By Shares of Expedia Group Inc. (NASDAQ: EXPE) took a hit, falling 11% in premarket trading on Thursday, following the release of their second-quarter earnings report. While the company’s profit exceeded expectations, revenue and bookings did not meet projections.
Strong Profit Performance
Expedia Group reported a significant turnaround in net income, going from a loss of $185 million last year to $385 million this quarter. This equates to a per-share earnings of $2.54, compared to a loss of $1.17 a share in the same period last year. After adjusting for nonrecurring items, the company’s earnings per share came in at $2.89, surpassing the FactSet consensus of $2.35.
Revenue and Bookings Fall Short
Despite the positive profit results, Expedia Group fell short on revenue and bookings. The company’s revenue grew by 5.6% to reach $3.356 billion, slightly below the FactSet consensus of $3.373 billion. Additionally, while booked hotel room nights showed an increase of 8.7% to 89.7 million, it fell short of the projected 90.5 million. Gross bookings also missed Wall Street expectations, rising only 4.5% to $27.32 billion, instead of the projected $28.22 billion.
Travel Demand Remains Strong
Despite revenue and booking shortcomings, Expedia Group emphasized that travel demand remained strong throughout the quarter. This positive sentiment is reflective of the company’s overall performance.
As of Wednesday, Expedia Group’s stock has increased by 34.7% year-to-date, outperforming the S&P 500, which has gained 17.6%.
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