Shares of Expedia plunged more than 13% on Tuesday after reporting mixed financials in what’s been a tough earnings season.
The company reported first-quarter financials after the bell on Monday. Expedia lost 47 cents per share on $2.25 billion in revenue. Analysts had expected the company to report a loss per share of 62 cents on $2.23 billion in revenue.
The company, which also owns the Vrbo platform, reported gross bookings of $24.41 billion, compared to Wall Street’s expected $25.89 billion, according to FactSet. Expedia also missed on room nights booked. The company reported 56.5 million room nights, compared to analyst projections of 64.28 million, per FactSet.
At least eight firms cut their price target on the stock following the report.
“Results were below our expectations given the impact of Omicron, as well as geopolitical uncertainty,” Credit Suisse analysts said in a note. The firm slashed its price target to $225 from $231.
Travel executives from a range of industries have said they’re optimistic about this summer’s travel season, with consumers ready to travel again. But there was a slight impact from the omicron coronavirus variant and the war in Ukraine slowing European travel this quarter, Expedia CEO Peter Kern said on the company’s call with investors. Inflation could also be weighing on consumers’ plans.
CNBC’s Michael Bloom contributed to this report.
