Booking Holdings Inc. (NYSE: BKNG) experienced a surge in its stock price during after-hours trading on Thursday after the popular travel and booking site announced impressive earnings for the second quarter. The company also provided an optimistic outlook for the upcoming summer travel season.
Positive Financial Results
Booking reported a net income of $1.29 billion for the second quarter, translating to earnings of $35.16 per share. This is a significant increase compared to the year-ago period, where net income stood at $857 million, or $21.07 per share. When excluding stock-based compensation expenses and other items, adjusted earnings were $37.62 per share, up from $19.08 per share last year.
Additionally, the company’s revenue rose to $5.46 billion from $4.29 billion in the second quarter of the previous year. These results surpassed the expectations of analysts surveyed by FactSet, who had predicted earnings of $28.98 per share on revenue of $5.17 billion.
Record-breaking Summer Travel Season
Booking CEO Glenn Fogel expressed excitement about the strong leisure travel demand observed during the second quarter, which contributed to better-than-anticipated room nights and gross bookings results. This positive trend has continued into July, leading the company to prepare for what is expected to be a record summer travel season in the third quarter.
Booking Holdings Inc.’s impressive financial performance and optimistic projection for the upcoming summer travel season have instilled confidence in investors, as reflected in the significant increase in its stock price after hours. With robust leisure travel demand and a promising outlook, the company is well-positioned to navigate the evolving travel industry landscape.