Expedia Earnings Cheat Sheet: Costs Impact Profits As Sales Fly 14.5% Higher

S&P 500 (NYSE:SPY) component Expedia, Inc. (NASDAQ:EXPE) reported a lower net income in the first quarter compared with a year earlier. Expedia Inc. provides travel products and services to leisure and corporate travelers in the United States and abroad as well as various media and advertising offerings to advertisers.

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Expedia Earnings Cheat Sheet for the First Quarter

Results: Net income for Expedia, Inc. fell to $52 million (19 cents/share) vs. $59.4 million (20 cents/share) a year earlier. A decline of 12.4% from the year earlier quarter.

Revenue: Rose 14.5% to $822.2 million YoY.

Actual vs. Wall St. Expectations: EXPE reported adjusted net income of 25 cents per share. By this measure, the company fell short of the mean analyst estimate of 26 cents/share. Estimates ranged from 23 cents per share to 28 cents per share.

Key Stats: From the fourth quarter of the last fiscal year, the company’s current liabilities rose to $2.65 billion from $1.89 billion.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 30.3% from the year earlier quarter.

Gross margins grew 0.4 percentage point to 78.4%. The growth seemed to be driven by increased revenue, as the figure rose 14.5% from the year earlier quarter while costs rose 12.5%.

Over the last five quarters, revenue has increased 13.5% on average year over year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 15.9% from the year earlier quarter.

Competitors to Watch: Orbitz Worldwide, Inc. (NYSE:OWW), Travelzoo Inc. (NASDAQ:TZOO), priceline.com Incorporated (NASDAQ:PCLN), MakeMyTrip Limited (NASDAQ:MMYT), Ctrip.com Intl., Ltd. (NASDAQ:CTRP), eLong, Inc. (NASDAQ:LONG) and American Airlines (NYSE:AMR).

Today’s Performance: Shares of EXPE are up a couple pennies in after hours trading.


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