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For the second quarter, ABNB expects revenues between $2.68 billion and $2.74 billion, implying year-over-year growth of 8-10% on a reported basis.
The Zacks Consensus Estimate for the same is pegged at $2.75 billion, indicating growth of 10.7% from the year-ago quarter’s reported value.
The Zacks Consensus Estimate for earnings is pegged at 92 cents per share, suggesting a decline of 6.1% from the year-ago reported figure. The figure has moved up 1.1% over the past 30 days.
Image Source: Zacks Investment Research
Airbnb has an impressive earnings surprise history. In the last reported quarter, the company delivered an earnings surprise of 78.26%. The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 33.47%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict 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. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Airbnb’s solid momentum in its marketplace, which connects hosts and guests online, and strong listings on its platform are expected to have helped it grow in urban and non-urban areas in the second quarter.
Growing traction across non-urban areas, and increasing demand for urban and cross-border travel are expected to have driven growth in its gross nights booked. The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 126 million, indicating year-over-year growth of 9.6%.
Airbnb’s growing investments to expand its international footprint are anticipated to have been positives. Its deepening focus on under-penetrated or less mature international markets to unlock growth opportunities is likely to have benefited the quarterly performance.
The company’s strong efforts to strengthen its core services on the back of new features and upgrades are expected to have been other positives. A new feature called Guest Favorites, which is a collection of the most-loved homes on Airbnb based on ratings, reviews and reliability data, is expected to have driven momentum among various guests.
The introduction of a label feature to rank the top-listed properties of the company with a badge is noteworthy. It allows customers to see the top 25% and top 1% properties on the listing page, enabling them to choose wisely among a wide range of properties.
These features are expected to have contributed well to the gross booking value (GBV) in the second quarter. The Zacks Consensus Estimate for GBV is pegged at $21.3 billion, indicating growth of 11.5% from the reported figure in the year-ago quarter.
Airbnb’s initiative to expand use cases, and support various kinds of is likely to have driven its momentum among various hosts worldwide.
Price Performance & Valuation
Airbnb’s shares have lost 5.8% on a year-to-date basis against the Zacks Internet-Content industry and the S&P 500 index’s rise of 3.2% and 12.4%, respectively.
Airbnb’s strong peers like Booking Holdings (BKNG - Free Report) and Expedia (EXPE - Free Report) have also lost 6.2% and 23.9% year to date.
Growing macroeconomic challenges and the impacts of geopolitical conflicts are concerning in the travel industry and, thus, hurting the prospects of online travel booking platform operators.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Now, let us look at the value that Airbnb offers investors at current levels.
Airbnb's premium pricing is evident. Its trailing 12-month price-to-book value (P/B) ratio of 10.46X is way ahead of the industry average of 7.41X. This elevated valuation suggests high growth expectations from investors but also implies increased risk.
Image Source: Zacks Investment Research
Investment Thesis
Airbnb’s strong core business, strategic investments and expanding global footprint are major positives. Its strong efforts to deliver enhanced experience to both host and guest communities remain noteworthy and are expected to drive growth in the long run.
However, greater volatility in travel demands due to macroeconomic uncertainties, foreign exchange headwinds and the impacts of geopolitical conflicts are making the near-term prospects of the company foggy.
Also, rising competition in the online travel booking space does not bode well for Airbnb’s market position.
Conclusion
No matter how the upcoming quarterly results play out, we suggest the current ABNB shareholders maintain their positions. However, new investors should wait for a more favorable entry point, given the uncertainties surrounding the company’s prospects.
Image: Bigstock
Airbnb's (ABNB) Pre-Q2 Earnings Analysis: Should You Buy or Hold?
Airbnb (ABNB - Free Report) is scheduled to report second-quarter 2024 results on Aug 6.
For the second quarter, ABNB expects revenues between $2.68 billion and $2.74 billion, implying year-over-year growth of 8-10% on a reported basis.
The Zacks Consensus Estimate for the same is pegged at $2.75 billion, indicating growth of 10.7% from the year-ago quarter’s reported value.
The Zacks Consensus Estimate for earnings is pegged at 92 cents per share, suggesting a decline of 6.1% from the year-ago reported figure. The figure has moved up 1.1% over the past 30 days.
Image Source: Zacks Investment Research
Airbnb has an impressive earnings surprise history. In the last reported quarter, the company delivered an earnings surprise of 78.26%. The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 33.47%.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict 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. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Airbnb has an Earnings ESP of -7.24% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors to Consider
Airbnb’s solid momentum in its marketplace, which connects hosts and guests online, and strong listings on its platform are expected to have helped it grow in urban and non-urban areas in the second quarter.
Growing traction across non-urban areas, and increasing demand for urban and cross-border travel are expected to have driven growth in its gross nights booked. The Zacks Consensus Estimate for Nights and Experiences Booked is pegged at 126 million, indicating year-over-year growth of 9.6%.
Airbnb’s growing investments to expand its international footprint are anticipated to have been positives. Its deepening focus on under-penetrated or less mature international markets to unlock growth opportunities is likely to have benefited the quarterly performance.
The company’s strong efforts to strengthen its core services on the back of new features and upgrades are expected to have been other positives. A new feature called Guest Favorites, which is a collection of the most-loved homes on Airbnb based on ratings, reviews and reliability data, is expected to have driven momentum among various guests.
The introduction of a label feature to rank the top-listed properties of the company with a badge is noteworthy. It allows customers to see the top 25% and top 1% properties on the listing page, enabling them to choose wisely among a wide range of properties.
These features are expected to have contributed well to the gross booking value (GBV) in the second quarter. The Zacks Consensus Estimate for GBV is pegged at $21.3 billion, indicating growth of 11.5% from the reported figure in the year-ago quarter.
Airbnb’s initiative to expand use cases, and support various kinds of is likely to have driven its momentum among various hosts worldwide.
Price Performance & Valuation
Airbnb’s shares have lost 5.8% on a year-to-date basis against the Zacks Internet-Content industry and the S&P 500 index’s rise of 3.2% and 12.4%, respectively.
Airbnb’s strong peers like Booking Holdings (BKNG - Free Report) and Expedia (EXPE - Free Report) have also lost 6.2% and 23.9% year to date.
Growing macroeconomic challenges and the impacts of geopolitical conflicts are concerning in the travel industry and, thus, hurting the prospects of online travel booking platform operators.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Now, let us look at the value that Airbnb offers investors at current levels.
Airbnb's premium pricing is evident. Its trailing 12-month price-to-book value (P/B) ratio of 10.46X is way ahead of the industry average of 7.41X. This elevated valuation suggests high growth expectations from investors but also implies increased risk.
Image Source: Zacks Investment Research
Investment Thesis
Airbnb’s strong core business, strategic investments and expanding global footprint are major positives. Its strong efforts to deliver enhanced experience to both host and guest communities remain noteworthy and are expected to drive growth in the long run.
However, greater volatility in travel demands due to macroeconomic uncertainties, foreign exchange headwinds and the impacts of geopolitical conflicts are making the near-term prospects of the company foggy.
Also, rising competition in the online travel booking space does not bode well for Airbnb’s market position.
Conclusion
No matter how the upcoming quarterly results play out, we suggest the current ABNB shareholders maintain their positions. However, new investors should wait for a more favorable entry point, given the uncertainties surrounding the company’s prospects.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.