Expedia Group has announced a turn to profitability in the second quarter, attributed to a continued rebound in the travel industry. However, lodging bookings experienced a decline compared to the previous quarter.
The company’s shares fell by 11% to $105.16 in pre-market trading.
In Q2, Expedia Group recorded a net profit of $385 million, equivalent to $2.54 per share. This marks a significant improvement from the loss of $185 million ($1.17 per share) during the same period last year.
Excluding one-time items, the adjusted earnings per share for the company was $2.89. According to FactSet, analysts had projected lower adjusted earnings per share of $1.89.
Despite revenue growth of 5.6% to $3.36 billion, Expedia Group fell slightly short of analysts’ expectations of $3.37 billion.
While lodging bookings increased from $17.87 billion to $19.17 billion in comparison to the previous year, there was a decline from the previous quarter’s $21.06 billion.
Expedia Group has reaffirmed its guidance for the entire year.
Conclusion
Expedia Group’s second-quarter results reflect a promising recovery in the travel industry, leading to a profit. However, lodging bookings experienced a decrease in comparison to the previous quarter. The company remains optimistic about its outlook for the year ahead.
