Airbnb Q3 2022 Earnings Preview: Travel Bookings to Set the Trend
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Airbnb (NASDAQ:ABNB) is scheduled to announce Q3 earnings results on Tuesday, November 1st, after market close.
The consensus EPS Estimate is $1.55 and the consensus Revenue Estimate is $2.85B (+27.3% Y/Y).
This California-based online travel stock lost over 6% after a projection of âstable bookingsâ into the third quarter came up short of what analysts had anticipated. In its Q2 2022 earnings report, Airbnb reported a slight miss on bullish booking estimate, however, from a profitability perspective, management noted its âmost profitable quarter everâ with EPS of $0.56 alongside a 57.6% jump in revenue to $2.1B.

"Bears will point to signs of a potential consumer slowdown given elevated travel costs, macro pressures and possible shift back to hotels," wrote Bank of America analyst Justin Post.

Investors will closely be watching Airbnb (ABNB) earnings as it is likely to set the trend on how the travel sector performed in the third quarter while peers Expedia Group (EXPE) and Booking Holdings (BKNG) are scheduled to release their earnings reports later this week.
Gauging on some recent trends in credit and debit card data, Bank of America said travel bookings showed some deceleration in September.
While BofA thinks a key driver for share prices on travel stocks will be the earnings calls when Q4 bookings trends are updated amid the uncertain macroeconomic backdrop, the research firm assigns Neutral rating to Airbnb (ABNB) with price objective of $125 based on 8X the 2023 revenue estimate.
At Bernstein, Airbnb becomes the top online travel agency stock pick.
That compares to Seeking Alpha Quant System rating of Hold and Wall Street analysts' rating of Buy, on average, to Airbnb (ABNB).
Over the last 3 months, Airbnb (ABNB) EPS estimates have seen 8 upward revisions and 1 downward. Revenue estimates have seen 21 upward revisions and 10 downward.
ABNB shares are down 7% on Monday while the stock has lost over 30% in the past 1-year compared to S&P 500 -15% return.