Booking Holdings’ Earnings To Surge Backed By Increased Gross Bookings

Booking Holdings (NASDAQ: BKNG) is slated to report its June quarter financial results after the market closes on 8th August 2018. The market expects the company to post a strong improvement in its results driven by increased direct traffic and customer loyalty. The company’s efforts to widen its offerings at competitive prices, an easy-to-use user interface, and strong customer service is likely to drive its value in the coming quarters. Further, the company’s plans to expand its properties on its online accommodation booking website, and improve its technological capabilities, is expected to boost its growth in the near term.

We have a price estimate of $2,485 for Booking Holdings’ stock which is 16% above its current price. View our interactive dashboard – Booking Holdings’ Outlook For 2018 and modify the different drivers to visualize the impact on the company valuation.

Key Trends To Watch For In 2Q’18

• Over the last few quarters, Booking Holdings has managed to increase its gross bookings from the reservation services across room nights, rental and car days on its various sites such as Agoda, Priceline, and Rentalcars.com. We expect to see further growth in the gross bookings in the agency as well as merchant segment that will boost its revenue for the quarter.
• Further, the company is likely to witness strong take rates in its agency and merchant division which will complement its top-line growth. Also, its advertising revenues will grow at a decent rate primarily due to advertising on Kayak and OpenTable.

• At the end of the March quarter, the company had a total of 28.2 million reported listings. The company remains focused on bringing more alternative accommodation properties on to its platform and increase its direct traffic and customer loyalty by widening its selection, offering competitive prices and availability, an easy to use interface, and high level of customer service.
• Booking Holdings expects its 2Q’18 adjusted EBITDA to be in the range of $1.085-$1.125 billion, driven by solid revenue growth and efficiencies realized in its marketing channels. Further, the company forecasts its Non-GAAP EPS to be between $16.35-$17.00 for the quarter, which at the midpoint is up about 10% compared to the prior year.
• Further, the company plans to implement various measurement tools and technologies to further its expansion in the untapped markets and geographies, which will drive its value in the long term.

Do not agree with our forecast? Create your own price forecast for Booking Holdings by changing the base inputs (blue dots) on our interactive dashboard.