Nov 5 (Reuters) – Shares of Expedia Group slid nearly 7% premarket on Thursday after the travel booking firm’s below-par forecast for fourth-quarter revenue fueled growth concerns among investors.
Expedia’s shares were up about 12% this year as of Wednesday’s close, outperforming rival Booking Holdings and the Dow Jones US Travel and Leisure index that are down 20% and little changed, respectively.
• Expedia expects fourth-quarter revenue in the range of $3.69 billion to $3.75 billion, with the midpoint below analysts’ average estimate of $3.74 billion, according to data compiled by LSEG
• The US midterm election results along with the unrest in Europe and the Middle East led to a dour forecast, Expedia’s finance chief said
• Analysts at Baird called the softer forecast a surprise. J.P. Morgan noted that while the growth deceleration is “transitory,” it could raise some concerns
• BTIG expected Expedia to buck the trend of an underwhelming guide provided by rivals and hotels due to its higher US domestic exposure
• Expedia remains a “buy”-rated stock on average, but its median target price has moderated to $332.50 from $335 last month, LSEG-compiled data shows
• Most online travel booking sites and hotel chains have leaned on strong domestic demand to offset weakness in the Middle East
(Reporting by Nandan Mandayam in Bengaluru; Editing by Shreya Biswas)
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