Booking Holdings (BKNG) to release third quarter results: what’s in store?

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Reservation Holdings Inc. BKNG is expected to release its third quarter 2021 results on November 3.

For the third quarter, Zacks’ consensus estimate for revenue is set at $ 4.16 billion, which suggests growth of 57.4% from the figure released a year ago.

Moreover, the consensus mark for earnings stands at $ 31.56 per share, indicating a jump of 157.2% from the last year’s quarter.

Net income has beaten Zacks’ consensus estimate in three of the past four quarters and missed the same once, with an average surprise of 24.6%.

Booking Holdings Inc. Pricing and BPA Surprise

Booking Holdings Inc. price-eps-surprise | Quote from Booking Holdings Inc.

Key factors to note

In the third quarter, Booking Holdings likely benefited from the ongoing vaccination campaign and the easing of travel restrictions around the world.

Growth in domestic and international bookings should have improved quarterly performance.

The growing initiatives to strengthen the Booking.com brand and the Genius loyalty program could have been positive. In addition, the growing investment in the app to increase customer engagement likely continued to contribute significantly to the revenue for the quarter to be released.

Increased efforts to strengthen the hosting business in the US and UK should have continued to help the company’s quarterly performance.

Additionally, customer retention, increased marketing strategies to acquire more customers, and growing investments to support payments and connected travel are expected to remain positive winds.

During the quarter, its brand OpenTable worked with CLEAR to help diners access restaurants when they show proof of vaccination with the latter’s digital vaccination card.

Additionally, its Agoda subsidiary introduced a landing page, www.agoda.com/PhuketSandbox, following the reopening of tourism in Phuket to fully vaccinated international travelers.

These initiatives should have supported its performance during the quarter under review.

The company’s growing focus on maintaining a strong liquidity position should have helped it weather the coronavirus-induced crisis.

However, uncertainties related to the current pandemic are likely to affect the next quarterly results. The increase in COVID-19 cases and new variants in some countries are expected to remain concerns for the company.

What our model says

Our proven model predicts higher profits for Booking Holdings this time around. The combination of a positive ESP on earnings and a Zacks rank of # 1 (strong buy), 2 (buy) or 3 (hold) increases the odds of beating the winnings. You can discover the best stocks to buy or sell before they are flagged with our ESP Income Filter.

He currently has an ESP of + 33.10% earnings and a rank 3 of Zacks.

Other actions to consider

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NetApp, Inc. NTAP currently has an ESP of + 3.70% and a Zacks rank of 2. You can see The full list of today’s Zacks # 1 Rank stocks here.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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