|
Related Topics
|
Category: Stock Market and Booking Holdings
Date: 6 November 2020 Stock Price of Booking Holdings (BKNG): $1768.31 We take a look at the 3rd quarter earnings release of their 2020 fiscal year of Booking Holdings, a provider of online travel and related services and owner of brands such as Booking.com and KAYAK. The stock of Booking Holdings has been severely affected by Coronavirus initially but has since recovered strongly. The group reported net income of $801 million for the quarter.
|
We were pleased to see positive third quarter results, which we believe benefited greatly from some lifting of government lock-downs and the release of pent-up demand created by the almost complete cessation of travel during parts of the second quarter,” said Glenn Fogel, Chief Executive Officer of Booking Holdings."
About Booking Holdings
Booking Holdings (BKNG) is the world leader in online travel and related services, provided to customers and partners in over 230 countries and territories through six primary brands - Booking.com, KAYAK, priceline, agoda.com, Rentalcars.com and OpenTable. The mission of Booking Holdings is to help people experience the world.
Overview of Booking Holdings' 3rd quarter 2020 earnings report
The data below refers to the most recent quarter unless specified otherwise
- Total Revenues: $2.640 billion (down from $5.040 billion from the same quarter of the previous year)
- Revenue decreased by -47.6% over the last 12 months
- Total operating expenses: $2.325 billion (down from $2.670 billion for the same quarter of the previous year)
- Total operating expenses decreased by -12.9% over the last 12 months
- Some margin pressure was experienced by Booking Holdings with their revenues declining at a faster rate than their expenses
- Net income: $801 million (down from $1.950 billion for the same quarter of the previous year)
- Diluted earnings per share: $19.49 (down from $45.54 for the same quarter of the previous year)
- PE ratio of Booking Holdings: 23.2
- Diluted weighted-average shares outstanding: 41.081 million (down from 42.831 million for the same quarter of the previous year)
- Cash and cash equivalents: $11.197 billion
- Cash and cash equivalents per share: $272.56
- Cash and cash equivalents makes up 15.4% of Booking Holdings market capital
- Cash and cash equivalents makes up 50.6% of Booking Holdings total assets
- Goodwill in Booking Holdings: $1.865 billion
- Goodwill per share: $45.39
- Goodwill makes up 8.4% of Booking Holdings total assets
- Stockholders equity in Booking Holding: $4.913 billion
- Stockholders equity per share in Booking Holdings: $119.60
- Booking Holdings is trading at 14.8 times its stockholders equity per share which is well outside the expected range of between 2 and 4 times that most firms tend to trade at.
- For perspective the average price to book value of firms in the S&P 500 is 3.8.
Booking Holdings' management commentary on their 3rd quarter 2020 earnings report
NORWALK, CT – November 5, 2020. . . Booking Holdings Inc. (NASDAQ: BKNG) today reported its 3rd quarter 2020 financial results. Third quarter gross travel bookings for Booking Holdings Inc. (the "Company," "Booking Holdings," "we," "our" or "us"), which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were $13.4 billion, a decrease of 47% over a year ago (approximately a 48% decrease on a constant-currency basis). Room nights booked in the 3 rd quarter decreased 43% over a year ago. The Company's results for the three and nine months ended September 30, 2020 have been significantly and negatively impacted due to the COVID-19 pandemic and the resulting economic conditions and government orders
"We were pleased to see positive third quarter results, which we believe benefited greatly from some lifting of government lock-downs and the release of pent-up demand created by the almost complete cessation of travel during parts of the second quarter,” said Glenn Fogel, Chief Executive Officer of Booking Holdings. “However,” Mr. Fogel continued, “COVID-19 case counts are now rising steeply in many parts of the world with corresponding increases in lock-downs and re-imposed travel restrictions that will continue to impact travel in the near-term. Nevertheless, we remain confident in a long-term recovery and will continue to invest in our company to ensure that when the pandemic recedes and travel demand returns fully, we are prepared to take advantage of it."
