MakeMyTrip (MMYT -1.16%) stock has posted big gains following the release of its second-quarter earnings results. The India-based travel booking company closed out last week's trading up 18.2%, according to data from S&P Global Market Intelligence.
Easing travel restrictions helped power MakeMyTrip's earnings performance in Q2 significantly above the market's expectations. The company published its latest quarterly earnings on Oct. 26 and posted non-GAAP (adjusted) earnings per share of $0.09 on revenue $67.5 million, while the average analyst estimate guided for an adjusted per-share loss of $0.13.
With pandemic-related conditions generally easing, MakeMyTrip's hotels and packages, airline ticketing, and bus ticketing segments posted strong rebounds in the second quarter. Total revenue in the period was up roughly 220% year over year, and total bookings through the company's platforms in the period surged to $734.1 million -- up from $213 million in this year's first quarter and $286.7 million in last year's second quarter.
Declining COVID-19 cases in India should be a tailwind for MakeMyTrip in the near future. In response to the trend, the U.K. eased quarantine requirements for travelers from India on Oct. 11, and the U.S. is set to begin allowing entry for fully vaccinated Indian travelers on Nov. 8.
The travel industry appears to be on track for a strong resurgence, and MakeMyTrip's leading position in the Indian market has it poised to power and benefit from the recovery. The company does face rising competition, but it also has a leading brand and ample resources to continue building its business and pursuing worthwhile acquisitions. The company closed out the second quarter with cash and short-term equivalents totaling $489 million.
MakeMyTrip now has a market capitalization of roughly $3.3 billion and is valued at approximately eight times this year's expected sales and 144 times expected earnings.