06:25 PM EDT, 05/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Expedia ( EXPE ) reported mixed Q1 results, with sales of $2.99B (+3.4% Y/Y) missing estimates of $3.02B, while adjusted EPS of $0.40 (+92% Y/Y) beat consensus by $0.04. Booked room nights grew 6% Y/Y, in line with guidance but showing deceleration, as U.S. demand softened due to declining consumer sentiment and pressure on U.S inbound travel. B2B gross bookings (+14% Y/Y) and Advertising (+20% Y/Y) were bright spots, while Vrbo showed modest growth and Hotels.com declined due to U.S. weakness and FX headwinds. Management lowered its 2025 sales growth outlook to 2%-4% from 4%-6%, citing FX headwinds and macroeconomic uncertainty, but raised margin expansion guidance for Q2 to 75 bps to 100 bps from 50 bps. We believe increasing advertising costs, at nearly 60% of revenue, indicate rising competitive pressures in the Online Travel Agency (OTA) industry, though EXPE demonstrated ability to expand margins through cost efficiencies in customer service and technology.