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What You Need to Know Ahead of Airbnb's (ABNB) Q1 Earnings

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Airbnb (ABNB - Free Report) is scheduled to report first-quarter 2023 results on May 9.

For the first quarter, Airbnb expects revenues between $1.75 billion and $1.82 billion, implying year-over-year growth in the band of 16-21% on a reported basis and 18-23% on an FX neutral basis.

The Zacks Consensus Estimate for the same is pegged at $1.79 billion, indicating growth of 18.6% from the year-ago quarter’s reported value.

The Zacks Consensus mark for earnings is pegged at 10 cents per share, revised downward by 23.1% over the past seven days. The company reported a loss of 3 cents per share in the year-ago quarter.

Airbnb’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 57.21%.

Airbnb, Inc. Price and EPS Surprise

 

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote

Factors to Consider

Airbnb has been witnessing steady improvements in long-distance and cross-border travel due to relaxed travel restrictions. This is likely to have continued to aid its performance in the first quarter.

Growing momentum among travelers is likely to have continued driving the Nights and Experiences Booked and Average Daily Rates in the to-be-reported quarter.

Strengthening demand in North America, EMEA and Latin America is likely to have driven ABNB’s performance in the quarter under discussion.

Increasing guest demand for non-urban nights is expected to have continued driving active listings for non-urban destinations in the quarter under review.

Airbnb’s consistent efforts to enhance various aspects of its services to gain momentum among its hosts and guests are likely to have benefited the quarterly performance.

However, uncertainties related to the coronavirus pandemic are expected to have been concerning in the first quarter.

The impacts of macroeconomic headwinds, including rising prices and geo-political tensions, are likely to get reflected in the upcoming quarterly results.

Intense competition in the online travel market is anticipated to have been an overhang in the to-be-reported quarter.

What Our Model Says

Our proven model predicts an earnings beat for Airbnb this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is precisely the case here.

Airbnb has an Earnings ESP of +11.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ABNB carries a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.

DigitalOcean (DOCN - Free Report) has an Earnings ESP of +3.45% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from the 7 cents reported in the prior-year quarter.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #2 at present.

Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, suggesting an increase of 12.4% from the prior-year quarter’s reported figure.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3 at present.

CSCO is scheduled to report third-quarter fiscal 2023 results on May 17. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 97 cents per share, suggesting an increase of 11.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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