Expedia Group Inc. (NASDAQ: $EXPE) is a leading travel technology company. In the past few years, the company has become a travel-related business network, having acquired multiple travel sites. Its main revenue source is booking accommodations.
Expedia Group Earnings Report
Expedia Group released its fiscal Q3 earnings report on November 2, 2023. In the report, Expedia Group revealed that it had seen record revenue and profitability in Q3. The company’s reported revenue was $3.93 billion, against an expected 3.86 billion, a surprise of 1.87%.
Revenue in Q3 grew 9% compared to the same period in 2022, a record for any quarter. Additionally, net income grew to $425 million, with adjusted net income at $778 million, a new record for any quarter. The report also revealed that Expedia Group had repurchased nearly 17 million shares for $1.8 billion year-to-date.
Earnings per share were also better than expected. Expedia Group reported an EPS of $5.41 against an expected $5.00, a surprise of 8.23%. That represents the second quarter Expedia Group has beat EPS estimates after the previous two quarters turned out horribly for the company.
Expedia Group Share Performance
Following the release of the earnings report, EXPE stock rose 18% during trading on Friday, November 3, 2023, to $112.71. One aspect that proved particularly enticing was the share buyback program. Expedia Group revealed that the board had approved a share buyback plan for $5 billion worth of shares. Thus far, they have bought $1.8 billion worth of shares. In general, EXPE stock has had a great 2023. The stock is up 28.55%. That is quite impressive, given that in Q1 2023, it missed EPS estimates by 697.91%.
Why Expedia Group Stock Is Rising
The travel industry has been on the resurgence as the post-COVID recovery kicks into high gear. Expedia Group reported sales at an all-time high. According to Expedia’s CEO Peter Kern, while spending on travel in Europe and North America was stable, the Latin American and Asia-Pacific regions experienced stronger growth. Expedia is in a great position to take full advantage of the recovery, thanks to its dominance.
Expedia Group Stock Forecast
Following the report’s release, analysts have revised their stock price target for EXPE stock upward. The stock now has a moderate buy rating, with an average price target of $125.79. On the high end, they predict a price of $160.00, while on the low end; they predict a price of $91.00. Based on the current price of $112.71 as of the close of the market on November 3, 2023, the midpoint is an upside of 11.61%.
Should You Buy EXPE Stock?
EXPE stock has a moderate buy rating by analysts. There is a good reason for that. For one, institutional investors hold 97.15% of EXPE stock. Besides that, the top ten institutional investors hold nearly 42.58% of the stock. With such a huge stake in the hands of a few, there is always a risk of price destabilization if one or two holders decide to leave their position. With that in mind, EXPE stock has had a good year, and the travel industry is poised to recover by the end of this year. Holding EXPE stock would be a good addition to your portfolio. However, always weigh the risk of any stock market investment.
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