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.
BKNG's Stochastic Oscillator is sitting in oversold zone for 5 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are Booking Holdings (NASDAQ:BKNG), Royal Caribbean Group (NYSE:RCL), Trip.com Group Limited (NASDAQ:TCOM), Carnival Corp (NYSE:CCL), Expedia Group (NASDAQ:EXPE), WW International (NASDAQ:WW).
Industry description
Other consumer services include companies that provide consumer services, and are not classified elsewhere. Travel fare aggregators, hotel bookings, consumer-to-consumer or business-to-business sales platforms are some examples of services that can be clubbed into this category. Many of such services have expanded online. Booking Holdings Inc, The Priceline Group Inc, and eBay Inc. are some major operators in this segment.
Market Cap
The average market capitalization across the Other Consumer Services Industry is 8.77B. The market cap for tickers in the group ranges from 158.6K to 121.92B. BKNG holds the highest valuation in this group at 121.92B. The lowest valued company is PRXIQ at 158.6K.
High and low price notable news
The average weekly price growth across all stocks in the Other Consumer Services Industry was -2%. For the same Industry, the average monthly price growth was 9%, and the average quarterly price growth was 4%. RGS experienced the highest price growth at 50%, while IVP experienced the biggest fall at -55%.
Volume
The average weekly volume growth across all stocks in the Other Consumer Services Industry was 43%. For the same stocks of the Industry, the average monthly volume growth was -54% and the average quarterly volume growth was 4%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 59
P/E Growth Rating: 77
Price Growth Rating: 55
SMR Rating: 71
Profit Risk Rating: 88
Seasonality Score: 7 (-100 ... +100)