Expedia Stock Soars After Strong Q4 2024 Earnings, Reinstates Dividend

Expedia Group (NASDAQ: EXPE) demonstrated remarkable strength in Q4 2024, with the online travel giant surpassing Wall Street expectations across key metrics. The company reported adjusted earnings per share of $2.39, significantly beating analyst estimates of $2.09, while revenue reached $3.18 billion, exceeding consensus forecasts of $3.07 billion.

The company's performance was particularly impressive in its gross bookings, which surged 13% year-over-year. Both leisure and business segments showed robust growth, with consumer bookings rising 9% and business travel bookings experiencing a substantial 24% increase. The accommodation sector remained strong, with both room nights and gross lodging bookings climbing 12%.

Expedia Group (NASDAQ: EXPE) demonstrated remarkable strength in Q4 2024, with the online travel giant surpassing Wall Street expectations across key metrics. The company reported adjusted earnings per share of $2.39, significantly beating analyst estimates of $2.09, while revenue reached $3.18 billion, exceeding consensus forecasts of $3.07 billion.

The company's performance was particularly impressive in its gross bookings, which surged 13% year-over-year. Both leisure and business segments showed robust growth, with consumer bookings rising 9% and business travel bookings experiencing a substantial 24% increase. The accommodation sector remained strong, with both room nights and gross lodging bookings climbing 12%.

International Markets Drive Success

International markets played a crucial role in Expedia's stellar performance. The company reported exceptional results in Europe and Asia-Pacific regions, showcasing successful geographic diversification. This global expansion has helped offset concerns about domestic U.S. travel trends, which analysts note remain challenging from a macroeconomic perspective.

In a significant move that signals confidence in its financial position, Expedia announced the reinstatement of its quarterly dividend program. Starting March 2025, shareholders will receive $0.40 per share, marking a notable return to shareholder returns. Additionally, the appointment of Scott Schenkel, former eBay executive, as CFO has been well-received by market analysts who anticipate more consistent and conservative future guidance.

Expedia's market capitalization now stands at $25.4 billion, reflecting a 6.5% year-to-date increase and an impressive 28.6% gain over the past 12 months. While Truist Securities maintains a "hold" rating with a $163 price target, Benchmark has raised its target to $225, expressing optimism about the company's trajectory.

EXPE Stock Analysis

Total Score

 

 

score

3.96

 

Strong Sell

Hold

Strong Buy

 

 

Risk Level

 

LOW

HIGH

 

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