Expedia Group Inc (NASDAQ:EXPE) is trading higher Friday morning after the company announced better-than-expected earnings results.
Expedia reported quarterly revenue of $2.28 billion, which came in below the $2.31 billion estimate. The company reported adjusted earnings of $1.06 per share, which beat the estimate of 67 cents per share. Adjusted EBITDA was $479 million, the highest fourth-quarter EBITDA in Expedia's history.
"While we experienced yet another significant travel disruption from COVID this quarter, we were pleased to see that the impact was less severe and of shorter duration than previous waves. Notably, the travel industry and traveling public prove more resilient with each passing wave, and we continue to expect a solid overall recovery in 2022, barring a change in the trajectory of the virus," said Vice Chair Peter Kern.
Analysts weighed in as well, Barclays analyst Mario Lu maintained Expedia with an Overweight rating and raised the price target from $210 to $226.
Credit Suisse analyst Stephen Ju maintained Expedia with an Outperform rating and raised the price target from $205 to $231.
Expedia said lodging revenue, which dominates its business, was $1.7 billion in the quarter, up 116% from a year earlier. Air revenue was $68 million, up 68%, while advertising and media revenue was $152 million, up 85%.
The stock went airborne $4.60, or 2.3%, to $202.12, in the first hour of trade on Friday.
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