Expedia shares tumble late despite 37% profit rise amid CEO change | Investor business daily

Expedia.com (EXPE) announced a CEO change late Thursday while beating fourth-quarter earnings estimates. Expedia stock fell in extended trading Thursday after hitting a 52-week high.

Ariane Gorin, president of Expedia for Business, will succeed Peter Kern as CEO effective May 13, the company said in a press release.




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Expedia’s earnings growth is accelerating

Estimates: Analysts forecast Expedia earnings of $1.67 per share, up 33% year over year. According to FactSet, revenue was expected to rise 9.7% to $2.873 billion.

During the key holiday quarter, Wall Street forecast bookings grew 7.2% to $21.997 billion.

Results: Earnings of $1.72 per share, up 37% and an acceleration from a 33.6% gain in the previous quarter.

Revenue rose 10% to $2.887 billion. Gross bookings increased 6% to $21.672 billion.

Expedia shares break out after key support

Shares of the online travel and booking site fell 15.3% in late trading. Expedia stock rose 3.3% to 159.47 on the stock market today. Online trave shares hit a buy point of 155.84 after a six-week flat base after trying to do so on Wednesday, according to MarketSmith charts.

The breakout came as part of this week’s strong recovery against the 10-week moving average.

But buying just before earnings is very risky.

The 7% deep flat base came after a huge move from early November to late December.

Both Expedia and Booking.com (BKNG) are on the IBD rankings watchlist.

Booking stocks rose 3.5% to a record high on Thursday. Shares are on track for their sixth straight rise, recovering from their 10-week line.

Travel recovers after a breakdown

As travel demand rebounds, Expedia is up 32% over the past year. It…

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