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Expedia Inc. shares jumped in after-market trading after saying it would realize more cost-savings than originally projected from its $1.3-billion acquisition of Orbitz Worldwide Inc.
The travel website, based in Bellevue, Washington, rose as much as 18 percent to $149.75 in extended trading. The stock closed at $127.06 in New York, leaving it up 49 percent this year and near record highs.
Efficiencies from the Orbitz merger will be more than the original forecast for $75 million, Expedia Chief Financial Officer Mark Okerstrom said on the company’s third-quarter conference call.
The company reported earnings per share, excluding some items, of $2.07, compared with analysts’ average estimate of $2.02, according to data compiled by Bloomberg. Total third-quarter revenue rose 13 percent to $1.94 billion, matching projections.
Expedia is working to integrate Orbitz after getting regulatory approval for the deal in September. The acquisition is part of a wave of consolidation in the online travel industry as Expedia and rivals Priceline Group Inc. and TripAdvisor Inc. seek to gain share, while Google pushes into the market.
This article was written by Gerrit De Vynck from Bloomberg and was legally licensed through the NewsCred publisher network.