Expedia shares rally after big earnings beat

  • Expedia Group reported a profit of $1.38 per share on Thursday, beating the 89 cent consensus estimate by Thomson Reuters.
  • The company also reported that gross bookings increased 13 percent from last year, boosted by a 33 percent year-over-year jump in HomeAway bookings and an 11 percent gain in bookings from its core business.
Visitors browse at the display of Expedia during the International Tourism Trade Fair in Berlin.
Fabrizio Bensch | Retuers
Visitors browse at the display of Expedia during the International Tourism Trade Fair in Berlin.

Expedia Group shares jumped on Friday after the travel website operator reported a quarterly profit well above estimates.

The company reported a second-quarter profit of $1.38 per share on Thursday, beating the 89 cent consensus estimate by Thomson Reuters. Revenue for the second quarter, meanwhile, fell in line with analysts' expectations at $2.88 billion.

The stock had its best day since April 27, with shares closing up 9.5 percent at $137.79 per share.

Expedia also reported that gross bookings increased 13 percent from last year, boosted by a 33 percent year-over-year jump in HomeAway bookings and an 11 percent gain in bookings from its core business.

"We've delivered solid financial results while continuing to push forward on several critical initiatives aligned with the three strategic themes I outlined late last year, becoming more locally relevant on a global basis, becoming more customer-centric and speeding up the pace of execution and innovation," said Expedia CEO Mark Okerstrom.

Shares of the company were up 13 percent year to date through Friday's close.