Feb 9 (Reuters) – Online travel booking company Expedia Group Inc (EXPE.O) missed Wall Street estimates for fourth-quarter profit on Thursday, as severe weather conditions toward the end of the year hurt its business despite strong travel demand.
A harsh winter storm in December snarled airport operations around the United States leading to thousands of flight cancellations, spoiling holiday plans for travelers.
Shares in the company fell 7.6% after the bell.
“While our Q4 results were negatively impacted by severe weather, demand was otherwise strong and accelerating,” Expedia Chief Executive Officer Peter Kern said in the company’s earnings release.
Expedia reported fourth-quarter adjusted profit of $1.26 per share for the quarter ended Dec. 31, short of estimates of $1.67 per share, according to Refinitiv data.
Expedia’s revenue of $2.62 billion missed Street estimates of $2.7 billion.
Meanwhile, the Seattle-based company reported $20.5 billion in total gross bookings across its travel products including lodging and flights, up 17% a year prior.
Reporting by Shivansh Tiwary in Bengaluru and Doyinsola Oladipo in New York; Editing by Anil D’Silva and Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles.
Expedia profit misses as severe weather weighs on holiday quarter, shares fall
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