Novo Nordisk Warns of Profit Decline as Wegovy Faces U.S. Price Pressure and Rising Competition 
CK Hutchison Unit Launches Arbitration Against Panama Over Port Concessions Ruling 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
Prudential Financial Reports Higher Q4 Profit on Strong Underwriting and Investment Gains 
Boeing Signals Progress on Delayed 777X Program With Planned April First Flight 
Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Anthropic Eyes $350 Billion Valuation as AI Funding and Share Sale Accelerate 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
Booking Holdings, a leading online travel agency, reported a significant beat on Wall Street's first-quarter profit expectations on Thursday, driven by a surge in international travel demand. The company's shares soared by 5.25% after-hours trading, highlighting investor confidence in the travel sector's recovery.
Reuters reported that despite a deceleration in domestic leisure travel within the U.S., robust international travel, particularly to destinations in Asia and the Middle East, has played a critical role in this quarter's success.
Key Financial Highlights
In a remarkable financial turnaround, Booking Holdings reported gross travel bookings of $43.5 billion, a 10% increase from the previous year. Room nights booked also rose 9%. The company's CFO, Ewout Steenbergen, attributed this growth to strong underlying demand and exceptional European performance.
Additionally, the negative impacts of the ongoing conflict in the Middle East were less severe than anticipated.
According to Yahoo, the Norwalk, Connecticut-based company disclosed a quarterly adjusted profit of $20.39 per share, significantly outperforming analysts' expectations of $14.06 per share based on LSEG data. Total revenue for the quarter was reported at $4.41 billion, up 17% year-over-year, surpassing the expected $4.25 billion.
Forward-Looking Statements and Challenges Ahead
Despite the current successes, Booking Holdings faces challenges ahead. The company anticipates a slowdown in room-night reservations for the ongoing quarter, influenced by escalating tensions in the Middle East, which could dampen regional tourism.
Projected growth rates for room-night bookings are between 4% and 6%, below the analysts' expectation of a 7.4% increase. Similarly, gross travel bookings are anticipated to experience a modest growth of 3% to 5%, missing Wall Street's forecasts for a 7.9% growth rate.
With a significant portion of its revenue deriving from non-U.S. travel, Booking Holdings has a notable exposure in Europe and the Middle East compared to its rivals like Expedia Group Inc. The company highlighted that 89% of its total revenue comes from international travel, with the Middle East—comprising countries such as Turkey and Egypt—accounting for approximately 7% of global room nights.
Market Implications
This earnings report arrives at a pivotal time for the online travel industry, which is navigating the post-pandemic recovery landscape. After several quarters of solid performance, companies like Booking Holdings, Expedia, and Airbnb are cautioning against expectations of continued extreme growth rates, underlining the unpredictability of the current global travel market.
Photo: PR Newswire
