Expedia, the popular online travel agency, has recently made several exciting announcements that have sent the company’s stock soaring. In addition to reporting better-than-expected quarterly financial results, Expedia has also revealed plans for a massive stock repurchase program.
Stock Soars Following the News
After Expedia made these announcements, its stock rose an impressive 8.6% in after-hours trading, reaching $103.
Expedia’s board of directors has given the green light for a $5 billion stock buyback program, effective immediately. This significant program represents more than 35% of the company’s recent market valuation of $13.6 billion.
Continued Commitment to Shareholders
Expedia has already repurchased $1.8 billion worth of its common stock in this year alone.
Impressive Quarterly Results
Expedia’s third-quarter revenue stood at $3.93 billion, marking a 9% increase compared to the previous year. This result slightly exceeded analysts’ expectations of $3.86 billion. Adjusted profits for the quarter were reported at $5.41 per share, which is a remarkable 33% increase from the same period last year and surpassing analysts’ consensus forecast of $4.99 per share.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $1.2 billion, showing an impressive 13% growth. Expedia also experienced positive trends in other areas, with gross bookings up by 7% to $25.7 billion and the total number of booked room nights rising by 9% to 89.3 million.
CEO Peter Kern praised the company’s strong performance, stating, “Our strong third-quarter results with record revenue and profitability came in ahead of our guidance and reflect the resilience of travel demand and continued improvements stemming from the execution of our strategy.”
Promising Outlook
Expedia remains optimistic about its future growth, with expectations of double-digit revenue growth for the year and improved margins compared to the previous year.
