Key facts
- Expedia raised full-year gross bookings guidance to $131.4 billion to $131.9 billion, from $129.5 billion to $130.8 billion.
- Analysts on average expected annual gross bookings of $130.22 billion, according to LSEG data.
- Third-quarter adjusted profit was $9.39 per share, beating Wall Street estimates of $8.89.
- Fourth-quarter revenue guidance of $3.69 billion to $3.75 billion has a midpoint below the $3.74 billion analysts estimate.
- CEO Ariane Gorin attributed the moderated fourth-quarter forecast to US midterm elections and unrest in the Middle East and Europe.
Expedia Group raised its full-year forecasts for gross bookings and revenue on November 4, pointing to steady demand for international travel. The Seattle-based company now expects annual gross bookings of $131.4 billion to $131.9 billion, up from a prior range of $129.5 billion to $130.8 billion. Analysts on average had expected $130.22 billion, according to data compiled by LSEG.
The company forecast annual revenue of $16.37 billion to $16.43 billion, compared with $16.05 billion to $16.22 billion previously. For the fourth quarter, Expedia projected revenue of $3.69 billion to $3.75 billion, a midpoint below analysts' estimate of $3.74 billion.
"The US consumer was strong both in domestic travel and in outbound to Europe and Asia," CEO Ariane Gorin told Reuters. She attributed the moderation in the fourth-quarter forecast to the US midterm elections and unrest in the Middle East and Europe.
Expedia reported third-quarter adjusted profit of $9.39 per share, beating Wall Street estimates of $8.89. Revenue rose about 12% to $4.94 billion for the quarter ended September 30, beating estimates of $4.74 billion. The company owns the Vrbo vacation rental brand.
Gorin's comments echoed those from Booking Holdings on Tuesday about travel disruptions to and from the Middle East and elevated airfares, alongside unrest in certain European cities. Hotel operators including Hilton and Marriott have also flagged a drag from the Middle East conflict on their fourth-quarter results, along with impact from the elections. In Europe, Gorin noted, people traveled more domestically than on long-haul outbound trips.