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Expedia shares slide after below-par quarterly revenue forecast fuels concerns

By Reuters News

Nov 5 (Reuters) - Shares of Expedia Group EXPE.O 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 BKNG.O and the Dow Jones US Travel and Leisure .DJUSCG 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


Expedia Shares https://fingfx.thomsonreuters.com/gfx/mkt/akpelkrarvr/Expedia%20Shares.png

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