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Expedia Opens 16% Higher After Impressive Q3 Earnings, $5B Stock Buyback
Expedia posted record-high Q3 revenue of $3.93 billion and reiterated upbeat full-year outlook.
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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.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
