Expedia Soars 15% After Terrific Third Quarter
Shares of online travel site Expedia (NASDAQ: EXPE) were among the leaders on the Nasdaq on Friday after the company reported blowout third-quarter results on Thursday after the closing bell. The stock closed the session up 15.24 percent to $59.06. After the big jump in the share price, EXPE is now sitting just below a key resistance level.
In recent years, EXPE has tested the $60.00 level numerous times, but has been unable to hold above this area for any significant period. Traders will want to keep a close eye on this stock in the coming weeks, as a further breakout above $60.00 could be powerful in nature and send the stock to all-time highs in 2013.
Although Expedia posted a decline in earnings compared to last year's third-quarter, its net income and revenue both topped Wall Street expectations. Furthermore, on an adjusted basis, which excludes special items, the company's earnings per share rose over last year's corresponding period.
Gross bookings in the period increased 19 percent, including a 27 percent gain in hotel room nights and a 11 percent increase in airline tickets.
Expedia reported that its GAAP net income fell to $171.5 million or $1.20 per share, compared to $209.5 million or $1.22 per share, in the year ago period. On an adjusted basis, however, which is comparable to analysts' consensus, the company reported earnings per share of $1.32 from $1.28 in last year's third quarter. This easily beat analysts' consensus EPS estimates of $1.26.
Revenue in the quarter was up 17 percent to $1.20 billion from $1.02 billion last year. This also exceeded Wall Street consensus revenue estimates of $1.17 billion. Domestic revenue rose 14 percent in the quarter, while international revenue surged 22 percent.
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