Airbnb (ABNB) to Report Q2 Earnings: What's in the Cards?

Airbnb ABNB is scheduled to report second-quarter 2022 results on Aug 2.

For the second quarter, ABNB expects revenues between $2.03 billion and $2.13 billion. The Zacks Consensus Estimate for the same is pegged at $2.1 billion, implying growth of 57.6% from the year-ago reported figure.

The consensus mark for earnings stands at 41 cents per share. ABNB reported a loss of 11 cents per share in the year-ago period. The consensus mark has been unchanged in the past 30 days.

Airbnb beat on earnings in all the trailing four quarters, the average being 67.8%.

Airbnb, Inc. Price and EPS Surprise

Airbnb, Inc. price-eps-surprise | Airbnb, Inc. Quote

Factors to Consider

Growing work-from-home initiatives amid the global coronavirus pandemic are encouraging people to travel at their convenient time. This flexibility in travel plans is expected to have driven Airbnb’s bookings in the to-be-reported quarter.

Strengthening demand in North America, EMEA and Latin America owing to the renewed rush in the summer travel season is likely to have supported ABNB’s performance in the second quarter.

Airbnb is witnessing a steady improvement in both longer-distance and cross-border travel owing to relaxed travel restrictions. This is likely to have continued aiding the performance in the quarter under discussion.

Growing momentum among travelers is likely to have continued driving the Nights and Experiences Booked and Average Daily Rates in the to-be-reported quarter.

Airbnb is consistently enhancing various aspects of the Airbnb service to gain momentum among its hosts and guests. This is likely to have benefited its second-quarter performance.

ABNB’s increasing free cash flow owing to growth in seasonal bookings is anticipated to have remained positive in the to-be-reported quarter.

However, uncertainties related to the coronavirus pandemic are expected to have remained concerns in the second quarter.

Also, the impacts of the ongoing Russia-Ukraine war and consumer price sensitivity are likely to have affected the quarterly performance.

Further, intense competition in the online travel market is anticipated to have remained a headwind in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Airbnb this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Airbnb has an Earnings ESP of -0.73% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Palo Alto Networks PANW has an Earnings ESP of +0.47% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Palo Alto Networks is set to report fourth-quarter fiscal 2022 results on Aug 22. The Zacks Consensus Estimate for PANW’s earnings is pegged at $2.28 per share, suggesting an increase of 42.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Box BOX has an Earnings ESP of +1.20% and a Zacks Rank #3 at present.

Box is scheduled to release second-quarter 2022 results on Aug 24. The Zacks Consensus Estimate for BOX’s earnings is pegged at 28 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want to Know the #1 Semiconductor Stock for 2022?

Few people know how promising the semiconductor market is. Over the last couple of years, disruptions to the supply chain have caused shortages in several industries. The absence of one single semiconductor can stop all operations in certain industries.

This year, companies that create and produce this essential material will have incredible pricing power. For a limited time, Zacks is revealing the top semiconductor stock for 2022. You'll find it in our new Special Report, One Semiconductor Stock Stands to Gain the Most.

Today, it's yours free with no obligation.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.