Bookings Holdings (BKNG, $1,906) shares drop -10% in morning trade, on lower-than-expected earnings guidance
Bookings Holdings shares declined close to -10% Thursday morning.
The company, which operates several travel fares aggregators and travel search engines, reported earnings of $22.49 per share (on a GAAP basis), beating analysts’ estimates of $19.39 per share. The earnings-per-share was also +33% higher compared to the year-ago quarter. Revenue increased +16% year-over-year to touch $3.213 billion, slightly higher than analysts’ expectations of $3.211 billion.
What led to the company’s shares plunging was its weaker-than-expected guidance for the first quarter of 2019, coupled with some downgrades by analysts.
Bookings Holdings’ earnings projection of $9.90 to $10.20 per share for first quarter 2019 was below analysts’ forecast of $11.76 per share (on a GAAP basis). On top of that, it faced two downgrades. Piper Jaffray's Michael Olson downgraded the firm’s stock to neutral from overweight, while lowering his price target to $1,800 a share from $2,100. Oppenheimer's Jed Kelly downgraded Bookings to market perform from outperform.
Aroon Indicator for BKNG shows an upward move is likely
BKNG's Aroon Indicator triggered a bullish signal on December 06, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 287 similar instances where the Aroon Indicator showed a similar pattern. In of the 287 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BKNG advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for BKNG turned negative on November 25, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BKNG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BKNG broke above its upper Bollinger Band on November 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BKNG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: BKNG's P/B Ratio (98.039) is very high in comparison to the industry average of (13.138). P/E Ratio (30.391) is within average values for comparable stocks, (55.221). Projected Growth (PEG Ratio) (1.018) is also within normal values, averaging (1.802). Dividend Yield (0.002) settles around the average of (0.053) among similar stocks. P/S Ratio (6.101) is also within normal values, averaging (22.119).
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General Information
a provider of online travel and related services
Industry OtherConsumerServices