Booking Holdings Q3 Earnings Beat, Revenues Rise Y/Y

Booking Holdings Inc. (BKNG - Free Report) reported third-quarter 2019 non-GAAP earnings of $45.36 per share beating the Zacks Consensus Estimate by 1.1%. Further, the figure improved 20.1% from the year-ago quarter and 92.3% on a sequential basis.

Revenues of $5.04 billion improved 4% year over year and 30.9% from the previous quarter.

Solid momentum across the merchant, and advertising and other businesses drove the top line year over year. Additionally, robust accommodation business drove the booked room nights number, which came in at 223 million during the reported quarter, up 11% from the prior-year quarter.

However, revenues missed the Zacks Consensus Estimate of $5.07 billion.

Continued softness in agency business remained a headwind. Further, the company faced sluggishness in airline tickets unit, which was down 2.5% year over year during the reported quarter.

Nevertheless, Booking Holdings witnessed robust improvement in rental car days that rose 8.5% from the year-ago quarter.

Coming to price performance, Booking Holdings has returned 9.1% on a year-to-date basis, underperforming the industry’s rally of 26.8%.

Nevertheless, secular growth trend in the online travel booking market and growing usage of mobile by travelers for their travel planning remain tailwinds.

Moreover, the company’s strong position in the international markets, growth opportunities in the domestic market, solid momentum across the global accommodation space and proper execution of its marketing strategies are major positives.

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Top-Line in Detail

Booking Holdings generates bulk of revenues from the international markets, wherein the agency model is more popular. This is reflected in the merchant/agency split of revenues, which was 26.1/68.1% in the third quarter (previous quarter’s split was 24.9/67.7%).

Merchant revenues came in $1.3 billion, up 25% year over year. The company’s continued efforts toward improving of merchant business remains a positive.

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