Expedia (EXPE) Stock Surges on Strong Q4 Results and Dividend Reinstatement

Expedia Group, Inc. (EXPE) shares soared on Friday, February 7, 2025, following the company's release of strong fourth-quarter and full-year 2024 financial results. The stock price climbed by over 18% to an all-time high, driven by robust travel demand and the reinstatement of the company's quarterly dividend. Expedia's board of directors approved a $0.40 per share dividend, to be paid on March 27, 2025, to holders of record on March 6, 2025.



Key highlights from Expedia's Q4 2024 financial results include:

* Booked room nights grew by 12% year-over-year (YoY) in the fourth quarter and 9% for the full year 2024.
* Total gross bookings and revenue grew by 13% and 10% YoY in the fourth quarter, respectively. Full-year gross bookings and revenue both grew by 7% compared to 2023.
* B2C and B2B gross bookings growth accelerated by 5-points to 9% and 24% respectively in the fourth quarter.
* Lodging gross bookings grew by 12% YoY in the fourth quarter, with hotel bookings up by 14%.
* Fourth-quarter net income grew by 124% and adjusted net income grew by 30% YoY. Adjusted EBITDA increased by 21% with a 175 basis points margin expansion, and adjusted EBIT increased by 50% with a 282 basis points margin expansion.



Expedia's strong financial performance reflects the company's resilience in the face of macroeconomic challenges and competition. The reinstatement of the dividend signals management's confidence in the company's financial health and strategic direction. Wedbush increased its price target on Expedia's stock to $115 from $108 following the earnings report, indicating positive analyst sentiment and expectations for future growth.

Expedia's strategic initiatives, such as the migration to a unified platform and the launch of the One Key loyalty program, have contributed to the company's growth and competitive differentiation. These initiatives have helped Expedia capitalize on strong travel demand and expand its B2B segment. The company's focus on direct customer engagement and investment in brand and supply strength have also driven robust customer relationships and varied consumer preferences globally.

In conclusion, Expedia's (EXPE) stock surged today on the back of strong fourth-quarter and full-year 2024 financial results, driven by robust travel demand and the reinstatement of the company's quarterly dividend. The company's strategic initiatives and focus on direct customer engagement have contributed to its growth and competitive differentiation, positioning Expedia for continued success in the global travel market.