Booking Holdings (NASDAQ: BKNG) stock price history over the last 5 years
The image below, obtained from Google, shows the stock price history of Booking Holdings (NASDAQ: BKNG) over the last 5 years. And its been a pretty good time for Booking Holdings stockholders. 5 years ago the stock of Booking Holdings was trading at around $1204 a stock and its currently trading at $1450.00. That's a healthy return of 21.9% provided to Booking Holdings stockholders over the last 5 years.
Booking Holdings stock is trading at very closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of BKNG stock is positive
Booking Holdings stock is trading at very closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of BKNG stock is positive
Recent coverage of Booking Holdings
The extract below shows recent coverage of Booking Holdings as obtained from Investing.com
Investing.com - Booking (NASDAQ:BKNG) reported on Thursday third quarter earnings that missed analysts' forecasts and revenue that topped expectations.
Booking announced earnings per share of $12.27 on revenue of $2.64B. Analysts polled by Investing.com anticipated EPS of $14.48 on revenue of $2.56B.
Booking shares are down 13% from the beginning of the year, still down 15.54% from its 52 week high of $2,094.00 set on January 10. They are under-performing the Nasdaq 100 which is up 38.3% from the start of the year.
Booking shares gained 1.78% in after-hours trade following the report.
Booking follows other major Services sector earnings this month
Booking's report follows an earnings beat by Amazon.com on October 29, who reported EPS of $12.37 on revenue of $96.15B, compared to forecasts EPS of $7.41 on revenue of $92.78B.
Alibaba ADR had beat expectations on Thursday with second quarter EPS of $17.97 on revenue of $155.06B, compared to forecast for EPS of $14.18 on revenue of $155.88B.
Read the full article here
Investing.com - Booking (NASDAQ:BKNG) reported on Thursday third quarter earnings that missed analysts' forecasts and revenue that topped expectations.
Booking announced earnings per share of $12.27 on revenue of $2.64B. Analysts polled by Investing.com anticipated EPS of $14.48 on revenue of $2.56B.
Booking shares are down 13% from the beginning of the year, still down 15.54% from its 52 week high of $2,094.00 set on January 10. They are under-performing the Nasdaq 100 which is up 38.3% from the start of the year.
Booking shares gained 1.78% in after-hours trade following the report.
Booking follows other major Services sector earnings this month
Booking's report follows an earnings beat by Amazon.com on October 29, who reported EPS of $12.37 on revenue of $96.15B, compared to forecasts EPS of $7.41 on revenue of $92.78B.
Alibaba ADR had beat expectations on Thursday with second quarter EPS of $17.97 on revenue of $155.06B, compared to forecast for EPS of $14.18 on revenue of $155.88B.
Read the full article here
Booking Holdings (NASDAQ: BKNG) latest stock valuation
So based on Booking Holdings latest earnings report what do we value Booking Holdings stock at? Based on their earnings reported our valuation model provides a target price (full value price) for Booking Holdings at $1520.70 per stock (up from our 1st quarter 2020 earnings report valuation of Booking Holdings)
We therefore believe that the stock of Booking Holdings stock is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $1520.70 A good entry price into Booking Holdings would therefore be at $1368.60 or below.
We expect the stock of Booking Holdings to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months as we do believe the group's stock is overvalued at its current price and the full impact of Coronavirus has yet to be felt by the group.
We therefore believe that the stock of Booking Holdings stock is overvalued. We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $1520.70 A good entry price into Booking Holdings would therefore be at $1368.60 or below.
We expect the stock of Booking Holdings to pull back from current levels to levels closer to our target price (full value price) in coming weeks and months as we do believe the group's stock is overvalued at its current price and the full impact of Coronavirus has yet to be felt by the group.
Next earnings release of Booking Holdings
It is expected that Booking Holdings will release their 4th quarter 2020 earnings release in early February 2020