(Bloomberg) -- Expedia Group Inc. swung to a profit in the third quarter, boosted by its vacation-rental unit Vrbo amid increased travel demands over the summer. The shares surged 11% in extended trading.
Net income was $362 million in the three months ending September, compared with a loss of $221 million a year earlier, the company said in a statement. Earnings per share, excluding some costs, were $3.53, topping analysts' estimates for $1.63, according to data compiled by Bloomberg. Revenue rose 97% to $2.96 billion, beating analysts' forecasts.
“With early positive signs in Q4 and many countries announcing new openings to international travelers, we are feeling increasingly confident about a continued recovery,” Chief Executive Officer Peter Kern said.
Expedia follows other online travel companies in showing a recovery from the early days of the Covid crisis, when travel was all but halted. Airbnb Inc. reported record sales and earnings and Booking Holdings Inc. reported a strong third quarter with gross bookings up 77% from a year earlier.
The arrival of the delta variant in early summer did prompt some pullback in travel plans, executives have said, but ultimately pent-up demand won out in many markets. Expedia acknowledged, however, that there was “continued volatility in the travel recovery.”
Bellevue, Washington-based Expedia said gross bookings more than doubled to $18.7 billion, but fell short of Wall Street analysts' estimates of $20.7 billion.
Expedia shares have gained 19% this year, slightly trailing Airbnb but far outperforming Booking.
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