Expedia Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Expedia, Inc. (NASDAQ:EXPE) will unveil its latest earnings on Thursday, October 27, 2011. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 70 cents per share, a rise of 11.1% 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 68 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 70 cents during the last month. For the year, analysts are projecting profit of $1.80 per share, a rise of 16.9% from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported net income of 50 cents per share versus a mean estimate of profit of 46 cents per share. In the first quarter, the company missed estimates by one cent.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 17.4% in revenue from the year-earlier quarter to $1.16 billion.

Analyst Ratings: eight out of 15 analysts surveyed (53.3%) have a buy rating on Expedia.. This is below the mean analyst rating of 10 competitors, which average 56.8% buy ratings.

A Look Back: In the second quarter, profit rose 22.9% to $140.4 million (50 cents a share) from $114.3 million (40 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 22.7% to $1.02 billion from $834 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 17.3%, with the biggest boost coming in the most recent quarter when revenue rose 22.7% from the year earlier quarter.

The increase in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit decreases. The figure dropped 12.4% in the first quarter and 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 July 28, 2011 to October 21, 2011, the stock price had fallen $1.10 (-3.8%) from $28.92 to $27.82. 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. 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% (+$2.03) over that span. Shares are up $2.94 (+11.8%) year to date.

(Source: Xignite Financials)

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