In its earnings release, Booking Holdings revealed that its total revenue came in at just under $2.29 billion, representing a 19% year-over-year decline. Non-GAAP (adjusted) net income fell at a much steeper rate, landing at $156 million ($3.77 per diluted share), versus the Q1 2019 result of $508 million.
While the company's revenue was only slightly under the average analyst projection of $2.31 billion, its per-share profitability came in well under the average $6.10 modeled by those prognosticators.
The reason for the declines was obvious. As Booking Holdings stated in its earnings release, "The COVID-19 pandemic has profoundly impacted our Company and the entire travel industry."
The travel giant added that, "We have taken immediate steps to stabilize the Company by reducing costs and bolstering our liquidity position." In recent weeks, Booking Holdings has floated new debt to shore up its finances.
Previously, the company withdrew its full-year 2020 guidance, citing the pandemic's withering effect on the global travel industry. This has come to a near standstill due to "shelter in place" and social distancing measures undertaken in many places throughout the world. Booking Holdings is very active in both the transportation and lodging segments of the travel sector.
Much of this seems to have already been priced into the stock. Shares of Booking Holdings fell by a relatively light 0.9% on Friday, although other consumer goods companies and the main equity indexes rose at healthy rates on the day.