Expedia Posts Mixed Q4 Results; Shares Pop 5.1%

Online travel shopping company Expedia Group, Inc. (NASDAQ: EXPE) has reported mixed results for the quarter ended December 31, 2021, as earnings surpassed but revenues missed estimates.

Following the results, shares of the company rose 5.1% to close at $207.50 in Thursday’s extended trading session.

Revenue & Earnings

Expedia reported quarterly revenues of $2.3 billion, up 148% year-over-year. The primary driver of this growth was 146% and 159% year-over-year rise witnessed in retail and B2B revenues, respectively. The figure, however, failed to surpass the consensus estimate of $2.31 billion.

The company’s quarterly earnings per share (EPS) stood at $1.06, which compares favorably with a loss of $2.64 per share reported in the previous year. Further, the figure topped the consensus estimate of $0.70 per share.

In other operating metrics, Expedia reported gross bookings of $17.46 billion in the fourth quarter, up 131% from the same quarter last year. Further, stayed room night growth was 74% versus a decline of 61% last year.

The company reported an adjusted EBITDA of $479 million during the quarter against an adjusted EBITDA loss of $160 million last year.

CEO Comments

The CEO of Expedia, Peter Kern, said, “While we experienced yet another significant travel disruption from Covid this quarter, we were pleased to see that the impact was less severe and of shorter duration than previous waves. Notably, 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.”

Stock Rating

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 7 Holds. The average Expedia stock prediction of $192 implies that the stock has downside potential of 2.8% from current levels. Shares have gained 31.8% over the past year.

Positive News Sentiment

News Sentiment for Expedia is Very Positive based on 29 articles over the past seven days. 100% of the articles have Bearish sentiment, compared to the sector average of 62%.

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