The chart below shows how BKNG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BKNG sees a -0.55% change in stock price 10 days leading up to the earnings, and a +4.89% change 10 days following the report. On the earnings day itself, the stock moves by -0.28%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Beat: Booking Holdings Inc. reported an EPS of $41.55, exceeding expectations of $35.82, indicating strong financial performance.
Room Nights Growth Surge: Fourth quarter room nights grew 13% year-over-year, surpassing prior expectations and demonstrating robust demand across all major regions.
Gross Bookings Surge: Gross bookings increased by 17% in the fourth quarter, driven by strong room night growth and higher flight bookings, reflecting a healthy travel market.
Fourth Quarter Revenue Surge: Revenue for the fourth quarter reached $5.5 billion, growing 14% year-over-year and exceeding guidance, showcasing effective revenue generation strategies.
Q4 Adjusted EBITDA Growth: Adjusted EBITDA for the fourth quarter was $1.8 billion, up 26% year-over-year, indicating strong operational efficiency and profitability.
Travel Sector Growth: For the full year 2024, gross bookings reached $166 billion, a 10% increase from 2023, highlighting sustained growth in the travel sector.
Adjusted EPS Increase: The company achieved a 23% year-over-year increase in adjusted EPS for the full year, supported by a reduction in average share count, reflecting effective capital management.
Loyalty Program Growth: The Genius loyalty program saw growth, with over 30% of active travelers in higher tiers, contributing to increased direct bookings and customer loyalty.
Alternative Accommodations Growth: Alternative accommodations room night growth accelerated to 19% in the fourth quarter, indicating successful expansion in this segment.
Share Repurchase and Dividend Increase: The company announced a new $20 billion share repurchase authorization and a 10% increase in quarterly cash dividends, reflecting confidence in future earnings and cash flow generation.
Negative
Workforce Transformation Challenges: The company announced a transformation program that includes workforce reductions, which may lead to uncertainty and potential morale issues among employees.
Revenue Percentage Decline: Despite strong financial results, the revenue as a percentage of gross bookings was lower than expected due to a higher mix of flight bookings and timing impacts.
Increased Marketing Expenses: Marketing expenses increased by 10% year-over-year, which could indicate rising competition and the need for more aggressive marketing strategies.
First Quarter Revenue Outlook: The company expects first quarter revenue growth to be between 2% and 4%, which is significantly lower than the growth rates achieved in 2024, indicating potential challenges ahead.
Foreign Exchange Impact on Growth: The anticipated impact of foreign exchange changes is expected to negatively affect reported growth rates by about 3 percentage points for gross bookings and revenue, which could dampen overall performance.
Easter Calendar Impact: The company is facing a headwind from the calendar shift of Easter, which is expected to negatively impact revenue and profitability growth in the first quarter.
Transformation Program Costs vs Savings: The transformation program is expected to incur costs similar to the expected annual run rate savings, indicating a potential short-term financial burden despite long-term savings.
Booking Holdings Inc. (NASDAQ:BKNG) Q4 2024 Earnings Call Transcript
BKNG.O
-2.31%