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Airbnb, Inc. (ABNB), headquartered in San Francisco, California, operates a platform that enables hosts to offer stays and experiences to guests. Valued at $94.60 billion by market cap, the company offers lodging, homestay, and tourism services via websites and mobile applications. The online accommodations platform is expected to announce its fiscal second-quarter earnings for 2024 on Thursday, Aug. 1.
Ahead of the event, analysts expect ABNB to report a profit of $0.91 per share on a diluted basis, down 7.1% from $0.98 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. In the previous quarter, ABNB’s active listings increased 15% year over year, and gross booking value rose 12% year-over-year to $22.90 billion.
For the full year, analysts expect ABNB to report EPS of $4.65, up 6.2% from $4.38 in fiscal 2023.
ABNB stock has underperformed the S&P 500’s ($SPX) 16.2% gains on a YTD basis, with shares up 9.2% during this period. However, it outperformed the Consumer Disc ETF Vanguard’s (VCR) 5.6% gains over the same time frame.
On May 28, ABNB shares closed up more than 1% after Wedbush upgraded the stock to Outperform from Neutral with a price target of $165.
ABNB began the year strongly led by booking growth, recovery in cross-border travel, and its strong appeal to first-time bookers with diverse accommodation choices. The strong travel trends can be evidenced by its robust Q1 results. Its revenue came in at $2.14 billion, up 17.8% year over year. The company’s EPS of $0.41 improved from its EPS of $0.17 in the year-ago quarter.
However, on May 9, ABNB shares closed down more than 6% after forecasting weaker-than-expected Q2 revenue. The company expects second-quarter revenue between $2.68 billion and $2.74 billion, with the midpoint of $2.71 billion below the consensus forecast of $2.74 billion. Since its Q1 results were reported, ABNB shares have been on a downtrend.
Analysts’ consensus opinion on ABNB stock is bullish, with a “Moderate Buy” rating overall. Out of 36 analysts covering the stock, 11 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 20 give a “Hold” rating, one suggests a “Moderate Sell” rating, and three recommend a “Strong Sell.” The average analyst price target for ABNB is $154.61, indicating a potential upside of 5.3% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
