Airbnb (ABNB) is set to announce third quarter earnings on Thursday and investors will watch out for gross booking value (GBV) growth, plans for international expansions and investment in services and experiences.
Wall Street expects the San Francisco-based rental home company to post EPS of $2.32, while revenue is expected to increase 9.4% to $4.08 billion during the quarter.
The rental home company, during its Q2 earnings call, increased Q3 revenue guidance to $4.02 billion-$4.1billion and reaffirmed its full-year EBIDTA margin of at least 34.5%.
KeyBanc Capital Markets raised ABNB’s Q3 gross booking value and EBIDTA, reflecting higher nights and stays booked, driven by resilient travel demand.
The brokerage firm also raised its Q4 GBV and EBITDA, supported by stronger ADR from FX tailwinds, which was partially offset by a more conservative nights and seats booked outlook.
“Airbnb has highlighted success in less-penetrated markets such as Japan, Germany, and Brazil. We believe sustained momentum in emerging markets is essential to reaccelerate Nights and Seats Booked growth,” highlighted KeyBanc Capital Markets analyst Sergio Segura.
Wall Street, Seeking Alpha analysts and Seeking Alpha’s Quant Ratings are cautious and have rated the company as a Hold.
Seeking Alpha analyst Dilantha De Silva also rated the stock as Hold, saying that “Airbnb has delivered strong profitability growth since 2021, but revenue growth has moderated, leading to lackluster stock market returns.”
However, Dilantha De Silva highlighted that the performance in expansion markets could be the biggest near-term growth driver. While its hotel push is likely to be the biggest driver in the medium term.
Over the last three months, EPS estimates have seen eight upward revisions versus five downward moves, while revenue estimates have seen 26 upward revisions against seven downward revisions.
The stock has lost nearly 7% so far this year, compared to over 15% rise in the broader S&P500 Index.