Airbnb Q3 Earnings Preview: What To Know Before Checking This Stock

California-based online marketplace and hospitality service company, Airbnb Inc ABNB, is scheduled to report its third-quarter (Q3) earnings after the close on Nov. 1.

Airbnb is a well-known travel disruptor of the traditional hospitality industry. Its platform was the first to provide a way for individuals to share their homes and earn income as hosts, and for travelers to find unique and often more affordable accommodations than traditional hotels.

Q3 Analysts’ Focus: Airbnb’s distinctive business offering and growing revenues help it gain analyst favor. The company’s revenues, per their income statement, have been growing at an impressive 20%+ year-on-year clip over the last three quarters. Growth is expected to continue on the back of the efforts focusing on underpenetrated markets in Asia — Japan, Korea, and Asia Pacific to begin with.

Airbnb is also cash flow rich, generating free cash flow higher than adjusted EBITDA. However, being in the hospitality sector, the company remains exposed to economic slowdown and recessionary fears.

Read Also: James Manyika To Join Airbnb’s Board of Directors

Ratings & Consensus Estimates: For Q3, Wall Street analysts are expecting Airbnb to report $1.96 in EPS and $3.18 billion in revenue. For the fiscal year ending December 2023, the company is expected to report $3.87 in EPS and $9.84 billion in revenue.

Recent analyst reports from 43 analysts over the last 90 days rate the stock a Hold with an average consensus price target of $141.84.

Over the past month, we've seen many sell-side analysts issue Neutral and Hold ratings for Airbnb stock. James Lee of Mizuho with a Neutral rating, lowered his price target from $150 to $130 while Aaron Kessler of Seaport Global initiated coverage on ABNB stock with a Neutral rating.

Price Action: The stock is down about 13% over the past month and was trading at $118.29 at the time of market close on Tuesday.

Read Next: Bill Gross Sees ‘Extraordinary Long-Term Value’ in Regional Banks: 3 ETFs To Watch