Shares of Expedia Group Inc.
EXPE,
tumbled 11% in premarket trading Thursday, after the travel booking site reported second-quarter profit that was well above forecasts but revenue and bookings rose less than expected. The company swung to net income of $385 million, or $2.54 a share, from a loss of $185 million, or $1.17 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.89 beat the FactSet consensus of $2.35. Revenue grew 5.6% to $3.356 billion, below the FactSet consensus of $3.373 billion. Booked hotel room nights rose 8.7% to 89.7 million but was below the FactSet consensus of 90.5 million, and gross bookings increased 4.5% to $27.32 billion to miss Wall Street projections of $28.22 billion. Still, the company said it saw travel demand during the quarter “remain strong.” The stock has run up 34.7% year to date through Wednesday, while the S&P 500
SPX,
has gained 17.6%.
