Booking Q3 Revenue Misses as $900M FTC Charge Hits Profit
BKNG is trading near its 52-week low of $146.28 (4.7% above the low) on elevated volume (1.9× avg).
Summary
Booking's Q3 revenue fell 1% to $8.89 billion, well short of the $9.55 billion analysts expected, while profit dropped to $2.72 billion, or $3.61 a share, from $2.75 billion a year earlier. Adjusted EPS of $4.66 beat the $4.49 consensus, and gross bookings of $54.4 billion topped the $52.63 billion estimate, with room nights also ahead. The quarter absorbed a $900 million revenue reduction and a $100 million loss tied to an FTC matter, following the October reports that the agency was preparing to sue Priceline and Guest Reservations. Management said travel demand moderated late in the quarter on Middle East disruptions, Iran war fuel and airfare effects, and unrest in European cities including Paris, though domestic travel held up. For Q4 they guided room nights up 1% to 3% and gross bookings up 2% to 4%, and kept the full-year gross bookings and adjusted EPS outlook unchanged.
At the time of this announcement, BKNG was trading at $153.15 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $117B. The 52-week trading range was $146.28 to $220.81. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.