Expedia stock touched a record high Friday on fourth-quarter results that soundly beat Wall Street estimates, but the stock faltered amid rising market tensions over Russia threats to invade Ukraine.
After the market close Thursday, Expedia reported adjusted earnings of $1.06 a share on revenue of $2.3 billion. Analysts expected Expedia to report earnings of 60 cents a share on revenue of $2.3 billion.
Revenue grew 17% from the year-ago period. Total gross bookings were $17.5 billion, down 25% year over year but the lowest quarterly decline in 2021, the company said.
Expedia stock dropped 2.7% to close at 192.12, on the stock market today.
Expedia brands include Hotels.com, Vrbo, Orbitz and Travelocity. The company is an IBD Leaderboard stock.
Expedia Stock: Covid Impact Easing
"While we experienced yet another significant travel disruption from Covid this quarter, we were pleased to see that the impact was less severe and of shorter duration than previous waves." Chief Executive Peter Kern said in written remarks with the Expedia earnings release. "We continue to expect a solid overall recovery in 2022, barring a change in the trajectory of the virus."
Lodging revenue during the quarter more than doubled to $1.7 billion, accounting for 75% of revenue. Airline tickets climbed 68% to $65 million. Advertising jumped 85% to $152 million, due to growth from both Trivago and Expedia Group Media Solutions.
Other revenue "increased significantly" to $349 million. That's due to growth from both car and travel insurance products.
"We are increasing our speed of innovation for travelers, our breadth of tools to help power the travel ecosystem, and our effectiveness and efficiency as a company," Kern said.
Expedia stock is up 16% this year.
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