Online travel agency Booking Holdings (NASDAQ:BKNG) delivered better-than-expected third-quarter results, reflecting robust travel demand. Q3 revenue increased by 29.4% to $6.05 billion, while adjusted earnings per share (EPS) surged nearly 41% to $53.03. Analysts were expecting revenue of $5.92 billion and EPS of $49.52.
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Booking Holdings stock rose 5.1% in the after-hours trading session on Wednesday. Shares are down 26% year-to-date amid macro challenges.
Coming to other key metrics, gross travel bookings increased 36% to $32.1 billion, and room nights booked grew 31.5% from the prior-year quarter to 240 million. It’s worth noting that, excluding the impact of currency fluctuations, gross travel bookings were up 52%, reflecting the significant impact of forex headwinds.
During the Q3 earnings call, CEO Glenn Fogel stated that the company is seeing resilience in travel demand, with room night growth “improving slightly” from September levels to an estimated rate of 12% for the month of October compared to October 2019.
Speaking about trends heading into 2023, Fogel stated that the company is experiencing strong growth in gross bookings on Booking.com for travel scheduled in the first quarter of next year. However, the CEO cautioned that “a high percentage of these bookings are cancellable.”
Is Booking Holdings a Buy?
On TipRanks, Booking Holdings stock earns a Moderate Buy consensus rating based on 13 Buys and seven Holds. The average BKNG price target of $2,310 implies 30% upside potential from current levels.
