Key takeaways
- Expedia shares soared 18% on Friday after posting better-than-expected results and announcing a share buyback plan as travel demand surged.
- The company set a revenue record as gross bookings and gross accommodation bookings increased from the previous year.
- Expedia’s board of directors approved a $5 billion share buyback plan. The company has already bought back $1.8 billion worth of shares this year.
Rising travel demand lifted Expedia Group’s (EXPE) sales to an all-time high and the online travel site announced a new share buyback plan. Shares rose more than 18% on Friday following the news.
Expedia reported third-quarter fiscal 2023 earnings per share (EPS) of $5.41, significantly above estimates. Revenue rose 9% from a year earlier to $3.93 billion, also higher than expected.
Gross bookings increased 7% to $25.69 billion. Gross lodging bookings increased 8% to $18.5 billion and were the largest of any third quarter in the company’s history.
CEO Peter Kern noted that while travel spending in North America and Europe remained stable, the Asia-Pacific and Latin America regions showed stronger growth. He said the quarterly results “reflect the resilience of travel demand and the continued improvements resulting from the execution of our strategy.” Kern added that the company is “well positioned to further accelerate our business and drive greater returns for shareholders.”
Expedia also announced that the board approved another $5 billion share buyback program. The company noted that it has already bought back $1.8 billion of its shares this year.
Following Expedia’s earnings report, Wedbush raised its stock price target to $115 from $108.
With Friday’s gains, Expedia Group shares have added more than a quarter of their value in 2023.
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