Expedia forecasts downbeat fourth-quarter revenue as geopolitical tensions weigh
EXPE•Expedia forecast fourth-quarter revenue of $3.69 billion to $3.75 billion, with the midpoint below analysts’ $3.74 billion estimate, and its shares fell about 6% in extended trading. It raised its annual gross bookings and revenue forecasts and reported third-quarter revenue and adjusted profit above estimates.
1. Fourth-quarter outlook
Expedia projected fourth-quarter revenue of $3.69 billion to $3.75 billion, below analysts’ $3.74 billion estimate at the midpoint. CEO Ariane Gorin said the forecast reflected the US midterm elections and unrest in the Middle East and Europe. The company’s shares fell about 6% in extended trading.
2. Annual forecasts raised
Expedia raised its annual gross bookings forecast to $131.4 billion to $131.9 billion, from $129.5 billion to $130.8 billion. It now expects annual revenue of $16.37 billion to $16.43 billion, compared with its previous forecast of $16.05 billion to $16.22 billion.
3. Third-quarter results
Third-quarter adjusted profit was $9.39 per share, above analysts’ $8.89 estimate. Revenue rose about 12% to $4.94 billion for the quarter ended September 30, beating the $4.74 billion estimate. Gorin said US consumers were strong in domestic travel and travel to Europe and Asia.
