Expedia Group Reports Q4 Earnings Below Expectations

Shares of Expedia Group experienced a sharp decline in after-hours trading on Thursday, following disappointing fourth-quarter performance results. The company's profit and gross bookings fell short of Wall Street's estimates, resulting in a 12% drop in the stock price.

Falling Short of Expectations

Expedia Group, based in Seattle, reported a profit of $132 million, or 92 cents per share, for the fourth quarter. This is a decrease from the $177 million, or $1.11 per share, earned in the same period the previous year. Analysts had anticipated per-share earnings of $1.12, according to FactSet.

The company's gross bookings increased by 6% to $21.67 billion. However, this figure fell short of the projected $22 billion as estimated by analysts.

Positive Revenue Growth

Despite the disappointing profit and gross bookings figures, Expedia Group did achieve a positive milestone in terms of revenue. The company's revenue rose by 10% to $2.89 billion, slightly surpassing analysts' expectations of $2.87 billion.

Leadership Change

In addition to the underwhelming financial results, Expedia Group also announced a change in leadership. Peter Kern, who has been serving as the chief executive since 2020, will step down from his position. He will be succeeded by Ariane Gorin, the current president of Expedia for Business.

These developments have generated concerns among investors, as reflected in the decline in the stock price. Despite a recent 52-week high and a year-to-date increase of 5.1% in share value, the company's performance in Q4 has tempered investor optimism.