Booking Holdings beats the Street’s predictions in second quarter
Online travel giant Booking Holdings reported earnings for its second quarter last week, handily beating the Street’s predictions on the top- and bottom-lines. The company, which includes brands like Booking.com, Priceline, and Kayak in its portfolio, was eager to stress that short-term geopolitical concerns shouldn’t dominate decision making when it comes to executing long-term business strategy. Shares in the company’s stock rose on the back of the strong results posted.
Booking Holdings’ share price has risen by 7% over the past week
Source: Yahoo Finance
Here are the financials: for the second quarter, Booking Holdings saw an 8% rise in revenue against the comparable quarter in the previous year. The top-line came in at $3.85 billion for the three-month period – a respectable beat against analysts’ predictions of $3.75 billion. Regarding the bottom-line, profit rose by more-than a million dollars (from the year-ago quarter) to $979 million, which works out at $22.44 per share. Once more, a fairly respectable beat against consensus estimates of $21.65 per share. Booking Holdings also predicted a more positive guidance range for next quarter’s earnings than analysts had expected.
The company’s president and CEO, Glenn Fogel, was eager to talk about business in a tumultuous world. He said that Booking had been monitoring Brexit closely, aware of the possibility that a weaker pound could impact Brits’ spending abroad – but that, thus far, the company had not seen cause for concern: “generally, our experiences with Brexit concerns have been short term in nature, and they rebound quickly.”
He also warned about adopting an overly cautious stance towards China. He said that Booking was aware of the impact of trade disputes with the US on the China, Hong Kong riots, and indications from central banks that the macroeconomic environment may be weakening. Despite this, the Chinese growth story remains the same. He told listeners: “In the long run, there’s going to be a lot more Chinese travellers outbound, so it’s important that one doesn’t just pull back because of any sort of short-term blip.”
Dominion holds Booking Holdings in its Global Trends Ecommerce Fund.
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