Airbnb expected to solidify its position as travel business rebounds

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Earnings preview: Analysts estimate that Airbnb has at least half of the alternative-lodging market as pandemic travel restrictions ease and boost big online-travel companies.

Cowen analysts, who say “the brand is synonymous with the category,” estimate that Airbnb ABNB, +2.31% commands more than 50% of alternative-lodging bookings such as home and apartment rentals. They also wrote in a note to investors that they estimate the alternative category has risen from comprising 24% of global lodging dollars pre-pandemic to 33% today.

Naved Khan, analyst for Truist Securities, said in a note to investors Monday that he sees the “European travel recovery in 3Q a positive for Airbnb, given that the company generated ~40% of its revenue from EMEA in 2019 .”What to expect Earnings: Analysts surveyed by FactSet on average expect Airbnb to post net income of 72 cents a share, or $477 million. The average expectation of analysts, hedge-fund managers, executives and more as gathered by Estimize is 75 cents a share.

Stock movement: Airbnb’s shares have risen all three times after it reported earnings since it went public last December. Airbnb stock is up nearly 18% so far this year through Monday’s session, while the S&P 500 index SPX, +0.18% has gained more than 22%. Previous earnings coverage: Airbnb outperforms pre-pandemic results, but forecast suggests it may not last

 

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