Shares of Booking Holdings Inc. declined in Thursday’s pre-market session after the company issued mixed second-quarter results.
The Connecticut-based firm decreased by 3.13% or 61.47 points to $1,905.01 per share. The movement reversed Wednesday’s gain of 0.52% to $1,966.48.
Booking Holdings is one of the world’s largest online travel agencies, offering services from lodging to airline tickets. The business swung to a profit in the second quarter as the impact of the COVID-19 pandemic faded.
Accordingly, the firm reported a gain of $857.00 million or $21.15 per share. This figure advanced from the previous loss of $167.00 million, equivalent to $4.08 apiece, in the year-ago period. At the same time, the adjusted earnings were $19.08 per share, beating analysts’ expectations of $18.19.
Then, revenue jumped to $4.29 billion from $2.16 billion, yet missing the expected $4.33 billion. This highlighted higher hopes from investors on capturing demand for the predicted blockbuster rebound.
Booking stocks also slipped after the firm indicated that growth moderated at the start of the current quarter. The bleak report came amid global flight cancellations and long waits at airports deterred pandemic-weary travelers. Correspondingly, this statement damaged the market’s projections for a strong summer travel season.
Booking, Airbnb flagged moderate reservations
Aside from Booking, its peer Airbnb flagged moderate reservations on Tuesday. In addition, they forecast current-quarter bookings similar to the previous one.
Subsequently, major American carriers currently battle operational challenges and staff shortages. As a result, the companies had canceled thousands of flights over the four-day Memorial Day weekend.
Meanwhile, Booking CEO Glenn Fogel ensured that the firm remained bullish in the long term. The travel agency also cited record current-quarter revenue showing confidence in the faster-than-expected recovery despite rising airfares and hotel tariffs.
Furthermore, the website looks to take a bigger share in the hot travel market. It also announced plans on working options that will allow customers to pay in their own currency. This move will shield itself from exchange rate influences.
