By Anshuman Tripathy
Nov 4 (Reuters) – Online travel firm Expedia Group forecast fourth-quarter revenue largely below Wall Street expectations, as the industry struggles with the Middle East conflict and unrest in Europe, sending its shares down about 6% in extended trade.
The company on Wednesday projected fourth-quarter revenue in the range of $3.69 billion to $3.75 billion, with the midpoint below analysts’ estimates of $3.74 billion.
The downbeat forecast overshadowed a beat on third-quarter revenue and profit, as steady spending by affluent consumers supported international travel demand amid persistent inflation.
“The US consumer was strong both in domestic travel and in outbound to Europe and Asia,” CEO Ariane Gorin told Reuters.
Gorin pinned moderation in the fourth-quarter forecast on the US midterm elections and unrest in the Middle East and Europe.
Her comment echoes those from peer Booking Holdings on Tuesday on travel disruptions to and from the Middle East and the impact of elevated airfares, alongside unrest in certain European cities.
Hotel operators including Hilton and Marriott have also flagged a drag from the Middle East conflict on their fourth-quarter results, along with impact from the elections.
In Europe people traveled more domestically than long-haul outbound, Gorin noted.
Expedia raised its annual gross bookings forecast to the range of $131.4 billion to $131.9 billion, from $129.5 billion to $130.8 billion earlier.
Analysts on average were expecting annual gross bookings of $130.22 billion, according to data compiled by LSEG.
The Seattle-based company expects annual revenue of $16.37 billion to $16.43 billion, compared with $16.05 billion to $16.22 billion previously.
Expedia reported third-quarter adjusted profit of $9.39 per share, beating Wall Street estimates of $8.89.
The Vrbo parent’s revenue rose about 12% to $4.94 billion for the quarter ended September 30, beating estimates of $4.74 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Sriraj Kalluvila)
