Expedia Group (EXPE) delivered a positive surprise to investors with its third-quarter earnings report on Thursday, exceeding expectations on both gross bookings and earnings. The company reported adjusted earnings per share of $6.13, surpassing the analyst consensus estimate of $6.04. While revenue came in slightly below expectations at $4.06 billion compared to the estimated $4.11 billion, the strong earnings performance fueled optimism among investors.
“Our third quarter results exceeded our expectations on gross bookings and earnings with revenue landing in-line. We accelerated bookings growth in our consumer business for the second consecutive quarter, and our advertising and B2B businesses continue to deliver strong double-digit growth,” stated Ariane Gorin, CEO of Expedia Group. The upbeat sentiment reflected in the company’s performance was evident in the stock market reaction. Expedia shares rallied by 4.8% to trade at $182.45 on Friday.
Following the earnings announcement, a wave of analysts revised their price targets on Expedia, reflecting their confidence in the company’s future prospects. Benchmark analyst Daniel Kurnos maintained his Buy rating on Expedia and increased his price target from $180 to $200. Wedbush analyst Scott Devitt also maintained a Neutral rating but raised his price target from $130 to $180. Oppenheimer analyst Jed Kelly maintained an Outperform rating and boosted his price target from $155 to $210. JP Morgan analyst Doug Anmuth kept his Neutral rating while raising the price target from $135 to $170. BTIG analyst Jake Fuller maintained a Buy rating and increased his price target from $175 to $200. Lastly, Barclays analyst Trevor Young maintained an Equal-Weight rating and raised the price target from $134 to $153.
The analysts’ revisions to their price targets underscore the positive outlook for Expedia following its strong third-quarter performance. Investors will be watching closely to see if the company can maintain this momentum and continue to deliver solid growth in the coming quarters.
