Expedia Earnings: Profit Dips, Yet Double Digit Revenue Growth

S&P 500 (NYSE:SPY) component Expedia Inc. (NASDAQ:EXPE) reported its results for the second quarter. 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 $105.2 million (76 cents per share) vs. $140.4 million ($1.01 per share) a year earlier. This is a decline of 25% from the year-earlier quarter.

Revenue: Rose 13.8% to $1.04 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Expedia Inc. beat the mean analyst estimate of 62 cents per share. It beat the average revenue estimate of $990.7 million.

Key Stats:

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 17 cents versus a mean estimate of net income of 5 cents per share.

After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $70.3 million, or 53 cents per share, in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from $1.14 a share to $1.17 over the last ninety days. For the fiscal year, the average estimate has moved down from $2.54 a share to $2.48 over the last sixty days.

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

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