Can ABNB sustain its EPS growth into Q1 2025?
3/29/2025 04:41pm
**Airbnb's EPS growth into Q1 2025 is likely to be challenging**. Here's why:
1. **Expected EPS Decline**: Analysts predict that Airbnb will report an EPS of $0.25 in the upcoming quarter, which would signify a 39.02% decline compared to the same quarter last year. This indicates a potential downturn in profitability.
2. **Revenue Growth Expected**: Despite the expected EPS decline, analysts anticipate a 5.49% increase in revenue, reaching $2.26 billion. This suggests that while the company may not sustain EPS growth, it could maintain or slightly improve its top-line performance.
3. **Market Performance and Sentiment**: Airbnb's stock has experienced a decrease of 8.24% over the last month, underperforming the Consumer Discretionary sector's loss. The company's P/E ratio is lower than the industry average, which could imply that investors are cautious about its future performance.
4. **Earnings Estimate Revisions**: There has been a slight increase in the consensus EPS estimate for the current fiscal year, indicating some optimism among analysts. However, the short-term focus should be on the potential EPS decline in Q1 2025.
In conclusion, while Airbnb may show resilience in revenue growth, the likelihood of sustaining EPS growth into Q1 2025 is low due to the expected decline in profitability. The company's performance will be closely watched to determine if it can rebound from the current downturn.