Expedia shares fell 13% after analysts cut price targets
Visitors browse the Expedia exhibit during the Berlin International Tourism Fair.
Fabrizio Bensch | come back
Actions of Expedia It plunged more than 13% on Tuesday after reporting mixed financial data in what has been a tough earnings season.
The company reported first-quarter financial data after Monday’s bell. Expedia lost 47 cents per share on $ 2.25 billion in revenue. Analysts had expected the company to report a loss per share of 62 cents on $ 2.23 billion in revenue.
The company, which also owns the Vrbo platform, recorded gross bookings of $ 24.41 billion, up from $ 25.89 billion forecast by Wall Street, according to FactSet. Expedia also lost room nights booked. The company reported 56.5 million room nights, compared to analysts’ projections of 64.28 million, for FactSet.
At least eight companies cut their stock price target after the report.
“The results fell short of our expectations given Omicron’s impact as well as geopolitical uncertainty,” analysts from Credit Suisse said in a statement. The company cut its price target to $ 225 from $ 231.
Travel executives from various industries said they are optimistic about this summer’s travel season, with consumers poised to travel again. But there was a slight impact from the omicron coronavirus variant and the war in Ukraine that slowed travel to Europe this quarter, Expedia CEO Peter Kern said during a phone call from the company with investors. Inflation could also be weighed on consumer plans.
CNBC’s Michael Bloom contributed to this report.