Expedia, Inc. Earnings: Margin Expands Boosted by Rising Revenue, Net Income Rises

S&P 500 (NYSE:SPY) component Expedia, Inc. (NASDAQ:EXPE) reported net income above Wall Street’s expectations for the second quarter. 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 Second Quarter

Results: Net income rose to $140.4 million (50 cents per share) vs. $114.3 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 22.9% from the year earlier quarter.

Revenue: Rose 22.7% to $1.02 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: EXPE beat the mean analyst estimate of 46 cents per share. It beat the average revenue estimate of $961.7 million.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 14.5% to $822.2 million in the first quarter. The figure rose 15.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 15.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by one cent, and in the fourth quarter of the last fiscal year, it fell short by 4 cents.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 12.4% while the figure dropped in the fourth quarter of the last fiscal year.

Gross margins grew 3.7 percentage points to 83.5%. The growth seemed to be driven by increased revenue, as the figure rose 22.7% from the year earlier quarter while costs remained unchanged.

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)