Booking Holdings (NASDAQ: $BKNG) is a world leader in online travel, and is behind leading brands like Booking.com, KAYAK, and Priceline. On Thursday, February 20, 2025, after markets closed, it released its Q4 fiscal 2024 results to a positive market reaction. Here is a deep dive into the earnings report.
Booking Holdings Q4 Results
For the fourth quarter of fiscal 2024, Booking Holdings reported revenue of $5.5 billion, a 14% YoY increase, and above estimates of $5.18 billion. It reported a 30% YoY increase in adjusted EPS to $41.55, beating forecasts of $35.89.
Other Financial Highlights
In the fourth quarter, Gross Bookings soared 17% YoY to $37.2 billion, beating estimates of $34.34 billion, while Room Nights increased 13% YoY to 261 million, beating estimates of 249.35 million. The company ended the quarter with $0.6 billion in free cash flow, a 49% YoY decline. It also reported $0.7 billion in net cash from operating activities, a 46% YoY decline.
Full-Year highlights
In fiscal 2024, full-year revenue increased 11% YoY to $23.7 billion, while Gross Bookings were up 10% YoY to $165.6 billion. The company saw a 9% YoY increase in room ninths 1.1 billion, while the full-year adjusted EPS rose 23% YoY to $187.10. It ended the year with $8.3 billion in net cash from operating activities, and $7.9 billion in free cash flow, both of which were up 13% YoY.
Shareholder Returns
The company’s board announced a cash dividend of $9.6 per share for Q1 fiscal 2025, a 10% YoY from the quarterly dividend paid in fiscal 2025. Throughout fiscal 2024, the company bought back $1.1 billion worth of shares, with $7.7 billion remaining under the current share buyback program. Additionally, the board has authorized an additional $20 billion for the share buyback program.
Booking Holdings (BKNG) Market Performance
Following the earnings and revenue beat, BKNG shares soared 3.92% in premarket trading to $5,215 per share as of 8:19 AM EST on Friday, February 21, 2025. Year to date, BKNG shares are up 1%, while in the past six months, the shares have gained 35.54%. Meanwhile, the stock is up 35.60% in the past 12 months.
Overall, BKNG shares have performed better than the market. The shares are trading above both the 50 and 200-day moving averages of $4,933.35, and $4,307.41, respectively.
Analysts give BKNG shares an overall moderate buy rating. They forecast an average price of $5,472.68, which is a 9.06% upside based on Thursday’s closing price. The analysts give a wide range of price targets, with a high of $6,300, and a low of $4,470.
Is Booking Holdings A Buy In 2025?
Booking Holdings has made huge investments in technology, especially in AI, which has enhanced the user experience, and contributed to revenue growth. Additionally, the company has made a strategic shift to a new business model called “Connected Trip” that encourages customers to purchase a connected travel itinerary, leading to greater customer retention. Coupled with its robust financial position, adding BKNG shares to your portfolio could potentially pay off in the long-term.
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