Airbnb to Report Q4 Earnings: What's in the Cards?

Image: Bigstock

Airbnb (ABNB - Free Report) is set to report fourth-quarter 2020 results on Feb 25.

On Dec 14, 2020, Airbnb completed its initial public offering. Hence, the fourth-quarter results will be its first quarterly earnings report since becoming a publicly-traded company.

The Zacks Consensus Estimate for revenues currently stands at $735.1 million.

For the quarter, the consensus mark for loss has improved by a penny to $9.18 per share over the past 30 days.

Airbnb dominates the home-sharing platform in the travel market space. The company estimates serviceable addressable market to be $1.5 trillion, comprising $1.2 trillion for short-term stays and $239 billion for experiences.

Airbnb, Inc. Price and Consensus

Airbnb, Inc. price-consensus-chart | Airbnb, Inc. Quote

Airbnb’s hosts span more than 220 countries and regions, and approximately 100,000 cities. Markedly, almost 55% of the company’s hosts are women.

As of Sept 30, 2020, Airbnb had more than 4 million hosts around the world, with 86% of the same located outside of the United States.

The company’s superior brand value and strong consumer awareness are expected to have driven top-line growth in the fourth quarter. Moreover, its strong host network is likely to have aided growth in the to-be-reported quarter.

However, the coronavirus outbreak severely impacted Airbnb’s business and is also expected to have hurt the company’s top-line growth in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Airbnb has an Earnings ESP of -5.17% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.