Booking Holdings share price jumps on solid third quarter
Online travel titan Booking Holdings (previously known as Priceline Group) reported third quarter earnings this week that demonstrated a strong underlying business. While the company displayed solid fundamentals across the board, and logged a slight beat on revenue, it missed on earnings. However, positive guidance and a new record in how many nights in a hotel room the company was able to book in a quarter more than made up for this minor loss in what was, by any accounts, a busy quarter. Accordingly, investors sent the share price up.
Booking Holdings share price appreciated 4% after it posted earnings earlier this week
Source: Yahoo Finance
Speaking to the aforementioned broken record, Booking Holdings CEO, Glenn Fogel, said: “Booking Holdings delivered solid growth and operating results during our seasonally busy third quarter. Globally, our accommodation business reported a new milestone of more than 200 million room nights booked in a single quarter, which is up 13% over the same period last year.”
A quick look at the figures: Booking Holdings said that revenue rose by 9.5% year on year to $4.85 billion. That’s a shade above analysts’ expectations of third quarter revenues of $4.8 billion. It also delivered solid earnings growth, reporting a 7.5% rise from the year-ago quarter. That’s a positive result, but not positive enough: it works out at $37.02 per share, where analysts had hoped to see earnings of $38.37 per share. Gross travel bookings rose by 12% against the third quarter in the previous year, and merchant revenues was the stand out performer for the quarter, growing by an incredible 53%
Fogel was keen to paint a positive picture of the future, and said the company now expects revenue to grow by 13% to 16% in the fourth quarter of the year. He added: “As we look to the fourth quarter and beyond, we will continue to focus on making the right investments across our brands – in people, systems, and marketing – to continue to grow our business for the long term.”
Dominion holds Booking Holdings in its Global Trends Ecommerce Fund.
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