Shares Expedia Premarket trades Tuesday saw a 2% increase in NASDAQ shares. The travel agency announced a stronger-than-expected Q1 adjusted EBITDA. It also stated that it anticipates strong leisure travel recovery.

In Q1, the company reported a 47c adjusted loss per common share, which was compared with the $2.02 per-share loss in the prior year period and the expected 43c loss per common share. The revenue was $2.25 Billion, an increase of 80% YoY. This is in line with consensus estimates.

Expedia booked $24.41 billion of gross reservations, which is just under the $24.53 billion estimate. Analysts were expecting 64.8%. However, Expedia reported that there was a 52% increase in stayed-room nights.

Expedia stated that travel has reached its highest point since the outbreak of coronavirus, even though Ukraine’s invasion had impacted on recovery. According to Expedia, there are positive signs for a strong recovery of leisure travel in this summer.

Ronald Josey, Citi Analyst, reiterated his Neutral rating because he feels shares are fair-valued at the current level.

“We emerge incrementally confident that leisure and business travel continue to gain momentum into the seasonally strong summer travel season. We point to April’s accelerating lodging growth of 10% vs. March’s +7% when compared to 2019, and we believe Expedia’s North America business is now fully recovered. We were particularly encouraged with continued strength at VRBO – which bodes well for Airbnb, which reports tomorrow after the close – and we look for new product announcements from Expedia’s Explore conference later this week,” Josey said in a client note.

Stifel analyst Scott Devit said Expedia delivered “mixed” results.

“Expedia is yet to observe any demand softness stemming from changes in the macro backdrop and continues to expect a notably strong summer travel period. We are modestly reducing our estimates reflecting QTD trends, though we still expect meaningful sequential improvement in 2Q as the travel recovery remains resilient,” Devitt wrote.

By Senad Karaahmetovic