Expedia stock falls despite earnings beat amid Middle East travel disruptions
Expedia Group reported better-than-expected first-quarter earnings, with revenue rising 15% year-over-year to $2.89 billion, beating analyst estimates. However, the company issued soft guidance for second-quarter bookings, citing geopolitical headwinds and continued disruptions to travel in the Middle East. Shares fell more than 5% in after-hours trading. CEO Peter Kern noted that the Israel-Hamas conflict and broader regional instability have dampened travel demand to and within the Middle East. The company also faces increased competition from Booking Holdings and Airbnb. Despite the earnings beat, investors focused on the cautious outlook and geopolitical risks.
Key facts
- Expedia Q1 revenue rose 15% to $2.89 billion, beating estimates.
- Soft Q2 bookings guidance issued due to Middle East travel disruptions.
- Shares fell over 5% in after-hours trading.
- CEO Peter Kern cited Israel-Hamas conflict and regional instability.
- Increased competition from Booking Holdings and Airbnb noted.
- Earnings per share of $1.93 exceeded expectations of $1.83.
- Gross bookings rose 12% to $30.2 billion.
- Company maintained full-year guidance despite near-term headwinds.
Entities
Institutions
- Expedia Group
- Booking Holdings
- Airbnb
Locations
- Middle East
Sources
- Quartz —