12:32 PM EDT, 08/09/2024 (MT Newswires) -- Expedia's ( EXPE ) strong Q2 results reflected its operational strength but the company posted lower-than-expected guidance for Q3 and the full year, demonstrating softer industry trends, Wedbush said in a note on Friday.

The company reported on Thursday Q2 adjusted earnings of $3.51 per share on revenue of $3.56 billion. Analysts polled by Capital IQ expected $3.16 and $3.53 billion, respectively.

"Q2 results were notably strong relative to peers and the company continues to make progress in longer-term oriented initiatives that could support stronger growth in a more normalized environment," Wedbush said.

Expedia ( EXPE ) expects Q3 gross bookings growth of 3% to 5% year over year, below the consensus of 6.7%, and estimates full-year gross bookings growth at 4%, versus the consensus of 5.5%, according to the note.

The firm said the guidance is impacted by industry-wide "moderating demand trends, macro uncertainty, tightening booking windows and softer pricing and [average daily rates] across flights and hotels."

Wedbush raised its price target on Expedia ( EXPE ) to $130 from $125 and reiterated its neutral rating.

Shares of the company were up 9.1% in recent Friday trading.

Price: 128.75, Change: +10.78, Percent Change: +9.14