Expedia (EXPE) Stock: Business Travel Boom Drives Pre-Market Surge

TLDR

• Expedia raised its 2025 revenue growth forecast to 6-7% from the previous 3-5% range after beating third-quarter profit estimates.
• The company’s B2B segment showed strong performance with bookings rising 26% to $9.38 billion in the third quarter.
• Third-quarter adjusted earnings came in at $7.57 per share, beating analyst estimates of $6.92 per share.
• U.S. room nights grew at the fastest pace in over three years, while Asia saw the strongest growth with nights jumping over 20%.
• Total gross bookings for the third quarter reached $30.73 billion, up 12% from the previous year.

Expedia posted third-quarter results that beat Wall Street expectations. The online travel platform reported adjusted earnings of $7.57 per share.

Analysts had estimated $6.92 per share. This marks the third time in four quarters the company has beaten consensus earnings estimates.

The better-than-expected results prompted Expedia to raise its full-year outlook. The Seattle-based company now expects 2025 revenue to grow between 6% and 7%.

Expedia Group, Inc., EXPE

The previous forecast ranged from 3% to 5%. Shares jumped 16% in pre-market trading on Friday following the announcement.

Business Travel Drives Growth

The B2B segment powered much of the quarter’s growth. This division serves corporate travel management firms, offline travel agents, and financial institutions.

Bookings in this segment climbed 26% to $9.38 billion during the third quarter. The performance shows continued strength in business travel demand.

The direct-to-consumer segment also contributed to results. This division includes Hotels.com and the short-term rental platform Vrbo.

Bookings in this segment rose 7% to $21.34 billion. Total gross bookings for the quarter reached $30.73 billion, up 12% year-over-year.

Revenue for the quarter came in at $4.41 billion. This beat the consensus estimate and represented growth from $4.06 billion in the same period last year.

Regional Performance Shows Mixed Results

U.S. room nights grew at the fastest pace in over three years. The company reported high single-digit growth in domestic bookings.

However, international markets outperformed the U.S. Asia led all regions with room night growth exceeding 20%.

The geographic split highlights where travel demand remains strongest. International travel continues to recover at different rates across markets.

Expedia holds a Zacks Rank #2, indicating expected outperformance in the near future. The favorable earnings revision trend preceded this latest report.

The company has now surpassed consensus earnings estimates in three of the last four quarters. It has also topped revenue estimates three times over the same period.

Expedia shares have gained 14.8% year-to-date. This trails the S&P 500’s gain of 15.6% over the same timeframe.

The current consensus estimate for next quarter stands at $2.85 per share on revenues of $3.27 billion. Full-year estimates sit at $14.33 per share on revenues of $14.34 billion.

The company mentioned it is monitoring the ongoing government shutdown closely, now the longest on record.

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