Booking Holdings reported a higher profit and rising revenue in the second quarter, citing solid travel demand despite the war in Iran.
"Despite continued geopolitical and macroeconomic uncertainty during the second quarter, the underlying desire to travel remained resilient," Chief Executive Officer Glenn Fogel said. The company added that demand has remained resilient so far in the third quarter, supported by domestic travel trends.
The online travel agency had cut its full-year outlook in April, projecting that travel demand in some regions would suffer from the conflict in the Middle East. On Tuesday, it reaffirmed full-year guidance for revenue to grow by a high-single-digit rate and adjusted earnings per share to grow by a low- to mid-teens percentage.
The outlook assumes that softer international travel demand, high flight ticket prices, and lower flight capacity on some routes as a result of the Middle East conflict will persist throughout the third quarter, the company said.
Booking on Tuesday reported a profit of $1.95 billion, or $2.53 a share, in the quarter ended June 30. That compares with a profit of $895 million, or $1.10 a share, a year earlier.
Stripping out certain one-time items, adjusted earnings were $2.54 a share. Analysts polled by FactSet were expecting $2.43 a share.
Revenue rose to $7.35 billion from $6.8 billion, topping analyst estimates of $7.19 billion.
For the current third quarter, the company said it expects revenue to grow between 4% and 6%. Analysts currently expect $9.71 billion in revenue, representing 7.8% growth.
Shares were up 3.5% to $201.06 in after-hours trading on Tuesday.
