Booking Holdings: Coronavirus Will Hit 1Q Results

By Micah Maidenberg

Booking Holdings Inc. issued a warning about the coronavirus as it reported fourth-quarter results that beat Wall Street expectations.

"While the outlook for global travel in the near term is uncertain due to the coronavirus, we will manage the business appropriately to enhance long-term value for our stakeholders," Chief Executive Glenn Fogel said in a statement Wednesday.

The spread of the virus has had "a significant and negative impact across our business during the first quarter," the company said. It predicted key metrics, such as the number of hotel-room nights booked, would fall in the quarter, dragging revenue down.

The online travel company reported fourth-quarter revenue of $3.34 billion, up from $3.21 billion the year earlier and higher than of forecasts from analysts of $3.28 billion.

Net income grew to $1.17 billion, or $27.75 a share, from $646 million, or $13.86 a share, in the fourth quarter 2018.

The company said profit in the quarter grew in part because it recorded an unrealized gain of $326 million on equity securities.

Booking reported an adjusted profit of $23.30 a share, ahead of the average estimate of $22.04 a share on that metric on FactSet.

Booking operates Booking.com, airline-travel site Kayak, OpenTable, which provides restaurants reservations and other services, and other digital-travel brands.

The company said the number of room nights booked through its platforms grew 12% in the quarter versus the year earlier, as did the number of rental car days.

Booking reported 11% growth in the number of airline tickets purchased through its portals.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

February 26, 2020 16:33 ET (21:33 GMT)

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