Despegar (NYSE:DESP).com, the leading online travel company in Latin America, has reached a new 52-week high, with its stock price climbing to $19.44. According to InvestingPro data, the company boasts an impressive gross profit margin of 71% and has delivered a remarkable 55% return year-to-date. This milestone reflects a significant turnaround for the company, which has seen an impressive 48.28% change over the past year. Investors attribute this surge to the company's robust recovery strategies and the rebound in travel demand post-pandemic. The stock's ascent to this new peak signals growing confidence in Despegar.com's market position and future growth prospects as the travel industry continues to gain momentum. InvestingPro analysis reveals that analysts have set a high target of $25 for the stock, with multiple additional ProTips available to subscribers regarding the company's financial health and growth potential.
In other recent news, Despegar.com witnessed a significant upgrade in earnings forecasts by Morgan Stanley (NYSE:MS), which boosted the company's stock target by 23%. This followed Despegar.com's impressive third-quarter performance and updated guidance for the year 2024. The company's net revenue rose by 9% year-over-year, and its adjusted EBITDA for the quarter nearly doubled from the previous year, surpassing Morgan Stanley's estimates by 19%.
Despegar.com's management has upheld its revenue guidance for fiscal year 2024, projecting over $760 million, while raising its adjusted EBITDA forecast to more than $170 million. Morgan Stanley's revenue estimate for 2024 remains unchanged at $762 million. The revised estimates for 2024 reflect a 7% increase in the adjusted EBITDA forecast, with a projection of $173 million, marginally above the company's guidance.
Among the recent developments, Despegar.com announced a 10-year lodging outsourcing agreement with Expedia (NASDAQ:EXPE), set to commence on January 1, 2025. The company also reported a substantial increase in the usage of its loyalty program and mobile app. Despite facing foreign exchange headwinds, particularly in Brazil and Mexico, Despegar maintains a positive full-year revenue guidance and has raised its adjusted EBITDA forecast.
In its third-quarter 2024 financial results, Despegar.com reported a slight dip in gross bookings to $1.3 billion due to foreign exchange fluctuations, but the company's adjusted EBITDA soared 94% to a record $48 million. The adjusted net income also saw a significant boost of 309% to $36 million, with adjusted earnings per share reaching $0.34. Total (EPA:TTEF) revenues saw a 9% increase to $194 million, fueled by a strong performance in non-air segments and strategic B2B growth.
Analysts highlight the company's resilience in the face of macroeconomic challenges and its commitment to enhancing customer experiences and capitalizing on new revenue streams. The strategic partnership with Expedia and the continued development of its AI travel assistant are expected to boost profitability starting from Q1 2025.
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