February 20, 2024

Expedia shares sink after 2024 revenue warning on softening air fares


Shares of Expedia Group closed down 18% on Friday, their largest single-day drop in practically 4 years, after the online travel firm mentioned it anticipated 2024 revenue development charges to reasonable as air fares soften from post-pandemic highs.

The firm late on Thursday additionally mentioned Chief Executive Officer Peter Kern would step down from his place and get replaced by firm insider Ariane Gorin.

Expedia Group CEO Peter Kern

Peter Kern, vice chairman and chief govt officer of Expedia Group, speaks throughout the Bloomberg Technology Summit in San Francisco, California, US, on Wednesday, June 8, 2022. Expedia introduced Thursday Kern could be stepping down. (Photographer: David Paul Morris/Bloomberg by way of Getty Images / Getty Images)

Expedia shares snapped a four-day profitable streak and dragged down these of different journey companies following the warning. Booking Holdings, Tripadvisor and Airbnb fell between 1% and 4%.

Ticker Security Last Change Change %
EXPE EXPEDIA GROUP INC. 131.11 -28.36 -17.78%
BKNG BOOKING HOLDINGS INC. 3,758.18 -82.04 -2.14%
TRIP TRIPADVISOR INC. 21.71 -0.84 -3.73%
ABNB AIRBNB INC. 147.59 -2.94 -1.96%

“On a macro level, we expect travel demand to remain relatively healthy, but we expect growth rates across the world to decelerate,” outgoing CEO Kern mentioned on Expedia’s earnings name.

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Air journey revenue was additionally affected by the grounding of Boeing’s 737 Max 9 fleet, resulting in a number of cancellations impacting its Vrbo model.

“Overall, we see an ‘acceleration story’ that is decelerating with a CEO transition now in play; near-term setup looks challenging,” Wells Fargo analysts wrote in a notice.

“On a macro level, we expect travel demand to remain relatively healthy, but we expect growth rates across the world to decelerate,” outgoing CEO Kern mentioned on Expedia’s earnings name.

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Air journey revenue was additionally affected by the grounding of Boeing’s 737 Max 9 fleet, resulting in a number of cancellations impacting its Vrbo model.

“Overall, we see an ‘acceleration story’ that is decelerating with a CEO transition now in play; near-term setup looks challenging,” Wells Fargo analysts wrote in a notice.

The firm forecast its gross bookings development for the present quarter to be within the low- to mid-single digits vary and mentioned it expects revenue development to be within the mid-single digit.

Expedia logo on iPhone

 Expedia’s inventory noticed its largest single-day drop in 4 years on Friday. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket by way of Getty Images / Getty Images)

“Expedia’s first-quarter guidance may have underwhelmed investors, with revenue growth expected to be in the mid-single digits range compared to the 9% consensus estimate,” CFRA analyst Siye Desta mentioned.

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However, the corporate reported a better-than-expected adjusted revenue of $1.72 per share on the again of resilient demand throughout the vacation season. Analysts on common had anticipated a revenue of $1.68 per share, based on LSEG information.

Shares of Expedia commerce about 12.35 instances their ahead revenue estimates, properly beneath rival Booking’s 21.04 a number of.



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