Booking Holdings, the online travel company that owns brands such as Booking.com, Agoda, and Priceline, reported better-than-expected earnings for the third quarter of 2019. The company reported Non-GAAP EPS of $11.60, beating analysts’ expectations by $0.86. However, the company’s revenue of $5.04 billion missed analysts’ expectations by $60 million.
The company’s gross travel bookings for the quarter were $25.4 billion, up 4% from the same period in the previous year. The company’s room nights grew by 10%, while rental car days were down 8% and airline tickets were down 3%.
Booking Holdings saw strength in its domestic and European operations, with both regions seeing an increase in room nights and higher revenue per room night. However, the company’s Asian operations saw a decline in room nights and lower revenue per room night.
The company’s adjusted operating income for the quarter was $2.2 billion, up 4% from the same period in the previous year. The company also announced it is increasing its share repurchase program by $1 billion.
The company said it expects its fourth-quarter revenue to be between $2.9 billion and $3.0 billion, which is below analysts’ expectations of $3.05 billion. The company expects its Non-GAAP EPS for the fourth quarter to be between $19.25 and $19.85.
Booking Holdings CEO Glenn Fogel said in a statement, “We delivered solid results with growth in room nights booked accelerating sequentially. As we look forward, we remain focused on executing against our priorities, investing in growth and providing the best possible experiences to customers and partners.”
The online travel industry has faced challenges in recent years, with increased competition from companies such as Airbnb and Google. Booking Holdings has sought to diversify its offerings, recently acquiring restaurant reservation platform OpenTable and launching a flight booking tool.
Overall, Booking Holdings’ third-quarter earnings beat analysts’ expectations, with strength in its domestic and European operations offsetting weakness in its Asian operations. The company’s focus on expanding its offerings and investing in growth will be crucial in remaining competitive in the online travel industry.