Skift Take
Expedia still finds itself swallowing Priceline's dust, but Expedia is making a solid showing.
Expedia Inc. surged as much as 16 percent in extended trading after the second-biggest online travel agency by market value reported third-quarter earnings that topped analysts’ estimates.
Excluding some items, profit rose 4.2 percent to $188 million, or $1.32 a share, from $180.5 million, or $1.28, a year earlier, the Bellevue, Washington-based company said today in a statement. Analysts on average expected profit to decline to $1.26 a share, according to a Bloomberg survey.
Expedia, which gets more than 40 percent of its business outside the U.S., expanded even as the European sovereign-debt crisis entered its third year. International revenue rose 22 percent in the period, surpassing domestic growth of 14 percent. Hotel reservations accounted for 77 percent of worldwide sales, while 7 percent came from airlines.
Expedia rose as high as $59.70 in trading after the report. The stock has almost doubled in the past year and, based on its after-hours price, is close to its record reached last month.
Priceline.com Inc., Expedia’s larger rival, has yet to report quarterly results. The Norwalk, Connecticut-based company generated 60 percent of sales last year outside of the U.S.
–Editors: Reed Stevenson, Stephen West
To contact the reporter on this story: Ari Levy in San Francisco at [email protected]
To contact the editor responsible for this story: Tom Giles at [email protected]
Have a confidential tip for Skift? Get in touch
Tags: expedia