What to expect from stock booking?

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Reserve credits (NASDAQ: BKNG), the world’s largest online travel agency that offers services ranging from accommodation to airfare to car rental, is expected to announce its fiscal second quarter results on Wednesday, August 3. marginally market expectations. BKNG reported record gross bookings in the first quarter compared to the pre-pandemic quarter of 2019. In fact, the company mentioned in its first quarter earnings call that global leisure travel trends continued to improve in second quarter, even with the current macroeconomic uncertainties, and looking forward to a busy summer travel season. All of this points to expectations of an upward recovery in stock prices which are down almost 20% this year.

Booking Holdings derives the majority of its revenue from the European market, which took a series of economic measures in response to Russia’s invasion of Ukraine. To add to this, inflation and staff shortages could further threaten growth in Europe and could also have a modest impact on BKNG’s business in the coming quarters.

Our forecast indicates that the valuation of Booking Holdings is $2021 per share, or 6% above the current market price. Watch our interactive dashboard analysis at Overview of Booking Holdings Earnings: What to expect in Q2? for more details.

(1) Expected revenue slightly above consensus estimates

Trefis estimates Booking Holdings’ revenue for the second quarter of 2022 at around $4.4 billion, a slight increase from the consensus estimate level. In the first quarter of 2022, the company’s gross travel bookings jumped nearly 130% year-on-year to $27.3 billion, up 7% from the first quarter of 2019. In addition, the number nights booked on the platform in the first quarter of 2022 doubled compared to the quarter of the previous year. Its total revenue soared 136% year-over-year to $2.7 billion – a massive rebound from the extremely difficult conditions of the prior quarter. In April, overnight stays were up 10% from 2019, with strength across all regions, with Asia the only market still below 2019 levels. Even so, bookings in Asia fell from -35 % in the first quarter of 2019 to a drop in the percentage of teenagers in April. The company’s gross bookings also rose more than 30% in April from 2019 levels. Management didn’t provide guidance for the second quarter but was confident there will be an operating profit .

For the whole of 2022, we expect Booking Holdings revenue grow 60% year-on-year to $17.5 billion.

(2) EPS likely to be slightly higher than consensus estimates

Booking Holdings’ Q2 2022 earnings per share are expected to be $18.05 according to Trefis’ analysis, slightly beating the consensus estimate of $17.56. The year-over-year revenue recovery translated into much better profitability, and the travel company reversed a loss a year ago with adjusted net income of $161 million, which indicates an almost complete recovery.

(3) Stock price estimate higher than current market price

Passing through our Valuation of reservation creditswith an estimated earnings per share of approximately $101.44 and a P/E multiple of 19.9x for fiscal 2022, this translates to a price of $2021, or 6% higher than the current price of the market.

It helps to see how your peers compare. BKNG Peers shows how Booking Holdings stock compares to its peers on important metrics. You will find other useful comparisons for companies in all sectors on Peer comparisons.

With inflation rising and the Fed raising interest rates, Booking Holdings has fallen 21% this year. Can it fall more? See how far can BKNG’s stock go comparing its decline to previous stock market crashes. here is a summary of the performance of all stocks during previous stock market crashes.

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