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Can BKNG's Solid Q4 Earnings Beat and Robust View Push the Stock Higher?

In This Article:

Booking Holdings BKNG reported fourth-quarter 2024 earnings of $41.55 per share, beating the Zacks Consensus Estimate by 16.58%. The figure increased 29.8% year over year.

BKNG’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.98%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues of $5.47 billion beat the Zacks Consensus Estimate by 5.50% and increased 14.4% year over year on a reported basis and 15% on a constant currency (cc) basis. The growth was driven by high demand and increased travel bookings.

Booking Holdings Inc. Price, Consensus and EPS Surprise

Booking Holdings Inc. Price, Consensus and EPS Surprise
Booking Holdings Inc. Price, Consensus and EPS Surprise

Booking Holdings Inc. price-consensus-eps-surprise-chart | Booking Holdings Inc. Quote

In the fourth quarter of 2024, BKNG also benefited from its investments in AI-driven tools like AI Trip Planner and personalized recommendations, which enhanced the user experience and streamlined operations.

Booking Holdings appreciated 33.2% in the trailing six-month period, outperforming the Zacks Internet Commerce industry’s return of 28.2% and the broader Zacks Retail-Wholesale sector’s 9.8% gain.

Steady travel demand is expected to boost Room Night Growth, driving BKNG shares in the near term.

BKNG’s Top Line in Detail

Merchant revenues were $3.33 billion (61% of the total revenues), up 35.1% on a year-over-year basis.

Agency revenues were $1.86 billion (34.1% of the total revenues), down 9.9% year over year.

Advertising & Other revenues were $271 million (5% of the total revenues), up 9.7% year over year.

Booking Holdings saw 12.1% growth in rental cars on a year-over-year basis and 52.3% growth in the airline tickets unit in the reported quarter.

Booked room night numbers were 261 million in the fourth quarter, up 13% year over year.

Booking Holdings’ Bookings Up Y/Y on Strong Merchant Growth

The company’s overall gross bookings totaled $37.2 billion, up 17.3% on a reported basis and 18% on a cc basis year over year. 

Total gross bookings beat the Zacks Consensus Estimate by 8.34%.

Merchant bookings were $24.2 billion, up 31.7% year over year. The figure topped the consensus mark by 8.63%.

Agency bookings were $12.9 billion, down 2.7% year over year. However, the figure beat the consensus mark by 6.5%.

Operating Results

Adjusted EBITDA in the reported quarter was $1.8 billion, up 26.2% year over year. Adjusted EBITDA margin was 33.8%, which expanded 320 basis points (bps) year over year.

GAAP operating expenses were $3.74 billion, down 10.4% on a year-over-year basis. As a percentage of revenues, operating expenses were 68.4%, a decrease from 87.3% in the previous year.

Adjusted Fixed Operating expenses increased 9% year over year to $1.25 billion.