Expedia surprises investors with CEO change
Shares of Expedia Group Inc. fell 13% in an extended session Thursday as investors grew uneasy about the CEO change and looked to beat the online travel company’s quarterly results.
Expedia EXPE,
It earned $132 million, or 92 cents per share, in the fourth quarter, compared with $177 million, or $1.11 per share, in the year-ago quarter.
Adjusting for one-time items, the company earned $1.72 per share. Sales rose 10% to $2.89 billion. Analysts surveyed by FactSet expected adjusted EPS of $1.67 and revenue of $2.87 billion.
“We delivered full-year guidance and delivered record results, while also completing a large-scale transformation and navigating the inherent volatility that came with it,” CEO Peter Kern said in a statement. “Our work is finally starting to deliver results and we are in a prime position technically.”
However, Expedia said in a separate press release that Kern has been replaced by Ariane Gorin, who has held various executive positions at Expedia since 2013, most recently serving as president of Expedia for Business.
The appointment is effective May 13, the company said. Kern has served as Expedia’s CEO since 2020 and will remain a member of the board of directors and vice chairman of the company to “ensure a smooth transition,” Expedia said.
Shares of Expedia ended the regular trading day Thursday up 3.3%. The stock is up 33% over the past 12 months, compared with a 21% rise for the S&P 500 index SPX over the same period.
