Booking Stock Rallies as Earnings Beat Estimates, Thanks to the Travel Recovery

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Kayak is a subsidiary of Booking Holdings.

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Tiffany Hagler-Geard/Bloomberg

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Booking Holdings stock rose in late trading after the online travel agency posted better-than-expected financial results, while making positive comments about the summer travel season.

The results provided vivid illustration of the sharp recovery in the travel industry from the deep declines suffered in earlier stages of the Covid-19 pandemic. For the quarter, Booking (ticker: BKNG) posted revenue of $4.3 billion, up 99% from a year ago, matching Street estimates. Gross travel bookings were $34.5 billion, up 57%. Room nights booked rose 56%.

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Booking shares jumped 4.5 to $2,055.

Non-GAAP earnings were $19.08 a share, ahead of the Street consensus at $17.56. Non-GAAP net income was $776 million, versus a loss of $105 million in the year-ago quarter. Adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization, was $1.1 billion, up from $48 million in the year-earlier period. Under generally accepted accounting principles, the company earned $857 million, or $21.07 a share, compared with a year-ago quarter loss of $167 million.

CEO Glenn Fogel said in a statement that Booking “reached another milestone” in recovering from the pandemic, as second-quarter room nights booked surpassed 2019 levels for the first time. He noted that gross bookings were up 38% from the 2019 second quarter, or 48% adjusting for currency. “Looking forward, we expect record Q3 revenue and are very busy working with our customers and partners to help enable an extremely busy summer travel season,” he said.

Write to Eric J. Savitz at [email protected]

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Credit: www.marketwatch.com /

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