Expedia Earnings: Margins Expand, Stock Explodes Up

Rising costs hurt S&P 500 (NYSE:SPY) component Expedia Inc. (NASDAQ:EXPE) in the third quarter as profit dropped from a year earlier. Expedia 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 Inc. Earnings Cheat Sheet

Results: Net income for Expedia Inc. fell to $171.5 million ($1.20 per share) vs. $209.5 million ($1.22 per share) a year earlier. This is a decline of 18.2% from the year-earlier quarter.

Revenue: Rose 17.5% to $1.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Expedia Inc. reported adjusted net income of $1.32 per share. By that measure, the company beat the mean estimate of $1.17 per share. It beat the average revenue estimate of $990.7 million.

Key Stats:

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 20 cents in the second quarter and by 12 cents in the first quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 51 cents per share, down from 52 cents ninety days ago. For the fiscal year, the average estimate has moved up from $2.50 a share to $2.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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