Expedia (EXPE +4.41%) is up 21% since Wednesday, Nov. 5.
NASDAQ: EXPE
Key Data Points
What's going on with the online travel company?
Well, it reported third-quarter results Thursday morning, and they were extremely solid.
Revenue for the quarter rose 9% year over year to just over $4.4 billion. The consensus Wall Street estimate was for $4.3 billion. And earnings came in at $7.57 a share, which was 23% higher than a year ago and 9% higher than Wall Street's estimate of $6.95 a share.
The company also reported 11% year-over-year growth in booked room nights, its fastest pace of room night growth in more than three years, with business-to-business sales driving the growth.
Raised guidance
Best of all, management raised its guidance for full-year 2025 revenue growth to 6%-7%. Previous guidance was for 3% to 5% growth. And it now estimates gross bookings for the year will climb 7%; previously it predicted that would rise 3% to 5%.
Image source: Getty Images.
CEO Ariane Gorin said the better-than-expected quarterly performance and revised guidance reflect an improved travel demand environment.
Investors love when a company raises guidance, as it's a good sign that things are trending in the right direction. And company insiders have a much better view on future performance than investors. Plus, share prices reflect future earnings growth, so a rosier outlook will nearly always lift the stock price.
