Earnings Results: Expedia optimistic about travel recovery, boosting stock despite mixed results

Daily Trade

Predicting a “brighter year ahead,” Expedia Group Inc. said Thursday that the impact of the omicron variant on travel was not as severe as previous COVID-19 disruptions.

Expedia Group’s
EXPE,
+0.29%

total gross bookings were $17.5 billion in the fourth quarter, down 25% compared with the fourth quarter of 2019. The company said that was the lowest quarterly decline last year, when compared with pre-pandemic numbers.

“The travel industry and traveling public prove more resilient with each passing wave, and we continue to expect a solid overall recovery in 2022, barring a change in the trajectory of the virus,” Expedia Chief Executive Peter Kern said in a statement.

Despite slightly missing revenue expectations, Expedia shares rose about 4.75% after hours, after increasing 0.3% in the regular session to close at $197.52. 

The company reported fourth-quarter net income of $276 million, or an adjusted $1.06 a share, adjusted for stock-based compensation and other costs. That compared with a loss of $412 million, or $2.64 a share, in the year-ago period. Revenue rose to $2.28 billion from $920 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of 80 cents a share on revenue of $2.29 billion.

For the full year, Expedia reported $72.43 billion in gross bookings and $8.6 billion in revenue. It posted a net loss of $269 million, or $1.80 a share. Adjusted earnings were $1.65 a share. Analysts had expected earnings of $1.33 a share on $8.63 billion in revenue.

Expedia stock has risen 9.3% year to date, compared with the S&P 500 Index
SPX,
-1.81%
,
which has fallen 5.5% so far this year.

Articles You May Like

Three Mile Island restart could mark a turning point for nuclear energy as Big Tech influence on power industry grows
5 More Trump Stocks to Trade
Nvidia’s stunning 2024 return has all the makings of a stock-market dynasty
Dental supply stock rallies on theory RFK’s anti-fluoride stance will prompt more dentist visits
Activist ValueAct is poised to trim fat and help boost profits at Meta Platforms. Here’s how