Expedia turns cautious, says travel demand softened in July

By Claudia Assis

July ushered 'a more challenging macro environment,' Expedia says, but stock rallies on earnings beat

Shares of Expedia Group Inc. jumped more than 10% in the extended session Thursday after the online travel company comfortably beat Wall Street's expectations for its second quarter but sounded the alarm for the current quarter, saying that July travel demand weakened.

Second-quarter results "came in at the high end of our expectations," Chief Executive Ariane Gorin said. "However, in July, we have seen a more challenging macro environment and a softening in travel demand."

Expedia is therefore "adjusting" its expectations for the rest of the year, Gorin said.

Expedia (EXPE) earned $386 million, or $2.80 a share, in the quarter, compared with $385 million, or $2.54 a share, in the year-ago quarter.

Adjusted for one-time items, Expedia earned $3.51 a share. Revenue rose 6% to $3.6 billion, the company said.

Analysts polled by FactSet expected adjusted earnings of $3.18 a share on sales of $3.53 billion.

-Claudia Assis

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08-08-24 1800ET

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