Expedia shares dive on Q4 results, CEO to step down

The news: Shares in travel group Expedia dropped in after-hours trading as the US firm's fourth-quarter profit and gross bookings failed to meet analysts' expectations.

The numbers: Expedia shares plunged 12.7% at 5:30pm EST (9:30am AEDT) on the Nasdaq after a 3.3% rise by market close.

The online travel company's profit dropped to USD132 million ($203 million) from USD177 million compared to the previous corresponding period. Gross bookings were up 6% to USD21.67 billion for the quarter, but missed analysts' expectations of USD22 billion. Revenue, however, beat analysts' forecast of USD2.87 billion, rising 10% to USD2.89 billion for the three-month period.

The context: Expedia also announced that CEO Peter Kern, who has been at the helm since 2020, will step down in May. He will be replaced by president of Expedia for Business Ariane Gorin, who has been at the company for 11 years. Kern will continue to serve as the company's vice chair and remain on its board, which he has been on since 2005.