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Booking Holdings (NASDAQ:BKNG) reported strong Q4 results, with EPS of $24.74 coming in better than the consensus estimate of $22.00.
Revenue grew 36% year-over-year (up 49% on a constant-currency basis) to $4 billion, beating the consensus estimate of $3.9B.
Q4 gross travel bookings were $27.3B, representing an increase of 44% year-over-year (or 58% on a constant-currency basis). Room nights booked increased 39% year-over-year.
“Looking back at the full year of 2022, I am proud of our company’s performance during what was a challenging and competitive environment. We generated our highest-ever level of revenue of $17 billion in the year, which increased 56% versus 2021 and was 13% higher than in 2019,” said Glenn Fogel, CEO of the company.
JPMorgan analysts reiterated a Top Idea designation on BKNG stock and raised the price target to $2,850 per share on “solid” Q4 results.
“We’re encouraged 4Q room nights were above 2019 levels across all geos for the first time, & BKNG is not seeing signs of consumer trade down to lower-star hotels or reducing trip lengths despite macro & ADR headwinds. While the 1Q outlook implies some moderation from January levels, we believe trends remained strong into February, & BKNG’s low-teens bookings growth outlook for 2023 embed their goal of outpacing the broader accommodations market growth,” analysts wrote in a client note.
Piper Sandler analysts also hiked the price target as he went to $2,524 from $2,050 per share.
“Trends sound positive through January, although partially benefiting from easier comps. Management talked to low-teens bookings growth for FY23 which implies a deceleration through the year. Margins should improve slightly y/ y. Estimates move higher & we roll-forward our DCF to 2028,” they said.
