Expedia Stock Rises on Better-Than-Expected Profit and Sales

by

Key Takeaways

  • Expedia Group’s stock jumped after the company exceeded earnings, revenue, and gross bookings forecasts on a big boost from international sales.
  • The online travel site reported non-U.S. points of sale revenue jumped 13%.
  • Expedia Group raised its full-year guidance.

Expedia Group (EXPE) shares saw a double-digit jump during premarket trading and were up about 5% shortly after the opening bell, when the online travel site reported better-than-anticipated results and lifted its guidance on rising international demand for its services.

The company posted second-quarter adjusted earnings per share of $4.24, $0.29 above the average estimate of analysts surveyed by Visible Alpha. Revenue gained 6% to $3.79 billion, and gross bookings were up 5% to $30.41 billion. Both also beat forecasts.

Revenue from points of sale outside the U.S. rose 13% to $1.48 billion. U.S. points of sale revenue added 3% to $2.03 billion. Booked room nights grew 7% to 105.5 million.

CEO Ariane Gorin said Expedia exceeded its own expectations “while navigating a dynamic environment.” She noted the quarterly performance “was driven by continued strength across B2B and Advertising and further progress on our key priorities.”

The company now sees full-year revenue and gross bookings 3% to 5% higher, compared to its earlier outlook of an increase of 2% to 4% for each. It predicts EBITDA margin expansion of 100 basis points (bps), versus the prior 75 to 100 bps guidance. 

Shares of Expedia Group opened today’s session basically flat year-to-date.

TradingView


Source link

Leave a Comment