Expedia takes off after Q2 earnings beat and boost to full-year guidance
The travel giant raised its revenue and bookings outlook as B2B strength and international demand help offset US softness.
Expedia shares jumped nearly 5% Thursday morning after the travel company topped second-quarter estimates and raised its full-year forecast as bookings pick up abroad.
Adjusted earnings per share came in at $4.24, ahead of analysts’ expectations of $3.97. Revenue climbed to $3.78 billion, topping the Street’s $3.70 billion forecast and landing above the company’s guidance for a range of $3.66 billion to $3.73 billion.
Booked room nights rose 7% from a year ago, thanks mostly to stronger demand outside the US. Total gross bookings were up 5%, driven by a 17% jump in Expedia’s business-to-business segment. For the full year, Expedia now expects revenue and gross bookings to grow between 3% and 5%, up from its earlier forecast of 2% to 4% for both. For the current quarter, Expedia expects revenue growth between 4% and 6%, the midpoint above analysts’ estimate for 4% growth.
Wall Street is warming up, too: Piper Sandler kept its “underweight” rating on the stock but raised its price target to $190 from $135. Analysts called out improved execution across segments and noted that high-end US consumers are still spending, even as lower-income travelers pull back.
Shares of Expedia are up 66% over the past year.
