Booking Holdings (BKNG) earnings release for the 3rd quarter of their 2021 fiscal year
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Category: Stock Market and Booking Holdings (BKNG)
Date: 4 November 2021 Stock Price of Booking Holdings (BKNG): $2 435.33 Market Capital of Booking Holdings (BKNG): $99.9 billion We take a look at the 3rd quarter earnings release of their 2021 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 revenues of $4.67 billion and net income of $769 million
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We are pleased to report another quarter of sequential improvement in room night trends, which was primarily driven by better results in Europe. Revenue in our seasonally strongest third quarter was $4.7 billion, which was more than double the amount of revenue we recognized in the second quarter of 2021 - 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.
Booking.com, one of Booking Holdings main brands
Overview of Booking Holdings' 3rd quarter 2021 earnings report
- Booking Holdings' total revenues for the 3rd quarter of 2021 were $4.7 billion, a 77% increase from the prior year quarter (approximately a 76% increase on a constant-currency basis).
- Net income for the 3rd quarter of 2021 was $769 million, a 4% decrease from the prior year quarter.
- The results for the 3rd quarter of 2021 include net losses of $1.0 billion on equity securities with readily determinable fair values while the results for the 3rd quarter of 2020 include net gains of $730 million on equity securities with readily determinable fair values.
- Additionally, the Company recorded an impairment charge of $573 million related to OpenTable and KAYAK goodwill in the 3rd quarter of 2020.
- Net income in the 3rd quarter of 2021 was $18.60 per diluted common share, a 5% decrease from the prior year quarter
Booking Holdings' management commentary on their 3rd quarter 2021 earnings report
NORWALK, CT – November 3, 2021. . . Booking Holdings Inc. (NASDAQ: BKNG) today reported its 3rd quarter 2021 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 $23.7 billion, an increase of 77% from the prior year quarter (approximately a 75% increase on a constant-currency basis). Room nights booked in the 3rd quarter increased 44% from the prior year quarter. The Company's results for the three and nine months ended September 30, 2021 and 2020 have been materially and negatively impacted due to the COVID-19 pandemic and the resulting economic conditions and government restrictions.
"We are pleased to report another quarter of sequential improvement in room night trends, which was primarily driven by better results in Europe. Revenue in our seasonally strongest third quarter was $4.7 billion, which was more than double the amount of revenue we recognized in the second quarter of 2021," said Glenn Fogel, Chief Executive Officer of Booking Holdings. "We are encouraged by the signs of recovery we saw in many parts of the world in the third quarter, and our teams are working hard to continue to strengthen our company’s position and execute against our strategic priorities."
Booking Holdings (BKNG) stock price history over the last 5 years
The image below shows the stock price history of Booking Holdings (KNG) over the last 5 years. And its been a pretty good time for Booking Holdings stockholders. Especially considering the devastating impact Covid019 had on the travel and tourism industry. Over the last 5 years the stock of Booking Holdings returned 61.9%
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
Booking Holdings (NASDAQ: BKNG) stock price history over the last 5 years
Booking Holdings (BKNG) vs Trivago (TRVG) stock comparison over last 5 years
The image below shows the stock price performance of Booking Holdings (BKNG) and Trivago (TRVG) over the last 5 years. Both firms are active in the holiday accomodation booking and reservation space. The summary below shows the stock price performance of these two firms.
Its clear that Booking has easily outperformed Trivago over the last 5 years
- Booking Holdings: 61.9%
- Trivago: -78.9%
Its clear that Booking has easily outperformed Trivago over the last 5 years
Booking Holdings (BKNG) vs Trivago (TRVG) stock comparison over last 5 years
Comparison between Booking (BKNG) and Trivago (TRVG) using Genuine Impact App
The screenshot below shows the comparison between Booking (BKNG) and Trivago (TRVG) using the Genuine Impact App. Genuine Impact ranks and scores over 7000 stocks on a various metrics and ranks them accordingly compared to the rest of the stocks in their universe of stocks they look at. Based on their rankings, based on overall quality Booking (BKNG) comes in in 3820 place while Trivago lags far behind Booking in 4662 place.
Comparison between Booking (BKNG) and Trivago (TRVG) using Genuine Impact App
Booking Holdings (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 $1590.30 per stock.
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 $1590.30 A good entry price into Booking Holdings would therefore be at $1431.30 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 $1590.30 A good entry price into Booking Holdings would therefore be at $1431.30 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.
OpenTable one of Booking Holdings brands
Next earnings release of Booking Holdings
It is expected that Booking Holdings will release their 4th quarter 2021 earnings release in early February 2021