Expedia Stock Surges on Strong Earnings; Analysts Weigh In

Expedia Group (EXPE) shares surged on Feb. 6, following the company's release of strong fourth-quarter earnings. The online travel agency reported adjusted earnings per share (EPS) of $2.39, surpassing the consensus estimate of $2.09 by 14.4%. Revenue rose to $3.184 billion, exceeding the anticipated $3.070 billion. This robust performance was driven by a 12% increase in booked room nights and a 13% rise in gross bookings, reflecting the company's ability to capitalize on strong travel demand.



Analysts have weighed in on Expedia Group's strong earnings and the company's outlook for the future. BofA Securities analyst Justin Post reiterated a 'Buy' rating on EXPE shares and raised the price target from $221.00 to $250.00. Post cited improved brand execution under new management, continued growth in Vrbo bookings, and a rebound at Hotels.com as key factors driving his optimism. He expects more revenue and EBITDA outperformance in 2025 if the travel environment stabilizes.

JMP Securities analyst Nicholas Jones reiterated a 'Market Perform' rating on EXPE shares, noting strong fourth-quarter results with both revenue and earnings surpassing consensus estimates. Jones highlighted the momentum across EXPE's core brands, including Expedia, Hotels.com, and Vrbo, as well as the strong adoption of the company's loyalty program. He anticipates more consistent trends leading to stronger top-line growth, U.S. market share stabilization, and higher adjusted EBITDA margins before becoming more bullish on the stock.

DA Davidson analyst Tom White reiterated a 'Neutral' rating on EXPE shares, raising the price target from $190 to $205. White cited a 9% increase in the B2C segment, impressive B2B growth, and a 25% rise in advertising revenue as key drivers of the company's performance. He noted that the initial guidance for CY'25 projects reported growth in both gross bookings and revenue in the range of +4% to +6%, which is below the Street's expectation of 2025 gross bookings growth around 7% and revenue growth of approximately 8%.

Expedia Group's strong earnings performance and positive analyst sentiment reflect the company's ability to execute on its strategic initiatives, such as expanding its B2B offerings and implementing the One Key loyalty program. As the travel industry continues to recover, investors should monitor Expedia Group's progress in expanding its market share and driving revenue growth.