Expedia to Rein in Costs Following Mixed Results in Q4

Investing.com – Expedia (NASDAQ:) said it expected to rein in costs after reporting fourth-quarter results on Thursday that beat on the bottom line but fell short of expectations on the top line.

Expedia (NASDAQ:) announced earnings per share of $1.24 on revenue of $2.75B. Analysts polled by Investing.com anticipated EPS of $1.19 on revenue of $2.76B. That with comparison to EPS of $1.18 on revenue of $2.56B in the same period a year before. Expedia had reported EPS of $3.38 on revenue of $3.56B in the previous quarter. Analysts are expecting EPS of $-0.28 and revenue of $2.82B in the upcoming quarter.

Gross bookings increased 6% in the quarter, driven primarily by growth in Expedia Partner Solutions, which includes the benefit from enterprise deals launched in late 2018, and Hotels.com.

Domestic gross bookings increased 7% and international gross bookings increased 4%.

Lodging revenue increased 9% in the fourth quarter on an 11% increase in room nights stayed, but that was partly offset by a 2% decrease in revenue per room night.

“We are targeting $300-to-500 million of run-rate cost savings across our business,” Expedia said.

Expedia shares are up 2.22% from the beginning of the year , still down 23.24% from its 52 week high of $144.00 set on July 26, 2019. They are under-performing the Nasdaq which is up 7.44% year to date.

Expedia shares gained 3.99% in after-hours trade after the report.

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