Airbnb (ABNB) has reported second-quarter financial results that beat Wall Street forecasts, raised guidance, and announced a $6 billion stock buyback program.
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The company said its Q2 earnings per share (EPS) came in at $1.03, which was above the $0.93 expected among analysts. Revenue in the April through June period came in at $3.10 billion, which was ahead of the $3.04 billion consensus forecast on Wall Street. Sales were up 13% from a year earlier.
Looking ahead, Airbnb said that for the current third quarter it expects revenue of $4.02 billion to $4.10 billion, or $4.06 billion at the midpoint of the range. Analysts were anticipating $4.05 billion in sales for Q3. “Despite global economic uncertainty early in the quarter, travel demand picked up, and nights booked on Airbnb accelerated from April to July,” the company said in its earnings release.
Airbnb’s earnings per share. Source: Main Street Data
Stock Buyback
Airbnb reported 134.4 million nights and experiences booked during the year’s second quarter, up 7% from a year ago and above the 133.35 million expected among analysts. Gross booking value, which Airbnb uses to report host earnings, service fees, cleaning fees and taxes, totaled $23.5 billion, above the $22.66 billion expected on Wall Street.
Airbnb also announced a new stock buyback program worth $6 billion of the company’s Class A common stock. The company said it repurchased $1 billion of Class A stock during the second quarter, and previously had authorization to purchase $1.5 billion more as of June 30.
ABNB stock is down 1% on the year.
Is ABNB Stock a Buy?
The stock of Airbnb has a consensus Hold rating among 20 Wall Street analysts. That rating is based on six Buy, eight Hold, and six Sell recommendations issued in the last three months. The average ABNB price target of $134.64 implies 3.60% upside from current levels. These ratings are likely to change after the company’s financial results.
