Booking Holdings(US:BKNG) Zhi Tong Cai Jing·2025-10-28 23:25Core Insights - Booking Holdings reported better-than-expected booking volume outlook for the year, alleviating investor concerns about travel demand due to economic conditions and U.S. government shutdown [1][3] - The company's Q3 sales increased by 13% year-over-year to $9.01 billion, surpassing analyst expectations of $8.73 billion [1] - Adjusted earnings per share for Q3 were $99.50, a 19% increase from the previous year, exceeding the forecast of $95.85 [1] Financial Performance - In Q3, the number of room nights sold grew by 8% to 323 million, exceeding the analyst average expectation of 316 million [1] - Total bookings reached $49.7 billion, higher than the expected $47.9 billion [1] - The company anticipates a room night growth rate of approximately 7% for the year, slightly above the previous analyst forecast of 6.7% [1] Market Dynamics - Demand remained resilient across all major regions, with the U.S. benefiting from stronger outbound travel demand, although average daily rates (ADR) in the U.S. declined compared to last year [2] - CFO Ewout Steenbergen noted that the decline in ADR and shorter traveler stay durations suggest cautious consumer spending behavior in the U.S. [2] - Following the earnings report, Booking's stock rose approximately 3.4% in after-hours trading, while competitors Expedia and Airbnb also saw stock price increases ahead of their earnings announcements [2] Industry Outlook - Despite Booking's strong Q3 performance, the company provided a cautious outlook for Q4, expecting room night growth of 4% to 6%, below Wall Street's forecast of 5.7% [3] - Revenue growth for Q4 is projected at 10% to 12%, also lower than the market consensus of approximately 11.5% [3] - The travel industry shows a mixed financial outlook, with some airlines expecting strong year-end performance while others, like Southwest Airlines, warn of potential weakness due to the prolonged government shutdown [3]