TLDR
- Expedia boosted 2025 revenue growth outlook to 6-7% after third-quarter earnings exceeded Wall Street projections by $0.65 per share.
- B2B bookings surged 26% to $9.38 billion, driven by corporate travel demand and business with financial institutions.
- Shares climbed 16% in pre-market trading after the company reported $7.57 adjusted earnings per share versus $6.92 expected.
- Asia led regional growth with room nights jumping over 20%, while U.S. growth hit a three-year high.
- Total gross bookings increased 12% year-over-year to $30.73 billion in the third quarter.
Expedia delivered third-quarter results that topped analyst expectations. The online travel company reported adjusted earnings of $7.57 per share.
Wall Street had projected $6.92 per share. The beat represents a 9.4% surprise over consensus estimates.
Revenue reached $4.41 billion for the quarter. This exceeded analyst forecasts and marked growth from $4.06 billion in the year-ago period.
The strong performance led management to raise guidance. Expedia now expects full-year 2025 revenue growth of 6% to 7%.
The previous forecast called for 3% to 5% growth. Investors responded positively, pushing shares up 16% in pre-market trading Friday.
Corporate Travel Fuels Revenue Beat
The B2B segment delivered outsized growth in the quarter. Bookings jumped 26% to $9.38 billion.
This division serves corporate travel managers, offline agents, and financial institutions. The results point to sustained business travel recovery.
Direct-to-consumer bookings also contributed to the quarter’s success. Platforms like Hotels.com and Vrbo generated $21.34 billion in bookings, up 7%.
Total gross bookings across all segments hit $30.73 billion. That represents 12% growth compared to the same quarter last year.
The company has now beaten earnings estimates in three of the past four quarters. It has also exceeded revenue projections three times during that span.
Geographic Markets Show Varied Performance
U.S. room nights posted the fastest growth rate in three years. The company reported high single-digit increases in domestic bookings.
International markets grew even faster. Asia led all regions with room night growth topping 20%.
The geographic data reveals where travel demand remains most robust. Different markets continue recovering at their own pace.
Expedia mentioned it’s watching the government shutdown closely. The political impasse has now become the longest on record.
Year-to-date, shares have gained 14.8%. The S&P 500 has risen 15.6% over the same period.
Analyst Outlook
The consensus estimate for the current quarter stands at $2.85 per share. Analysts expect revenue of $3.27 billion.
For the full fiscal year, projections call for earnings of $14.33 per share. Revenue estimates sit at $14.34 billion.
Expedia carries a Zacks Rank #2 rating. This suggests the stock should outperform the market near-term based on positive earnings revision trends.
The Internet-Commerce industry ranks in the bottom 41% of Zacks-tracked sectors. Research shows top-ranked industries outperform bottom-ranked ones by over 2-to-1.
The company’s earnings call will provide more details on the quarter and outlook. Management commentary typically influences how the market digests quarterly results.
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