Booking Holdings Inc. (BKNG) reported a 26% jump in earnings for the first quarter helped by higher unrealized gains on marketable equity securities. However, the results missed analysts’ expectations. Also, the company guided second-quarter earnings and revenue below the consensus estimates.
Net income increased 26% to $765 million and earnings jumped 37% to $16.85 per share. Adjusted earnings decreased by 7% to $11.17 per share. Total revenues declined by 3% to $2.8 billion. Gross travel bookings inched up 2% to $25.4 billion.
Looking ahead into the second quarter of 2019, the company expects revenue growth in the range of 5% to 7%. Earnings are anticipated to be in the range of $21.10 to $21.55 per share and adjusted earnings are predicted to be in the range of $22.15 to $22.60 per share. Adjusted EBITDA is projected to be $1.295 billion to $1.325 billion.
For the second quarter, the company sees room nights booked growth in the range 6% to 8% and total gross travel bookings in the range of down 1% to up 1%.
For the first quarter, gross travel bookings rose by 1.6% year-over-year to $25.41 billion. The results were primarily driven by a 29% growth in Merchant during the quarter. Meanwhile, the agency segment fell 4.4% to $19.68 billion. Room nights units sold increased by 10.3% and Airline tickets rose by 4.4%, while rental car days declined by 1.3%.
In the first week of May, rival Expedia (EXPE) reported a narrower loss for the first quarter supported by a 4% rise in revenues. The positive top-line performance reflects contributions from Expedia Partner Solutions and Brand Expedia. At Vibo, Expedia’s short-term rental business, growth slowed for the second straight month.
Shares of Booking Holdings ended Thursday’s regular session down 0.89% at $1,736.03 on the Nasdaq. Following the earnings release, the stock inched up over 4% in the after-market session.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,