Airbnb (ABNB) is scheduled to announce its second-quarter earnings after the market closes on August 6, Tuesday. Wall Street analysts expect the company to post revenue of $2.74 billion in Q2, up 10.5% from $2.48 billion in the prior-year quarter. Meanwhile, ABNB is expected to report earnings of $0.91 per share, down from $0.98 in the year-ago quarter.
In terms of ABNB’s earnings surprise history, we see that the company exceeded the consensus estimates in 11 out of the previous 12 quarters.
Encouraging Website Traffic Trend
Investors can use TipRanks’ Website Traffic Tool to gain insights into a company’s upcoming earnings report. The tool offers information on how a company’s website domain performed over a specific time frame.
According to TipRanks’ Website Traffic tool, visits to airbnb.com grew by 53.89% year-over-year in Q2. This increase in visits suggests that demand for the company’s offerings remained strong during the quarter.
It is worth highlighting that according to TipRanks’ Bulls Say, Bears Say tool, bullish analysts expect ABNB’s site traffic and receipt transaction volume to have picked up pace in Q2. Also, they are optimistic about the company’s focus on expanding revenue opportunities.
Nevertheless, bearish analysts expect a macroeconomic slowdown and intense competition to have negatively impacted bookings in the to-be-reported quarter.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 9.51% move in either direction.
Is Airbnb a Buy, Sell, or Hold?
On TipRanks, ABNB has a Hold consensus rating based on nine Buy, 21 Hold, and five Sell ratings. The analysts’ average price target on Airbnb stock of $153.34 implies 19.58% upside potential. Shares of the company have declined 11.4% over the past six months.
Bottom Line
Analysts anticipate that the company will see revenue growth of approximately 11% in Q2. Also, TipRanks’ website tool indicates that higher traffic could have contributed to ABNB’s top-line performance in Q2. Nevertheless, analysts are sidelined about Airbnb due to intense competition among travel service providers.
