Down 32%, Booking Holdings Announces 25-to-1 Stock Split. Time to Buy?

"Booking Holdings ( NASDAQ:BKNG ) just reported fourth-quarter results that beat top and bottom line estimates, raised its dividend, and announced a 25-to-1 stock split. The company continues to show strength in its core travel booking operations amid a recovering global market. However, Citi trimmed its price target, citing market volatility and slightly weaker-than-expected earnings and growth guidance. With shares down sharply in morning trading today, investors are questioning the outlook and asking if Booking Holdings is a buy."

"Booking delivered solid results this morning, with key metrics highlighting the resilience in its primary business of online travel reservations. Gross bookings reached $43 billion, up 16% year-over-year, driven by favorable currency effects and steady demand for accommodations and flights. Room nights - a central indicator of booking volume - grew 9%, marking the fourth straight quarter of acceleration and exceeding the company's own 4% to 6% guidance range. This growth was fueled by investments in Asia and improved marketing efficiency in the U.S."

"Revenue climbed 16% to $6.35 billion, surpassing analyst estimates of $6.12 billion. Adjusted EBITDA also rose to $2.2 billion, with margins expanding to 34.6% from 33.8% a year ago, thanks to $250 million in savings from the company's transformation program. Adjusted earnings came in at $48.80 per share, beating the consensus forecast by $0.30, while free cash flow surged 120% to $1.42 billion, underscoring Booking's efficient operations in facilitating hotel, rental car, and restaurant reservations through brands like Booking.com, Priceline, and OpenTable."

Booking Holdings beat estimates in Q4, raised its dividend, and announced a 25-to-1 stock split. Gross bookings rose to $43 billion, up 16% year-over-year, driven by currency tailwinds and demand for accommodations and flights. Room nights grew 9%, above the company's 4–6% guidance, aided by investments in Asia and improved U.S. marketing efficiency. Revenue increased 16% to $6.35 billion; adjusted EBITDA rose to $2.2 billion with margins of 34.6%, helped by $250 million in transformation savings. Adjusted EPS was $48.80, free cash flow rose 120% to $1.42 billion. Citi trimmed its price target amid market volatility.

Read at 24/7 Wall St.