Expedia Group EXPE reported fourth-quarter 2024 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 15.46%. The figure increased 38.95% year over year.

EXPE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 45.86%, on average.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues of $3.18 billion rose 10% year over year. The figure lagged the Zacks Consensus Estimate by 3.52%.

Expedia Group, Inc. Price, Consensus and EPS Surprise

Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote

B2B revenues increased 21% year over year to $1.04 billion. B2C increased 6% year over year to $2.07 billion. Trivago rose 2% year over year to $66 million.

Advertising revenues jumped 25% year over year. Newly launched ad types and new tools for partners to manage their campaigns drove customer engagement.

What Should You Expect From EXPE Shares Post Q4?

EXPE shares were up 11.14% in pre-market trading today.

Expedia shares have lost 7.4% year to date, underperforming the Zacks Retail Wholesale sector’s appreciation of 9.7%.

EXPE shares also underperformed the Zacks Electronic Commerce industry and its closest peers, including MakeMyTrip MMYT, Booking Holdings BKNG and Travelzoo TZOO.

While TZOO and MMYT shares have returned 14.7% and 3.9%, respectively, BKNG shares have lost 3.8% in the year-to-date period. The industry appreciated 7.2% over the same time frame.

EXPE offered positive guidance for 2025, which is expected to boost its share price in the near term.

EXPE’s Gross Bookings Rise Y/Y

Total gross bookings were $24.42 billion, which increased 13% year over year with a 5-point sequential acceleration in both B2C and B2B with a better-than-expected demand environment and strong operational execution.

B2C gross bookings increased 9% year over year, while B2B gross bookings increased 24%.
 
Lodging gross bookings grew 12% year over year to $20 billion, with hotel bookings climbing up 14%.

Strength in ‘booked room nights,’ which rose 12% from the year-ago quarter to 86.4 million, was a positive.

EXPE’s Operating Details

Adjusted EBITDA was $643 million in the reported quarter, up 21% year over year.

Direct sales and marketing expenses were $1.55 billion, up 12.99% year over year. Overhead expenses were $643 million, down 1% year over year.

Adjusted EBIT increased 280 basis points year over year to $338 million.

EXPE Debt Levels Improve, Burns Free Cash Flow

As of Dec. 31, 2024, cash and cash equivalents and short-term investments were $4.5 billion, down from $6.05 billion as of Sept. 30, 2024.

Long-term debt was $5.223 billion as of Dec. 31, 2024, compared with $5.221 billion as of Sept. 30, 2024.

The gross leverage ratio was reduced to 2.1, and Expedia remains on track toward its targeted gross leverage ratio of 2, driven by its ongoing strong EBITDA growth.

Net cash provided by operating activities was $198 million in the reported quarter, and Expedia’s free cash flow was $7 million.

EXPE has approximately $3 billion remaining under its current share repurchase authorization.

Expedia Offers Positive 2025 Guidance

EXPE expects gross bookings to be in the 4% to 6% range for first-quarter 2025. Revenue growth is expected to be 3%-5%.

It expects first-quarter EBITDA margins to be flat to slightly better year over year. The first quarter is expected to be the lowest EBITDA quarter, causing margins to be highly sensitive.

For 2025, EXPE expects gross bookings and revenue growth in the 4% to 6% range, which is roughly in line with 2024, factoring in the 2 points of negative FX impact. Expedia expects EBITDA margin expansion of 50 bps year over year.

EXPE’s Zacks Rank

Currently, Expedia has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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