Trip.com Group Is Maintained at Outperform by Mizuho

Target Hospitality (TH) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this company would post earnings of $0.17 per share when it actually produced earnings of $0.18, delivering a surprise of 5.88%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Target Hospitality, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $95.19 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 8.30%. This compares to year-ago revenues of $145.94 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Target Hospitality shares have lost about 5.3% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for Target Hospitality?

While Target Hospitality has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Target Hospitality: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.11 on $83.67 million in revenues for the coming quarter and $0.62 on $379 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Trip.com (TCOM), has yet to report results for the quarter ended September 2024. The results are expected to be released on November 18.

This travel services company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Trip.com's revenues are expected to be $2.2 billion, up 16.7% from the year-ago quarter.

Zacks Investment Research

The most recent trading session ended with Trip.com (TCOM) standing at $66.68, reflecting a +1.83% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 0.06%.

Heading into today, shares of the travel services company had gained 0.69% over the past month, lagging the Consumer Discretionary sector's gain of 5.33% and the S&P 500's gain of 4.37% in that time.

Market participants will be closely following the financial results of Trip.com in its upcoming release. The company plans to announce its earnings on November 18, 2024. The company is expected to report EPS of $0.91, down 9% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.2 billion, indicating a 16.65% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.36 per share and a revenue of $7.35 billion, demonstrating changes of +22.63% and +18.09%, respectively, from the preceding year.

Any recent changes to analyst estimates for Trip.com should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Trip.com is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Trip.com is at present trading with a Forward P/E ratio of 19.49. This signifies a discount in comparison to the average Forward P/E of 21.72 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Zacks Investment Research

Airbnb ABNB reported third-quarter 2024 adjusted earnings of $2.13 per share, missing the Zacks Consensus Estimate by 1.84%.

The latest lag follows the second-quarter 2024’s miss of 6.52%. ABNB’s earnings beat the Zacks Consensus Estimate in the remaining two of the trailing four quarters, the earnings surprise being 20.83%, on average.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues of $3.73 billion increased 10% year over year, both on a reported and FX-neutral basis. The top line beat the Zacks Consensus Estimate by 0.26%. The year-over-year increase was driven by the growth of nights stayed on the platform.

ABNB Shares Fall Post Q3 Earnings

ABNB shares were down 4.56% in after-hours trading following the results due to sluggish near-term guidance. Higher marketing and product development expenses are expected to hurt the adjusted EBITDA margin in the fourth quarter of 2024.

Airbnb, Inc. Price, Consensus and EPS Surprise

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

Airbnb shares have returned 6.5% year to date (YTD), underperforming the broader Zacks Consumer Discretionary sector’s appreciation of 7.4% and the Zacks Leisure and Recreation Services industry’s return of 18.4%.

Over the same timeframe, ABNB has also underperformed its nearest competitors, Booking Holdings BKNG, Expedia EXPE and Trip.com Group TCOM.

Booking Holdings, Expedia and Trip.com Group shares have appreciated 38.7%, 14.7% and 90% YTD, respectively.

Before diving into ABNB’s investment prospects, let’s take a glance at its quarterly numbers.

ABNB Benefits From New Feature Additions

ABNB’s third-quarter results reflected growing demand for its services. Airbnb’s focus on improving user experience through a plethora of feature additions (more than 535 over the past three years) is noteworthy.

Third-quarter 2024 Gross Booking Value was $20.1 billion, up 10% year over year. This was driven by strong Nights and Experiences Booked and a modest increase in Average Daily Rates (ADR).

Nights and Experiences Booked were 122.8 million, up 8% year over year. The metric was driven by strong performances in all regions, especially the Asia Pacific and Latin America.

ADR (Gross Booking Value per Night and Experience Booked) was $164, up 1% on a year-over-year basis. Excluding FX, ADR grew 2% and was flat to up across all regions, primarily due to price appreciation and mix shifts.

In addition, nights booked on the app during the reported quarter increased 18% year over year and comprised 58% of total nights booked (up from 53% in the year-ago quarter). Airbnb saw continued growth of first-time bookers, particularly the youngest travelers.

Airbnb’s Operating Results

Adjusted EBITDA was $2 billion, up 7% on a reported basis and 8% on a FX-neutral basis year over year. Adjusted EBITDA margin was 52%, down 200 basis points year over year.

Operations and support costs, product development expenses, and sales and marketing expenses were $369 million, $524 million and $514 million, respectively, increasing 16.8%, 25% and 27.5% year over year. General and administrative expenses were $315 million, up 10.2% year over year.

