Booking (BKNG) To Report Earnings Tomorrow: Here Is What To Expect

Booking (BKNG) To Report Earnings Tomorrow: Here Is What To Expect

Online travel agency Booking Holdings (NASDAQ:BKNG) will be announcing earnings results tomorrow afternoon. Here's what to look for.

Booking beat analysts' revenue expectations by 3.7% last quarter, reporting revenues of $4.42 billion, up 16.9% year on year. It was a decent quarter for the company, with revenue and adjusted EBITDA exceeding expectations. It reported 297 million nights booked, up 8.4% year on year.

Is Booking a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Booking's revenue to grow 5.7% year on year to $5.77 billion, slowing from the 27.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $38.70 per share.

Booking Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Booking has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.

Looking at Booking's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Pinterest delivered year-on-year revenue growth of 20.6%, meeting analysts' expectations, and Netflix reported revenues up 16.8%, in line with consensus estimates. Netflix traded down 1.5% following the results.

Read our full analysis of Pinterest's results here and Netflix's results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Booking is down 4.9% during the same time and is heading into earnings with an average analyst price target of $4,191.1 (compared to the current share price of $3,726).

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