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Expedia Earnings Miss in Q1 on Virus Hit to Travel, Tourism

Published 05/20/2020, 04:05 PM
Updated 05/20/2020, 04:06 PM
© Reuters.  Expedia Earnings, Revenue Miss in Q1
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Investing.com - Expedia (NASDAQ:EXPE) reported on Wednesday first-quarter results that fell short of expectations as coronavirus-led disruptions to travel and tourism weighed on bookings.

Expedia shares lost 0.82% in after-hours trade following the report.

Expedia announced earnings per share of $-1.83 on revenue of $2.21 billion. Analysts polled by Investing.com anticipated EPS of $-1.20 on revenue of $2.22 billion. That compared with an EPS of $-0.27 on revenue of $2.61 billion in the same period a year before. Expedia had reported EPS of $1.24 on revenue of $2.75 billion in the previous quarter. Analysts are expecting EPS of $-1.7 and revenue of $1.3 billion in the upcoming quarter.

Gross booking fell 39% in the quarter year on year, as agency bookings fell 43% and merchant bookings slipped 33%.

Lodging revenue fell 10% as room nights stayed slipped 14% year on year during the quarter. Air revenue slumped 56%, which the company blamed on a 41% decrease in revenue per ticket and a 26% decline in air tickets sold as the coronavirus pandemic brought travel to a standstill.

"Like all travel companies, Expedia Group suffered a major reduction in business since the onset of COVID-19. Fortunately, we were ahead of the game having implemented cost savings measures earlier this year, and with the added pressure from Covid-19 we accelerated and expanded our ambition on improving our long-term cost structure," said Vice Chairman and CEO Peter Kern in a statement.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

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