Expedia, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Expedia, Inc. (NASDAQ:EXPE) will unveil its latest earnings on Thursday, July 28, 2011. 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. Investing in Airlines: “Carmaggedon” Brings Penny Wise Travel Deals>>

Expedia, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a rise of 12.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 44 cents. For the year, analysts are projecting profit of $1.71 per share, a rise of 11% from last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net income of 21 cents per share against an estimate of profit of 22 cents per share. The quarter before that, it missed expectations by 4 cents.

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Wall St. Revenue Expectations: On average, analysts predict $961.7 million in revenue this quarter, a rise of 15.3% from the year ago quarter. Analysts are forecasting total revenue of $3.81 billion for the year, a rise of 13.7% from last year’s revenue of $3.35 billion.

Analyst Ratings: Analysts seem relatively indifferent about Expedia with 12 of 18 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 14.5% to $822.2 million in first quarter. The figure rose 15.9% in the fourth quarter of the last fiscal year from the year earlier, climbed 15.9% in the third quarter of the last fiscal year from the year-ago quarter and 8.3% in the second quarter of the last fiscal year.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 12.4% from the year earlier quarter, while the figure dropped 30.3% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had risen $5.86 (24.2%) from $24.19 to $30.05. The stock price saw one of its best stretches over the last year between June 27, 2011 and July 5, 2011 when shares rose for six-straight days, rising 7.3% (+$2.04) over that span. It saw one of its worst periods between February 15, 2011 and March 1, 2011 when shares fell for 10-straight days, falling 9.3% (-$2) over that span. Shares are up $5.11 (+20.5%) year to date.

(Source: Xignite Financials)

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