In This Article:
As you might know, Booking Holdings Inc. (NASDAQ:BKNG) recently reported its annual numbers. Revenues of US$24b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$173, missing estimates by 2.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Booking Holdings after the latest results.
Check out our latest analysis for Booking Holdings
Taking into account the latest results, the current consensus from Booking Holdings' 33 analysts is for revenues of US$25.3b in 2025. This would reflect a modest 6.6% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to US$201. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$25.3b and earnings per share (EPS) of US$202 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$5,557. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Booking Holdings at US$6,500 per share, while the most bearish prices it at US$3,996. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Booking Holdings shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Booking Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.6% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Booking Holdings.