Booking Holdings Reports Strong Q4 Revenue Growth, Beating Analyst Expectations
Booking Holdings, the online travel company based in Norwalk, Connecticut, has announced fourth-quarter earnings that surpassed expectations, indicating robust demand for travel compared to the previous year. The company reported a profit of $222 million, or $6.28 per share, for the period ending December 31, in contrast to $1.24 billion, or $31.92 per share, during the same period in the prior year.
However, when excluding certain one-time items, adjusted per-share earnings were $32, outpacing the $29.68 forecasted by analysts. Furthermore, revenue grew by 18% to $4.78 billion, beating analysts’ projections of $4.71 billion. Gross travel bookings also increased by 16% to $31.7 billion, surpassing estimates of $31.1 billion.
Despite the positive results, Booking Holdings did incur losses related to a pension fund issue in the Netherlands and a draft decision by the Spanish competition authority. These losses impacted profitability and were excluded from the adjusted results.
Booking Holdings’ impressive performance in Q4 suggests that the travel industry is experiencing a solid rebound. As more countries lift travel restrictions and vaccinations against COVID-19 roll out, consumers are becoming more comfortable with planning trips and making bookings.
Analyst comment
Positive news. Short-term: Booking Holdings’ strong Q4 results indicate a robust travel demand and surpass analysts’ expectations. The market is likely to see an increase in investor confidence and potential stock price growth.
