Booking Holdings Inc. (NASDAQ:BKNG) shares were trading lower in premarket activity Wednesday after the company issued second-quarter guidance below Wall Street expectations.

Earnings Snapshot

The company reported first-quarter adjusted earnings of $1.14 per share, beating analyst estimates of $1.07. Revenue totaled $5.532 billion, ahead of the consensus estimate of $5.516 billion.

Revenue increased 16% year over year, or about 10% on a constant-currency basis. Room nights grew 6%, with the Middle East conflict estimated to have reduced growth by approximately 2 percentage points.

Gross bookings rose 15% year over year, or about 8% in constant currency, with the conflict affecting bookings in line with room night trends.

Adjusted EBITDA increased 19% to $1.3 billion, while margin expanded to 23.3% from 22.9% a year earlier.

Chief Executive Glenn Fogel said underlying ...