Texas Roadhouse earnings missed by $0.05, revenue topped estimates
On Friday, Piper Sandler adjusted the price target for Booking Holdings (NASDAQ:BKNG) stock, increasing it to $5,120 from $4,900, while the firm maintained a Neutral rating on the shares. The adjustment followed Booking Holdings’ fourth-quarter 2024 earnings, which aligned with the company’s consistent pattern of meeting or exceeding expectations and then raising future guidance. According to InvestingPro analysis, the stock is currently trading above its Fair Value, with a market capitalization of $166.25 billion and impressive gross profit margins of 85.87%.
The financial officer of Booking Holdings, David I. Steenbergen, who has recently taken on the role, expressed confidence in the company’s direction. The firm has presented a robust capital allocation plan for the upcoming year, which includes high single-digit (HSD) bookings growth and mid-teens growth in earnings per share (EPS). The company’s strong financial position is reflected in its healthy current ratio of 1.31 and moderate debt levels.
Piper Sandler’s analysts have made slight revisions to their estimates, leading to the new price target of $5,120, while reiterating a Neutral stance on the stock. The analysts noted that despite the positive results, they maintain a cautious outlook on the online travel agency (OTA) sector as a whole. InvestingPro data reveals several key insights about the company’s valuation, with 11 additional ProTips available to subscribers, including detailed analysis of the company’s market position and growth potential.
For the year 2025, Booking Holdings is anticipating constant currency (cc) growth of approximately 8% year-over-year for both revenue and bookings, along with mid-teens growth in adjusted EPS. The company’s projections for the first quarter of 2025 are set below the full-year expectations, which analysts believe may indicate a conservative approach. This outlook aligns with the company’s historical performance, as evidenced by its revenue growth of 11.11% in the last twelve months and strong return over the last five years.
In other recent news, Booking Holdings reported its fourth-quarter 2024 earnings, significantly surpassing market expectations. The company achieved an earnings per share (EPS) of $41.55, outperforming the forecast of $36.13, and reported revenue of $5.47 billion, exceeding the expected $5.19 billion. Following these results, several analyst firms revised their price targets for the company. Evercore ISI increased its target to $5,500, maintaining an Outperform rating, while Goldman Sachs raised its target to $5,020 with a Neutral rating. JPMorgan set a new target of $5,750, keeping an Overweight rating, and Citi raised its target to $5,800, reaffirming a Buy rating.
The strong performance was attributed to significant growth in room nights and gross bookings, with room nights growing by 13% year-over-year. The company highlighted its strategic investments in artificial intelligence (AI) and operational efficiencies as key drivers of this growth. Booking Holdings also announced a $20 billion share buyback program, which is expected to provide additional support to the stock.
Analysts noted the company’s operational efficiency, with adjusted EBITDA for the fourth quarter coming in substantially above estimates. The management’s forward-looking statements suggest a commitment to sustaining growth and focusing on increasing direct traffic, which is expected to improve marketing leverage and achieve fixed-cost leverage in future periods. The company’s strategic initiatives, including alternative accommodations, the Connected Trip strategy, and generative AI, are anticipated to drive double-digit EPS growth in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.