Expedia Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Expedia (NASDAQ:EXPE) will unveil its latest earnings on Tuesday, February 5, 2013. 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.

Expedia Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 55 cents per share, a rise of 10% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 54 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 55 cents during the last month. Analysts are projecting profit to rise by 8.7% versus last year to $2.74.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of $1.22 per share versus a mean estimate of profit of $1.17 per share.

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A Look Back: In the third quarter, profit fell 18.2% to $171.5 million ($1.21 a share) from $209.5 million ($1.50 a share) the year earlier, but exceeded analyst expectations. Revenue rose 5.1% to $1.2 billion from $1.14 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 18.1% in revenue from the year-earlier quarter to $929.8 million.

Stock Price Performance: Between November 1, 2012 and January 30, 2013, the stock price rose $5.98 (10%), from $59.68 to $65.66. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 26, 2012, when shares rose for eight straight days, increasing 9.9% (+$5.47) over that span. It saw one of its worst periods between July 2, 2012 and July 12, 2012 when shares fell for eight straight days, dropping 10.4% (-$5.13) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 1.6% in the second quarter before climbing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 10 of 18 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.94 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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