Expedia (NASDAQ:EXPE) opened more than 10% lower on Thursday as it reported second-quarter revenue that missed Wall Street estimates.
The travel booking platform posted record 2Q revenue of $3.36 billion, up 6% from $3.2 billion in the year-ago quarter but falling short of the consensus analyst estimate of $3.37 billion.
Gross bookings across flights, hotels, car rentals, activities, and vacation rentals grew 5% to $27.3 billion, below the forecast of $28.9 billion.
On a positive note, Expedia (NASDAQ:EXPE) reported a profit of $385 million or earnings per share (EPS) of $2.54, a significant improvement from a net loss of $185 million or a loss per share of $1.17 in the year-ago quarter.
EPS topped expectations of $2.35 by $0.54.
Booked room nights rose 9% over the same period last year, up from 82.5 million to 89.7 million.
Despite its much-improved bottom line, the company did not raise its full-year guidance which may have added to investor disappointment around the stock.
Expedia shares were down 10.2% at US$106.24 at the opening bell Thursday.
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