Expedia soared on roaring travel demand, beating expectations

Expedia Group (NASDAQ:EXPE) stock shot up 10% in Thursday’s ‘after-hours’ trade, adding $12.53 to $130.50, as sustained demand for international drove second-quarter profit beyond Wall Street expectations.

Revenue for the quarter was up 6% to $3.56 billion, easing above a consensus analyst forecast of $3.53 billion.

Profit came in at $386 million, or $2.80 per share, compared to $385 million and $2.54 a year ago. Earnings (adjusted) per share meanwhile was stated at $3.51, comfortably beating analysts' forecast pitched at $3.18.

Expedia said that its gross bookings were up 6% to $28.8 billion, including lodging gross bookings up 8% to $20.7 billion – including an 11% increase in hotel bookings specifically.

“Our second quarter results came in at the high end of our expectations,” chief executive Ariane Gorin said.

“We're pleased with our momentum and the sequential improvement in our consumer brands.”

Nevertheless, looking ahead, Expedia was short of being exuberant as Gorn warned of a more challenging macro environment and noted a softening of travel demand in the month of July.

Accordingly, as commentary, Gorin said Expedia would be adjusting expectations for the rest of the year.

In after-hours trading, Expedia shares advanced $11.52 or 9.77% priced at $129.49 – adding to a 4.18% gain in New York’s regular trading session in which the stock closed at $117.97.