Stock Story -
Online accommodations platform Airbnb (NASDAQ:ABNB) will be reporting results tomorrow after market close. Here's what to look for.
Airbnb beat analysts' revenue expectations by 3.9% last quarter, reporting revenues of $2.14 billion, up 17.8% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth. It reported 132.6 million nights booked, up 9.5% year on year.
Is Airbnb a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Airbnb's revenue to grow 10.2% year on year to $2.74 billion, slowing from the 18.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Airbnb has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Airbnb's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Booking (NASDAQ:BKNG) delivered year-on-year revenue growth of 7.3%, beating analysts' expectations by 1.5%, and MercadoLibre (NASDAQ:MELI) reported revenues up 41.5%, topping estimates by 8.3%. Booking traded down 8.6% following the results while MercadoLibre was up 10.7%.
Read the full analysis of Booking's and MercadoLibre's results on StockStory.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 4.9% on average over the last month. Airbnb is down 15.9% during the same time and is heading into earnings with an average analyst price target of $153 (compared to the current share price of $127.87).
