Article Summary
Shares of Expedia Group dropped more than 8% in after-hours trading following a Q1 earnings report that missed revenue estimates and cited weaker-than-expected demand in the US. The online travel company reported $2.98 billion in revenue, up 3% year-over-year, but falling short of the anticipated $3.01 billion. Expedia’s gross bookings increased by 4% to $31.4 billion, with B2B bookings up by 14%. Economic uncertainty and a potential impact from the decline in overseas travel to the US post-Trump election may pose challenges for the company and other online travel platforms.
What This Means for You
- Investors should stay cautious with Expedia’s stock given the earnings miss and softer demand in the US market.
- Consumers might notice a slight increase in travel prices if the decline in US tourism continues, affecting overall demand and competition among travel platforms.
- Consider exploring alternative accommodation options (e.g. Airbnb, VRBO) if the big online travel companies experience a slowdown or price increase.
- Expect Expedia to adapt to changing economic conditions and adjust their strategies to cope with decreased demand and consumer spending.
Original Post
Shares of Expedia Group were down more than 8% in after-hours trading Thursday after the Seattle company missed expectations for its quarterly earnings and cited weaker-than-expected demand in the US.
- Expedia reported $2.98 billion in revenue, up 3% year-over-year, missing estimates of $3.01 billion. The company reported earnings per share of $0.40, which topped expectations.
- Expedia and other online travel companies are navigating potential impact from economic uncertainty. Overseas travel to the US has reportedly declined since President Trump took office in January. There are also concerns about slower consumer spending.
- Expedia’s gross bookings were up 4% to $31.4 billion. B2C bookings were up 1%, while B2B bookings were up 14%.
Key Terms
- Expedia Group
- Q1 Earnings
- Revenue Estimates
- Online Travel Companies
- Economic Uncertainty
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