Airbnb (ABNB) to Announce Q2 Revenue: What’s in the Cards?
Airbnb ABNB is expected to release its second quarter 2021 results on August 12.
Airbnb expects second quarter 2021 revenue to be significantly higher year over year, given the impact of COVID-19 on the previous year’s quarter. Zacks’ consensus estimate for revenue is currently $ 1.28 billion.
For the quarter, the consensus mark for the loss has improved by a dime to 48 cents a share over the past 30 days.
T1 at a glance
Airbnb reported revenue of $ 887 million in the first quarter of 2021, up 5% year-over-year (3% at constant exchange rates). The net loss amounted to $ 1.2 billion from $ 341 million in the previous year quarter.
Airbnb, Inc. Price and EPS Surprise
Airbnb, Inc. price-eps-surprise | Airbnb Quote, Inc.
The revenue growth was driven by strength in North America and higher Average Daily Rates (“ADR”) during the quarter. ADR rose 35% year-on-year to $ 160. Airbnb delivered 64.4 million nights and booked experiences, representing 13% year-over-year growth.
The gross value of bookings in the first quarter was $ 10.3 billion, up 52% year-on-year (48% increase at constant exchange rates).
Let’s take a look at how things turned out for Airbnb before this announcement.
Factors to note
Airbnb benefited from the upturn in travel space in the first quarter of 2021 due to the vaccination campaign in North America. The trend is expected to have driven revenue growth in the quarter to be released.
The company’s superior brand value and strong consumer awareness are expected to have driven second quarter revenue growth. Travelers are choosing non-urban, low-density urban destinations, which Airbnb should have benefited from due to its strong host network.
ADR is expected to increase in the second quarter thanks to group travel and family continuing to remain strong as these customers prefer larger listings.
However, coronavirus-induced travel restrictions in Europe and Asia are expected to have hurt the company’s revenue growth.
What our model says
Depending on the Zacks model, the combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy), or 3 (hold) ranking increases the odds of beating the winnings.
Airbnb has a revenue ESP of + 32.91% and a Zacks # 3 rank. You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.
Other actions to consider
Here are a few other companies that are worth considering under our model, as they also have the right mix of elements to beat the profits of this reporting cycle:
CyberArk Software CYBR has an ESP on Profits of + 37.93% and a Zacks Rank of 2. You can see the full list of stocks in today’s Zacks Rank # 1 here.
Agilent A has an ESP on earnings of + 1.16% and is ranked # 2.
Cisco Systems CSCO has a +1.82% revenue ESP and a Zacks # 3 rank.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.