Booking Holdings Anticipates Strong Earnings Growth

Booking Holdings is set to report a profit of $35.71 per share, reflecting an 11.6% increase from last year. Analysts anticipate solid growth in EPS, bolstered by a robust demand for travel services, which could positively influence investor sentiment.

Date: 28-01-2025

AI Rating: 7

Analysis of Earnings Per Share (EPS)
Booking Holdings Inc. is expected to report an EPS of $35.71 for the upcoming quarter, which indicates a solid growth of 11.6% compared to $32 in the same quarter last year. This positive trend is further evidenced by the company's adjusted EPS of $83.89 in the last quarter, which surpassed consensus estimates by 7.6%. The anticipated EPS for fiscal 2024 is $181.68, showcasing a remarkable increase of 19.4% from the previous year and a projection of $209.31 in fiscal 2025 indicates continued positive momentum.

Revenue Growth
In its latest report, Booking Holdings demonstrated a year-over-year revenue increase of 8.9%, reaching $7.99 billion, which was above estimates by 4.8%. This growth is indicative of the company's strong position within the travel industry, particularly showcasing a robust demand for its services despite market challenges.

Profit Margins
The report highlights that while EBITDA rose to $3.67 billion with an improved margin of 45.8% from 44.7% year-over-year, there were declines in the operating margin, which fell to 39.8% from 42.3%. Similarly, the free cash flow margin saw a sharp decline, decreasing to 28.7% from 40.6%. Such a decline in margins can imply potential cost pressures or challenges in maintaining profitability levels moving forward.

Outlook
Despite these pressures on operating and free cash flow margins, the overall demand for Booking Holdings' services remains strong, as evident by the 23 million increase in room nights booked. Analysts maintain a cautiously optimistic outlook on the company's stock, with a consensus rating of “Moderate Buy.” The average target price of $5,294.26 suggests an upside of 11.1%, indicating a positive sentiment about future performance among investors.

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