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Expedia Group beat expectations in the third quarter and raised its full-year outlook Wednesday, saying travelers kept booking through its sites despite worries about a slowdown.
Revenue rose 12% to $4.938 billion and gross bookings grew 11% to $34.008 billion for the quarter ended September 30, the Seattle company reported. Adjusted earnings came in at $9.39 a share, about 50 cents above analyst estimates, with revenue roughly $200 million ahead of projections, Seeking Alpha reported.
Travelers booked 115.7 million room nights through Expedia’s sites, which include Expedia.com, Hotels.com and Vrbo, up 7% from a year earlier. Bookings from business partners jumped 19%, and adjusted EBITDA rose 17% with margins widening.
“We exceeded the high end of our guidance in the quarter, reflecting resilient travel demand and strong execution,” CEO Ariane Gorin said.
The outlook moved up. Expedia now expects full-year revenue of $16.37 billion to $16.43 billion, growth of 11% to 12%, and full-year gross bookings of $129.5 billion to $130.8 billion. For the fourth quarter it guided bookings of $27.9 billion to $28.4 billion.
Shares fell about 6% in extended trading as the fourth-quarter revenue forecast of $3.69 billion to $3.75 billion carried a midpoint just under the $3.74 billion analysts expected, Reuters reported. Gorin tied the moderation to the U.S. midterm elections and unrest in the Middle East and Europe.
The company also bought back about 2 million shares for $576 million in the quarter and declared a quarterly dividend of 48 cents a share, payable December 10.
JBizNews Desk | Seattle
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