Expedia shares slide after below-par quarterly revenue forecast fuels concerns
EXPE•Expedia shares fell nearly 7% in premarket trading after it forecast fourth-quarter revenue of $3.69 billion to $3.75 billion, below the $3.74 billion analyst average at the midpoint. The company cited election results and unrest in Europe and the Middle East for its dour outlook.
1. Revenue outlook disappoints
Expedia shares slid nearly 7% in premarket trading after the travel booking firm forecast fourth-quarter revenue of $3.69 billion to $3.75 billion. The forecast midpoint was below analysts’ average estimate of $3.74 billion.
2. Market concerns
Expedia’s finance chief said U.S. midterm election results and unrest in Europe and the Middle East led to the dour forecast. Baird analysts called the softer outlook a surprise, while J.P. Morgan said the growth deceleration was “transitory” but could raise concerns.
3. Travel sector context
Expedia shares had gained about 12% this year through Wednesday’s close, outperforming Booking Holdings, down 20%, and a Dow Jones U.S. travel and leisure index that was little changed. Other online travel sites and hotel chains have relied on strong domestic demand to offset weakness in the Middle East.
