Expedia Inc. Earnings Cheat Sheet: Another Solid Sales Quarter

S&P 500 (NYSE:SPY) component Expedia, Inc. (NASDAQ:EXPE) reported net income above Wall Street’s expectations for the third 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income rose to $209.5 million (75 cents per share) vs. $176.6 million (62 cents per share) in the same quarter a year earlier. This marks a rise of 18.7% from the year earlier quarter.

Revenue: Rose 15.5% to $1.14 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EXPE reported adjusted net income of 77 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. Analysts were expecting revenue of $1.16 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 16.9%, with the biggest boost coming in the second quarter when revenue rose 22.7% from the year earlier quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 50 cents versus a mean estimate of net income of 46 cents per share.

Net income has increased 10% year over year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 50.9% from the year earlier quarter.

Gross margins grew 0.9 percentage point to 81.6%. The growth seemed to be driven by increased revenue, as the figure rose 15.5% from the year earlier quarter while costs rose 10.3%.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is 38 cents per share, a drop from 39 cents. The average estimate for the fiscal year is $1.80 per share, a rise from $1.71 ninety days ago.

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).

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(Source: Xignite Financials)