth in marketing expenses related to new initiatives [7] - A modest positive impact on revenues is anticipated from the Summer Release event held on May 13 [7] Earnings Prediction Model - According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a moderate likelihood of an earnings beat [8][10]