Earnings stock to watch: Expedia Group Inc (NASDAQ: EXPE)

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Expedia Group Inc (NASDAQ: EXPE) stock rose over 2.5% in the pre-market session of May 21st, 2020 (as of 7:20 am GMT-4 ; Source: Google finance) even though the company reported a first-quarter loss of $1.3 billion, compared to a loss of $103 million in the year-ago period. For the quarter, total gross bookings declined by 39% as the spread of the virus became a global pandemic during March. In January, gross bookings growth was positive, in February, gross bookings fell year over year as the virus spread, particularly into Europe & in March it fell significantly as North America, the largest region got affected. Revenue grew in January and February before declining significantly year-over-year in March. Cash, cash equivalents and short-term investments totaled $4.1 billion at the end of March, 2020. For the quarter, consolidated net cash used in operating activities was $784 million and consolidated free cash flow totaled negative $1.1 billion. The consolidated free cash flow fell $2.9 billion in the first quarter of 2020 compared to the prior year period mainly due to a significant use of cash for working capital compared to a cash benefit from working capital in the prior year period, as well as a fall in adjusted EBITDA.

EXPE in the first quarter of FY 20 has reported the adjusted loss per share of $1.83, missing the analysts’ estimates for the adjusted loss per share of $1.26, according to analysts surveyed by FactSet. The company had reported 15 percent fall in the adjusted revenue of $2.21 billion in the first quarter of FY 20, which is in line with the analysts’ estimates for revenue of $2.21 billion.

Lodging revenue, that accounts for 69% of total worldwide revenue had fallen 10% in the first quarter of 2020 due to a 14% decline in room nights stayed, which was partly offset by a 5% rise in revenue per room night. Air revenue fell 56% in the first quarter of 2020 on the back of a 41% fall in revenue per ticket and a 26% fall in air tickets sold. The declines in air revenue is due to the adverse impact of COVID-19 on air travel, including increased cancellation activity during March. Advertising and media revenue fell 23% in the first quarter of 2020 due to fall at trivago and Expedia Group Media Solutions.

Additionally, the company did not repurchase any shares since the fourth quarter 2019 earnings on February 13, 2020, and have suspended future share repurchases. The company has paid a quarterly dividend of $48 million ($0.34 per common share), and now have suspended all future quarterly dividends.

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