Expedia Inc. Earnings: Profit Drop Breaks Streak of Rising Profits

The Cheat Sheet

S&P 500 component Expedia Inc. reported its results for the fourth 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 Fourth Quarter

Results: Net income for the lodging company fell to $70.3 million (51 cents per share) vs. $71.3 million (50 cents per share) a year earlier. This is a decline of 1.4% from the year earlier quarter.

Revenue: Rose 6.7% to $787.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Expedia Inc. reported adjusted net income of 58 cents per share. By that measure, the company fell short of mean estimate of 62 cents per share. It fell short of the average revenue estimate of $815.3 million.

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 12 cents, and in the second quarter, it was ahead by 8 cents.

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 18.7% in the third quarter and 22.9% in the second quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 52 cents a share to 32 cents over the last sixty days. At $3.10 per share, the average estimate for the fiscal year has fallen from $3.62 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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