Why Expedia's Share Price Is Popping
- - Why Expedia's Share Price Is Popping
Matthew Benjamin, The Motley FoolNovember 10, 2025 at 2:46 AM
0
Key Points -
Expedia beat Wall Street revenue and earnings estimates.
Management also raised full-year revenue growth guidance.
Travel demand is a major factor behind Expedia's strong revenue and earnings growth.
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Expedia (NASDAQ: EXPE) is up 21% since Wednesday, Nov. 5.
What's going on with the online travel company?
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Well, it reported third-quarter results Thursday morning, and they were extremely solid.
Revenue for the quarter rose 9% year over year to just over $4.4 billion. The consensus Wall Street estimate was for $4.3 billion. And earnings came in at $7.57 a share, which was 23% higher than a year ago and 9% higher than Wall Street's estimate of $6.95 a share.
The company also reported 11% year-over-year growth in booked room nights, its fastest pace of room night growth in more than three years, with business-to-business sales driving the growth.
Raised guidance
Best of all, management raised its guidance for full-year 2025 revenue growth to 6%-7%. Previous guidance was for 3% to 5% growth. And it now estimates gross bookings for the year will climb 7%; previously it predicted that would rise 3% to 5%.
A person holding a smartphone is looking out of an airplane window.
Image source: Getty Images.
CEO Ariane Gorin said the better-than-expected quarterly performance and revised guidance reflect an improved travel demand environment.
Investors love when a company raises guidance, as it's a good sign that things are trending in the right direction. And company insiders have a much better view on future performance than investors. Plus, share prices reflect future earnings growth, so a rosier outlook will nearly always lift the stock price.
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Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Source: “AOL Money”
