B2B travel services company Global Business Travel (NYSE: GBTG) will be reporting results tomorrow before market hours. Here’s what to expect.
Global Business Travel beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $591 million, up 7.7% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance slightly topping analysts’ expectations but full-year revenue guidance missing analysts’ expectations significantly. It reported 6.9 billion transaction value, up 9.5% year on year.
Is Global Business Travel a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Global Business Travel’s revenue to grow 3.8% year on year to $633.3 million, slowing from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Global Business Travel has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Global Business Travel’s peers in the finance and HR software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Paylocity delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 2.9%, and Paychex reported revenues up 4.8%, in line with consensus estimates. Paylocity traded down 3.6% following the results while Paychex was up 5.4%.
Read our full analysis of Paylocity’s results here and Paychex’s results here.
There has been positive sentiment among investors in the finance and hr software segment, with share prices up 15.5% on average over the last month. Global Business Travel is up 6.5% during the same time and is heading into earnings with an average analyst price target of $10.43 (compared to the current share price of $6.88).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
