Expedia Opens 16% Higher After Impressive Q3 Earnings, $5B Stock Buyback

Expedia (NASDAQ: $EXPE) shares jumped over 15% at the market open on Friday, a day after the travel technology provider posted impressive earnings and revenue growth for Q3 2023. Furthermore, the company also announced a $5 billion stock buyback program, driving the stock price rally further.

Expedia’s Quarterly Revenue Soars to Record High Amid ‘Resilience of Travel Demand’

Expedia Group posted better-than-expected Q3 2023 earnings results on Thursday, driven by strong travel demand. The report sent the travel technology firm’s shares 15.8% higher at the opening bell on Friday.

Namely, Expedia reported third-quarter earnings per share (EPS) of $5.41, representing a year-over-year (YoY) growth of 33%. The company’s revenue was $3.93 billion, a record quarterly figure. YoY, revenue increased by 9%. 

EPS and revenue numbers exceeded Wall Street’s expectations of $5 per share and $3.86 billion, respectively. Expedia said the number of booked room nights in the quarter soared 9% from a year earlier to 89.3 billion while lodging gross bookings hit $18.5 billion, a record high for third quarters. 

Net income came in at $425 million for the three-month period, while adjusted net income hit $778 million – the highest for any quarter. 

“Our strong third-quarter results with record revenue and profitability came in ahead of our guidance and reflect the resilience of travel demand.”

– Expedia CEO Peter Kern said in the earnings release.

To an even more pleasant surprise for Expedia investors, the Seattle, Washington-based firm approved a $5 billion stock repurchase program. Expedia already bought back $1.8 billion of its stock in 2023. 

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Expedia Stock Hits 3-Month High

Today’s rally provides a significant boost for Expedia’s stock, which now sits at a 3-month high. Although the company’s shares were already in the green territory, its year-to-date gains now stand at more than 25%, outperforming the broader market.

Expedia’s recovery underscores the resurgence in travel demand during the post-pandemic era. As a result, the firm’s margins have improved significantly in recent years, bouncing back to pre-pandemic levels. 

Looking ahead, the company’s full-year guidance for double-digit topline growth and margin expansion remained unchanged. 

Do you see travel demand getting stronger in the near future? Let us know in the comments below.