Proactive Investors - Airbnb (NASDAQ:ABNB) Inc is expected to have capitalized on the surge in post-pandemic travel during the fourth quarter of 2022 when it reports its latest earnings after the bell on Tuesday.
Shares of the online marketplace for short-term stays and experiences had added 1.9% shortly before noon, as investors are hopeful Airbnb (NASDAQ:ABNB) will post a seventh consecutive positive set of earnings.
Per Bloomberg, analysts are expecting Airbnb to report 4Q revenue of $1.86 billion, up 21.4% year-over-year. Adjusted earnings per share are expected to come in at $0.33.
Fourth-quarter nights and experiences booked are forecast at 90.1 million, with first quarter 2023 revenue guidance expected to be $1.68 billion.
“Given that the market is looking for both EPS and revenues to have fallen from the prior quarter, you might argue that the bar is set relatively low for a strong result today which should help propel Airbnb shares higher,” commented TickMill Group market analyst James Harte.
Harte noted, looking at recent results in the travel sector, that 4Q earnings have mostly been positive, bar the weakness in Expedia (NASDAQ:EXPE), which suggests that Airbnb stands to post decent results today.
“The post-pandemic surge in travel and holidays is helping drive a rebound across the sector of which Airbnb is likely to have capitalized in 4Q,” he said.
“Ideally, for bulls in the stock, today’s earnings would come in above forecasts while US CPI would undershoot, creating perfect conditions for a further rally. Still, regardless of US CPI, if today’s results show strength, Airbnb should be poised for a breakout in coming weeks and months.”