Booking Holdings Reports Strong Q4 Earnings with Dividend Boost
Overview of Booking Holdings Q4 Financial Performance
Booking Holdings Inc (NASDAQ: BKNG) delivered impressive fourth-quarter results following the latest trading session. The company achieved a revenue milestone of $5.47 billion, surpassing analyst predictions, which estimated the total would be approximately $5.18 billion. Additionally, adjusted earnings per share reached $41.55, exceeding estimates of $35.89 per share.
Key Financial Metrics and Growth
Booking Holdings exhibited year-over-year growth across various metrics in its recent report. Total revenue increased by 14%, while room nights booked rose by 13%. Furthermore, gross bookings surged by 17%, demonstrating the company's robust performance amidst a competitive landscape.
Cash Flow and Financial Health
During this quarter, the organization generated around $700 million in operating cash flow, alongside $600 million in free cash flow. By the end of the quarter, the company had a substantial cash reserve amounting to $16.16 billion, reflecting strong financial health and operational efficiency.
CEO Insights on Company Growth
Glenn Fogel, CEO of Booking Holdings, expressed satisfaction with the company's strong finish for the year, noting, "We are pleased to be reporting a strong finish to 2024, with full year revenue increasing by 11% year-over-year while delivering faster profitability growth. We continue to adopt a disciplined approach to managing our expenses." His comments highlight the focus on sustained growth and profitability.
Investment in Technology
Booking Holdings remains committed to long-term growth strategies, including investments in technology. Fogel pointed out the significance of leveraging Generative AI technology to create added value for users and partners, indicating a forward-thinking approach against industry challenges.
Share Buyback and Dividend Announcement
In a bid to return value to shareholders, the company repurchased $1.1 billion of its common stock during the fourth quarter. With $7.7 billion still available for share repurchase initiatives, Booking Holdings continues to demonstrate a strong commitment to its shareholders.
Dividend Highlights
Excitingly, the board approved a cash dividend of $9.60 per share, up from $8.75 per share previously. This dividend will be payable on a future date to record holders, emphasizing the company's dedication to delivering shareholder value continuously.
Market Reaction and Stock Performance
Following the announcement of these robust earnings and the dividend boost, Booking Holdings shares experienced an upward movement, gaining 3.84% in after-hours trading, reflecting a stock price set at $5,211.07 at the time of reporting.
Future Outlook
Management plans to discuss further details from the quarter during a scheduled conference call, providing insights into future strategies and potential market directions.
Frequently Asked Questions
What were Booking Holdings' Q4 revenue and earnings?
Booking Holdings reported Q4 revenue of $5.47 billion and adjusted earnings of $41.55 per share.
How much cash flow did Booking Holdings generate?
The company generated approximately $700 million in operating cash flow and $600 million in free cash flow during the quarter.
What is the dividend declared by Booking Holdings?
Booking Holdings declared a cash dividend of $9.60 per share, increased from $8.75.
How much stock has Booking Holdings repurchased?
The company repurchased $1.1 billion of its common stock in Q4, with $7.7 billion remaining in its share repurchase program.
What technology is Booking Holdings investing in?
Booking Holdings is focusing on Generative AI technology to enhance value for travelers and partners in the long-term.
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