Expedia Group (EXPE) Stock Gains as Third Quarter Earnings Top Estimates

TLDR

• Expedia upgraded its 2025 revenue growth forecast to 6-7% from 3-5% following a strong third-quarter earnings beat.
• The company posted adjusted earnings of $7.57 per share, surpassing analyst expectations of $6.92 per share.
• B2B segment bookings rose 26% to $9.38 billion, while direct-to-consumer bookings increased 7% to $21.34 billion.
• Asia showed the strongest regional performance with room nights growing more than 20% year-over-year.
• Pre-market trading saw shares rise 16% after the earnings announcement on Friday.

Expedia reported third-quarter earnings that beat Wall Street forecasts. The Seattle-based travel platform posted adjusted earnings of $7.57 per share.

Analysts expected $6.92 per share. The results came in nearly 10% above consensus estimates.

Third-quarter revenue totaled $4.41 billion. This topped projections and grew from $4.06 billion in the prior-year period.

Expedia Group, Inc., EXPE

The strong quarter prompted management to revise annual guidance upward. The company now projects 2025 revenue growth between 6% and 7%.

Previous guidance ranged from 3% to 5%. Shares responded with a 16% jump in pre-market trading Friday.

B2B Division Powers Quarterly Results

The business-to-business segment posted impressive gains. Bookings in this division climbed 26% to reach $9.38 billion.

This segment caters to corporate travel managers, offline agents, and financial institutions. The growth reflects continued recovery in business travel spending.

The direct-to-consumer segment also showed solid performance. Bookings rose 7% to $21.34 billion across platforms including Hotels.com and Vrbo.

Combined gross bookings hit $30.73 billion for the quarter. That marks 12% growth compared to last year’s third quarter.

Expedia has beaten earnings forecasts in three of the last four quarters. The company also exceeded revenue estimates three times during that stretch.

Regional Performance Varies by Market

Domestic bookings grew at the fastest pace in three years. U.S. room nights increased by high single digits during the quarter.

International markets showed even stronger momentum. Asia led all regions with room night growth exceeding 20%.

The data highlights uneven recovery rates across global markets. Different regions continue bouncing back at different speeds.

The company noted it’s monitoring the ongoing government shutdown. The political standoff has become the longest in U.S. history.

Expedia stock has risen 14.8% this year. That trails the S&P 500’s 15.6% gain over the same timeframe.

Forward-Looking Estimates

Analysts project $2.85 per share for the upcoming quarter. Revenue estimates stand at $3.27 billion for the period.

Full-year expectations call for earnings of $14.33 per share. Annual revenue estimates total $14.34 billion.

The company holds a Zacks Rank #2 rating. This indicates expectations for near-term outperformance based on positive earnings revision momentum.

The broader Internet-Commerce sector ranks in the bottom 41% of industries tracked by Zacks. Historical data shows top-ranked industries beat bottom-ranked ones by more than 2-to-1.

This marks the third time in four quarters Expedia has delivered an earnings surprise. The previous quarter showed a 2.42% beat when the company posted $4.24 per share versus $4.14 expected.

Management’s earnings call will provide additional insight into quarterly performance. Investor focus will likely center on commentary about the raised revenue guidance and regional booking trends.

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