Tag: Beats

Booking Revenue Beats Estimates on Summer Lift in Travel

(Bloomberg) — Booking Holdings Inc. reported quarterly revenue that was better than analysts’ estimates, buoyed by cost-cutting and increased summer travel that offered a respite before Covid-19 cases started surging again.



a person holding a cell phone: The logo for Booking Holdings Inc. is displayed on a smartphone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Sunday, May 10, 2020. In a matter of months, the coronavirus reset the clock on a decades-long aviation boom that's been one of the great cultural and economic phenomena of the postwar world.


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The logo for Booking Holdings Inc. is displayed on a smartphone in an arranged photograph taken in the Brooklyn borough of New York, U.S., on Sunday, May 10, 2020. In a matter of months, the coronavirus reset the clock on a decades-long aviation boom that’s been one of the great cultural and economic phenomena of the postwar world.

Chief Executive Officer Glenn Fogel warned that a new wave of the pandemic will continue to weigh on the online travel giant’s prospects.

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Revenue fell 48% to $2.6 billion in the third quarter, the Norwalk, Connecticut-based company said in a statement Thursday. Analysts had projected $2.54 billion, according to data compiled by Bloomberg. That was also an improvement from a record 84% plunge in the second quarter.

Booking reported a 43% decline in the number of room-night reservations, compared with a year earlier. Gross travel bookings, which reflect all travel services booked by customers, fell 47% to $13.4 billion during the period.

“We were pleased to see positive third-quarter results, which we believe benefited greatly from some lifting of government lock-downs and the release of pent-up demand created by the almost complete cessation of travel during parts of the second quarter,” Fogel said in the statement. “However, Covid-19 case counts are now rising steeply in many parts of the world with corresponding increases in lock-downs and re-imposed travel restrictions that will continue to impact travel in the near-term.”

Newly booked room nights were down about 50% from a year earlier. The recent increase in Covid-19 cases in Europe and the U.S., coupled with cold weather and travel restrictions “will likely result in the second dip being U-shaped and lasting until the early spring of 2021,” Chief Financial Officer David Goulden said on a conference call.

Video: Wynn Resorts shares down after miss on the top and bottom lines in Q3 (CNBC)

Wynn Resorts shares down after miss on the top and bottom lines in Q3

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Booking, which runs five major travel brands including Priceline and Kayak, has been hammered by Covid-19. The company cut a quarter of the workforce at its main Booking.com business and slashed advertising spending, in addition to applying for government aid. Competitors including TripAdvisor Inc. and Airbnb Inc. also cut jobs amid the pandemic’s squeeze on travel.

Booking’s silver lining has been growth in domestic stays. The shift to remote work and a drop-off in business travel has fueled demand for alternative accommodations, or vacation rentals, as travelers opt for nearby “staycations.”

Still, Booking’s significant exposure to overseas markets — which comprise the vast majority of its revenue — could weigh on any recovery as European governments reinstate restrictions.

The company’s outlook is “less certain amid rising cases” of Covid-19 as it “may hurt near-term travel demand”, according

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Hotel Operator Hilton Shares Rise After Profit Beats Estimates; Target Price $100

Hilton Worldwide Holdings, one of the largest and fastest-growing hospitality companies in the world, reported a better-than-expected profit in the third quarter as cost-cutting helped the multinational hospitality company to recover from the COVID-19 pandemic slump, sending its shares up about 2% in the premarket.

The U.S. hotel operator said its diluted EPS at -$0.28 for the third quarter, and diluted EPS, adjusted for special items, was $0.06. That was better than market expectations of a loss of 2 cents per share.

Hilton posted a net loss of $81 million for the third quarter and adjusted EBITDA of $224 million. System-wide comparable RevPAR plunged 59.9% on a currency-neutral basis for the third quarter from the same period last year.

“The better than expected results and continued progress in key metrics should be incrementally positive for the shares, in the context of the broader market action. Despite the limited visibility into near-term business and group travel, the improving RevPAR and continued NUG are positive bases for recovery and furtherance of the financial merits of the business model,” said David Katz, equity analyst at Jefferies.

Hilton shares rose 1.61% to $92.11 in pre-market trading on Wednesday; however, the stock is down about 20% so far this year.

Executive Comments

“Our third-quarter results show meaningful improvement over the second quarter. The vast majority of our properties around the world are now open and have gradually begun to recover from the limitations that the COVID-19 pandemic has imposed on the travel industry, with occupancy increasing more than 20 percentage points from the second quarter,” said Christopher J. Nassetta, President & Chief Executive Officer of Hilton.

“While a full recovery will take time, we are well-positioned to capture rising demand and execute on growth opportunities.”

Hilton Stock Price Forecast

Ten equity analysts forecast the average price in 12 months at $89.89 with a high forecast of $104.00 and a low forecast of $80.00. The average price target represents a -0.84% decrease from the last price of $90.65. From those ten analysts, five rated “Buy”, five rated “Hold” and none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $81 with a high of $129 under a bull-case scenario and $49 under the worst-case scenario. The firm currently has an “Equal-weight” rating on the hospitality company’s stock. ValuEngine raised Hilton Worldwide to a buy rating from hold.

Several other analysts have also recently commented on the stock. Jefferies Financial Group raised to a buy rating from hold and increased their price target to $101 from $72. Raymond James increased their price target to $92 from $90 and gave the company an outperform rating. Citigroup increased their price target to $92 from $75 and gave the company a neutral rating.

We think it is good to buy at the current level with a target of $100 as 100-day Moving Average and 100-200-day MACD Oscillator signal a buying opportunity.

Analyst Comments

“Humana has both high earnings exposure (~75%) to Medicare Advantage (MA), and leading

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