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SEATTLE - Expedia Group Inc. (NASDAQ:EXPE) shares surged nearly 16% after the online travel company reported better-than-expected second-quarter results and raised its full-year outlook, driven by strong performance in its business-to-business segment and advertising revenue.
The travel giant posted adjusted earnings of $4.24 per share, comfortably beating analyst expectations of $3.96. Revenue rose 6% YoY to $3.79 billion, exceeding the consensus estimate of $3.7 billion. Total (EPA:TTEF) gross bookings increased 5% to $30.41 billion, with B2B gross bookings showing impressive growth of 17%, while B2C bookings grew just 1%.
Booked room nights increased 7%, primarily driven by growth outside the U.S. The company’s B2B and Advertising segments were standout performers, with revenue growth of 15% and 19%, respectively. Adjusted EBITDA increased 16% to $908 million, with margins expanding by 190 basis points to 24%.
"We delivered a solid second quarter, surpassing our top and bottom line expectations while navigating a dynamic environment," said Ariane Gorin, CEO of Expedia Group. "Our performance was driven by continued strength across B2B and Advertising and further progress on our key priorities."
Based on its strong first-half performance, Expedia raised its full-year guidance. The company now expects gross bookings to grow 3-5%, up from its previous forecast of 2-4%. Revenue is also projected to grow 3-5%, compared to the earlier guidance of 2-4%, while EBITDA margin expansion is now expected to be 100 basis points, up from the previous guidance of 75 to 100 basis points.
For the third quarter, Expedia forecasts gross bookings growth of 5-7% and revenue growth of 4-6%.
The company continued its share repurchase program, buying back approximately 3.8 million shares for $627 million in the second quarter. Expedia also declared a quarterly dividend of $0.40 per share.
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