Booking Holdings (BKNG, Financial) experienced a significant stock movement with a 5.36% price surge, following the release of its strong Q3 2024 earnings report. The company's performance exceeded analysts' expectations, solidifying investor confidence and contributing to the upward stock trend.
In Q3 2024, Booking Holdings surprised the market with an adjusted profit of $83.89 per share, against the anticipated $77.47 per share, on sales nearing $8 billion, surpassing the expected $7.6 billion. Despite achieving a 9% year-over-year sales growth, the net income remained steady at $2.5 billion. The increase in earnings per share to $74.34, representing less than a 7% growth from the previous year, was mainly driven by a 6% decrease in the share count due to stock buybacks.
Booking Holdings reported a considerable rise in free cash flow, reaching $7.2 billion year to date, marking a 26% increase compared to the previous year. The company is on track to potentially achieve $9.6 billion in free cash flow this fiscal year, well above Wall Street's forecast of $7.5 billion for 2024.
From a valuation perspective, Booking Holdings (BKNG, Financial) is currently priced at $4,703.22. The stock holds a price-to-earnings (PE) ratio of 32.93, indicating a premium valuation. Despite this, some of its financial metrics, such as an Altman Z-score of 6.15 and a Piotroski F-Score of 7, demonstrate a robust financial standing. Additionally, the stock presents a GF Value of $4,082.50, suggesting the stock is "Modestly Overvalued".
Furthermore, BKNG's market capitalization stands at $157.67 billion, highlighting its significant presence in the online travel industry. The company's financial health, as illustrated by a strong free cash flow yield of 4.76% and a shareholder yield of 4.01%, suggests a well-managed capital allocation strategy.
