Expedia Rocks It On Strong International Performance
Strong earnings from Expedia sent the stocky flying in afterhours trade, as the company posted second quarter earnings above expectations as the online booking agency leveraged its international operations and took advantage of a cheap dollar.
Expedia posted net income of $140.4 million, up 23%; operating income was $227 million, up 17% from the same period a year ago. The company earned 55 cents per share, beating Wall Street’s consensus forecast of 49 cents.
Revenue hit $1.02 billion, also beating Street expectations (of $962 million). Expedia saw gross bookings increase 19% to %7.95 billion as the total number of transactions hit 19.4 million, up 15% from a year ago. Rising volume along with higher prices for flight tickets and hotel rooms helped the company in the second quarter, along with a favorable impact from currency translation. (Read Boeing Looks Good: Sales Taking Off, Outlook Raised, Dreamliner On Deck).
Expedia’s international operations are growing in scope and importance. International bookings, for example, totaled $3 billion in the quarter, accounting for 38% of bookings, compared with 33% a year ago. International revenue, which hit $437 million, made up 46% of total revenue, up from 36% a year ago. (Read Jet Blue Descends To 52-Week Low, Competitors Ride FAA Tax Disappearance Updraft).
Joining forces with one of tech’s hottest new names, Expedia signed a deal partnership with Groupon. Together, they sold 15,000 discounted tickets within the first three days of their partnership.
Shares in Expedia have had a good 2011, up more than 15% so far. Investors dumped the stock during Thursday’s session, sending it down 2.6% to $28.99 as the closing bell rung. Strong earnings, though, flipped the pancake, with the stock reversing all those losses in afterhours trading, up 5.2% or $1.51 to $30.50 by 5:24 PM in New York.
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