Expedia share drops 13% after critics cut price targets on mixed returns
Key takeaways:
- Shares of Expedia fell almost 13% on Tuesday after reporting mixed financials in what’s been a challenging profits season.
- Travel executives from various industries have said they’re hopeful regarding this summer’s travel season, with customers willing to travel again.
- But there was a slight hit from the omicron coronavirus variant and the battle in Ukraine slowing European travel this quarter, Expedia said. Inflation could also be weighing on customers’ plans.
Shares of Expedia tumbled almost 13% on Tuesday after reporting mixed financials in what’s been a tough earnings season.
The firm reported first-quarter financials after the bell on Monday. Expedia failed 47 cents per share on $2.25 billion in income. Analysts had anticipated the firm to report a loss per share of 62 cents on $2.23 billion in earnings.
According to FactSet, the firm, which also owns the Vrbo platform, reported gross bookings of $24.41 billion, likened to Wall Street’s predicted $25.89 billion. Expedia also missed on room nights booked.
According to FactSet, the firm reported 56.5 million room nights, likened to analyst forecasts of 64.28 million.
Following the report, at least eight companies slashed their price target on the stock.
“Results were below our anticipations given the result of Omicron and geopolitical delay,” Credit Suisse critics said in a note. The company cut its price target to $225 from $231.