Airbnb reported a third-quarter 2024 operating income of $1.53 billion, up 1.9% year over year.

ABNB’s Balance Sheet & Cash Flow Remain Strong

As of Sept. 30, 2024, cash and cash equivalents and short-term investments amounted to $11.3 billion, unchanged sequentially. ABNB had $6.6 billion of funds held on behalf of guests.

Long-term debt, as of Sept. 30, 2024, was $1.994 billion compared with $1.993 billion as of June 30, 2024.

Net cash provided by operating activities was $1.1 billion for the third quarter of 2024, unchanged sequentially but down $1.3 billion reported in the year-ago quarter. ABNB paid $163 million to the IRS, which negatively impacted cash flow.

Airbnb generated a free cash flow of $1.1 billion in the third quarter of 2024 and $4.1 billion over the trailing 12 months.

ABNB repurchased shares worth $1.1 billion in the reported quarter. As of Sept. 30, it still has $4.2 billion under current share repurchase authorization.

Airbnb’s Guidance Implies Near-Term Weakness

For the fourth quarter of 2024, ABNB expects revenues between $2.39 billion and $2.44 billion. Airbnb anticipates take rate in the fourth quarter will be slightly lower on a year-over-year basis, due to one-time benefits recognized from unused gift cards in the year-ago quarter.

Excluding these one-time benefits related to gift cards in the fourth quarter of 2023, revenue growth in the fourth quarter of 2024 is expected to be approximately 2%.

The Zacks Consensus Estimate is pegged at $2.42 billion, indicating 9.26% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is pegged at 75 cents, unchanged over the past 30 days, suggesting a 1.32% year-over-year decline.

For 2024, ABNB expects an adjusted EBITDA margin of roughly 35.5%. The free cash flow margin is expected to be several points above ABNB’s adjusted EBITDA margin for the full year.

Airbnb currently expects first-quarter 2025 revenues to decline on a year-over-year basis due to tough comparisons with the year-ago quarter.

ABNB Shares – Buy, Sell or Hold Post Q3 Earnings?

Airbnb’s focus on improving user experience bodes well for investors. Its 2024 Winter Release included more than 50 upgrades for guests that make the app more personalized. ABNB is striving to improve listing quality and has removed more than 300K listings that failed to meet guest expectations.

Hosting is gaining traction, with more than 8 million active listings currently. ABNB witnessed growth across all regions and market types in the reported quarter. Features like Co-Host Network are expected to make hosting much easier.

Expansion into new markets like Japan presents a significant growth opportunity for ABNB. In the third quarter, the average growth rate of nights booked in expansion markets was more than double that of Airbnb’s core markets. Growing demand for its services and the availability of more payment options in expansion markets is a long-term driver for ABNB.

However, sluggish near-term guidance due to tough year-over-year comparison and higher expenses is a headwind. Higher marketing expenses as the company continues to invest in underpenetrated markets are expected to hurt profitability.

Airbnb shares are also currently overvalued, as suggested by a Value Score of D.

ABNB currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a favorable entry point to accumulate the stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research

Planet Fitness (PLNT) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 10.34%. A quarter ago, it was expected that this fitness center operator would post earnings of $0.65 per share when it actually produced earnings of $0.71, delivering a surprise of 9.23%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Planet Fitness, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $292.25 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3%. This compares to year-ago revenues of $277.55 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Planet Fitness shares have added about 16% since the beginning of the year versus the S&P 500's gain of 24.3%.

What's Next for Planet Fitness?

While Planet Fitness has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Planet Fitness: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $299.3 million in revenues for the coming quarter and $2.43 on $1.13 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Trip.com (TCOM), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 18.

This travel services company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Trip.com's revenues are expected to be $2.2 billion, up 16.7% from the year-ago quarter.

Zacks Investment Research

AMC Entertainment (AMC) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this movie theater operator would post a loss of $0.10 per share when it actually produced a loss of $0.43, delivering a surprise of -330%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

AMC Entertainment, which belongs to the Zacks Leisure and Recreation Services industry, posted revenues of $1.35 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.20%. This compares to year-ago revenues of $1.41 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

AMC Entertainment shares have lost about 28.3% since the beginning of the year versus the S&P 500's gain of 21.2%.

What's Next for AMC Entertainment?

While AMC Entertainment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for AMC Entertainment: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.10 on $1.33 billion in revenues for the coming quarter and -$0.86 on $4.63 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Services is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Trip.com (TCOM), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 18.

This travel services company is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Trip.com's revenues are expected to be $2.2 billion, up 16.7% from the year-ago quarter.

Zacks Investment Research