Earnings Results: Expedia shares tumble as Q4 results miss, as travel demand runs into harsh weather

by | Feb 9, 2023 | Stock Market

Shares of Expedia Group Inc. sank after hours on Thursday after the online travel-booking platform reported fourth-quarter results that missed expectations, as solid demand ran into harsh weather — although management said trends had improved since. The online travel-booking platform reported fourth-quarter net income of $175 million, or $1.11 a share, compared with $395 million, or $1.70 a share, in the same quarter in the prior year. Revenue climbed 15% to $2.62 billion, compared with $2.28 billion in the prior-year quarter.

On an adjusted basis, Expedia
earned $1.26 a share, compared with $1.06 a year earlier. Gross bookings were $20.51 billion, up 17% from the same quarter in a year earlier. Analysts polled by FactSet expected Expedia to report adjusted earnings per share of $1.71, on revenue of $2.69 billion. They expected gross bookings of $20.96 billion. For the first quarter, those analysts expect Expedia to earn 22 cents a share, on sales of $2.66 billion. For the full year, they expect earnings per share of $9.43, with revenue of $12.74 billion. “While our Q4 results were negatively impacted by severe weather, demand was otherwise strong and accelerating, and has been markedly stronger since the start of the year,” Chief Executive Peter Kern said in a statement. He added that Expedia had begun the year with “record app usage and member counts, led by Expedia U.S.” Shares immediately fell more than 7% after hours, but closed the extended session …

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