Shares of online travel platform, Expedia (NASDAQ: EXPE) were down in pre-market trading on Friday after disappointing Q4 results. The company reported adjusted earnings of $1.26 per share, up 19% year-over-year but fell short of consensus estimates of $0.22.
While revenues increased by 14.9% year-over-year to $2.62 billion, they still missed analysts’ expectations by $80 million. Gross bookings soared by 17% year-over-year to $20.5 billion but failed to meet the consensus expectations of $21.1 billion.
The company reduced its net debt by $2.2 billion during FY22, resulting in reducing its leverage significantly. In FY22, EXPE bought back stock worth $500 million.
Peter Kern, Vice Chairman, and CEO, Expedia Group commented, “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.”
Despite the dismal Q4 results, JMP Securities analyst Nicholas Jones remained sidelined on the stock with a Hold rating. The analyst commented, “We do not view 4Q22 results or 2023 commentary as thesis changing, and we look for EXPE to show ongoing progress toward stabilizing market share and for more evidence, it is executing against its high-LTV customer acquisition strategy as it rolls out its unified loyalty program, One Key, later this year.”
Overall, Wall Street remains cautiously optimistic about EXPE stock with a Moderate Buy consensus rating based on seven Buys, five Holds and one Sell.