Expedia stock jumped late Thursday after the online travel booking company reported second-quarter results that beat expectations. The tech firm also raised its sales guidance for the rest of the year.
Expedia said that it earned an adjusted $4.24 per share for the June-ended quarter, up 21% from a year earlier. That beat the $3.97 per share that analysts polled by FactSet were forecasting. Sales increased 6% to $3.79 billion compared to analyst estimates of $3.71 billion.
The gross booking value across Expedia's platforms – which include Hotels.com, Vrbo and Expedia.com – grew 5% to $30.41 billion. Analysts were looking for $29.81 billion, according to FactSet.
For the current quarter, Expedia said it expects sales growth of 4% at the midpoint of its range. Analysts were previously projecting sales would rise 3.5% for the September quarter. Expedia also raised its full-year revenue growth expectations to a range of 3% to 5%, compared to a previous 2% to 4%.
"We delivered a solid second quarter, surpassing our top and bottom line expectations while navigating a dynamic environment" Chief Executive Ariane Gorin said in a news release. "Our performance was driven by continued strength across B2B (business-to-business) and advertising and further progress on our key priorities."
The company touted 17% growth for total bookings in its enterprise offerings, which power travel booking offerings for other businesses such as credit card companies.
On the stock market today, Expedia stock rallied more than 16% to 217.90 in recent after-hours trades.
Expedia Stock: Strong Composite Rating
Prior to earnings, Expedia gained 1.33% in regular trading. Shares have gained 1.5% so far this year but 66% compared with 12 months ago. The stock's gains have slowed this year amid concerns about U.S. travel demand, particularly from international visitors. Expedia first warned investors about overall demand with its Q1 report.
Earnings from rival Airbnb on Wednesday beat expectations but ABNB stock fell on concerns about the costs of its expansion plans. Online travel agency Booking Holdings gave slightly cautious commentary on U.S.-related demand when it reported earnings last week.
Coming into the report, Expedia stock had an IBD Composite Rating of 92 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
