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Category: Stock Market and Booking Holdings
Date: 9 November 2019 Stock Price: $1879.19 We take a look at the 3rd quarter earnings release of their 2019 fiscal year of Booking Holdings, a provider of online travel and related services and owner of brands such as Booking.com and KAYAK.
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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 2019 earnings report
The data below refers to the most recent quarter unless specified otherwise
- Total Revenues: $5.04 billion (up from $4.894 billion from the same quarter of the previous year)
- Revenue increased by 11.5% over the last 12 months
- Total operating expenses: $2.670 billion (up from $2.602 billion for the same quarter of the previous year)
- Total operating expenses increased by 2.7% over the last 12 months
- Net income: $1.950 billion (up from $1.767 billion for the same quarter of the previous year)
- Diluted earnings per share: $45.54 (up from $37.02 for the same quarter of the previous year)
- PE ratio of Booking Holdings: 16.7
- Diluted weighted-average shares outstanding: 42.831 million (down from 47.751 million for the same quarter of the previous year)
- Cash and cash equivalents: $6.466 billion
- Cash and cash equivalents per share: $150.9
- Cash and cash equivalents makes up 8.03% of Booking Holdings market capital
- Cash and cash equivalents makes up 30.1% of Booking Holdings total assets
- Goodwill in Booking Holdings: $2.885 billion
- Goodwill per share: $67.35
- Goodwill makes up 13.4% of Booking Holdings total assets
- Stockholders equity in Booking Holding: $5.951 billion
- Stockholders equity per share in Booking Holdings: $131.94
- Booking Holdings is trading at 14.23 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.
- Cash generated from operations (for 9 months): $3.788 billion
- Cash generated from operations per share (for 9 months): $88.44
Booking Holdings' management commentary on their 3rd quarter 2019 earnings and guidance
NORWALK, CT – November 7, 2019. . . Booking Holdings Inc. (NASDAQ: BKNG) today reported its 3rd quarter 2019 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 $25.3 billion, an increase of 4% over a year ago (approximately 7% on a constant-currency basis). Room nights booked in the 3rd quarter increased 11% over a year ago
"Booking Holdings executed well in our busiest quarter of the year as we booked 223 million room nights, which is up 11% year-over-year" said Glenn Fogel, Chief Executive Officer of Booking Holdings. Mr. Fogel continued, "Our third quarter financial results highlight our meaningful size and scale that we intend to leverage as we invest against a very large global travel market opportunity."
Booking Holdings (NASDAQ: BKNG) stock price history
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 $1173 a stock and its currently trading at $1879.19. That's a very healthy return of 60.2% provided to Booking Holdings stockholders over the last 5 years.
Booking Holdings stock is trading at close to its midpoint between its 52 week high and its 52 week low, which to us is a clear indication that the short term sentiment and momentum of the stock is neutral.
Booking Holdings stock is trading at close to its midpoint between its 52 week high and its 52 week low, which to us is a clear indication that the short term sentiment and momentum of the stock is neutral.
Booking Holdings (NASDAQ: BKNG) stock price history over the last 5 years
Recent coverage of Booking Holdings
The extract below shows recent coverage of Booking Holdings as obtained from MarketWatch.com
Booking Holdings Inc. BKNG, +1.58% shares bounced back from a tough day of trading with gains in after-hours action Thursday following an earnings report that beat expectations. The travel-website company formerly known as Priceline reported third-quarter profit of $1.95 billion, or $45.54 a share, on sales of $5.04 billion, up from $4.85 billion a year ago. After adjusting for debt and equity costs and other effects, Booking reported earnings of $45.36 a share, up from $37.78 a share a year ago. Analysts on average expected adjusted earnings of $44.50 a share on sales of $5.08 billion. Booking stock sank 8.1% to $1,849.93 in the regular session Thursday after disappointing results on Wednesday from rivals Expedia Inc. EXPE, +3.08% and TripAdvisor Inc. TRIP, +0.98% In the extended session following the release of the results, shares rose more than 4%.
Read the full article here
Booking Holdings Inc. BKNG, +1.58% shares bounced back from a tough day of trading with gains in after-hours action Thursday following an earnings report that beat expectations. The travel-website company formerly known as Priceline reported third-quarter profit of $1.95 billion, or $45.54 a share, on sales of $5.04 billion, up from $4.85 billion a year ago. After adjusting for debt and equity costs and other effects, Booking reported earnings of $45.36 a share, up from $37.78 a share a year ago. Analysts on average expected adjusted earnings of $44.50 a share on sales of $5.08 billion. Booking stock sank 8.1% to $1,849.93 in the regular session Thursday after disappointing results on Wednesday from rivals Expedia Inc. EXPE, +3.08% and TripAdvisor Inc. TRIP, +0.98% In the extended session following the release of the results, shares rose more than 4%.
Read the full article here
OpenTable one of Booking Holdings brands
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 (full value) price for Booking Holdings at $1809.30 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 $46.20. A good entry price into Booking Holdings would therefore be at $16280 or below.
We expect the stock of Booking Holdings to pull back from current levels to levels closer to our target price in coming weeks and months as we do believe the group's stock is overvalued at its current price
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 $46.20. A good entry price into Booking Holdings would therefore be at $16280 or below.
We expect the stock of Booking Holdings to pull back from current levels to levels closer to our target price in coming weeks and months as we do believe the group's stock is overvalued at its current price
Next earnings release of Booking Holdings
It is expected that Booking Holdings will release their 4th quarter and full fiscal 2019 results in early February 2020