Expedia Plummets on Lower Q2 Profit

Shares of online travel website

were crushed in late trading on Thursday after the company released its fiscal second-quarter earnings results. The company missed Wall Street earnings per share estimates by a wide margin and also reported revenues that failed to meet expectations. In late trade, the stock had plunged more than 24 percent to $49.20 after closing the regular session at $65.00.

“We knew we were facing second quarter headwinds and those which we expected, as well as some we didn't, materialized. Despite this, we remain confident about our long term strategy. We see continued return on our core brands' technology investments, broader adoption of Expedia Traveler Preference Program, momentum in our recent acquisitions and emerging markets as well as exciting traction in one of travel's fastest growth channels mobile,” said Dara Khosrowshahi, Expedia, Inc. President and Chief Executive Officer.

Expedia reported net income of $71.5 million or $0.51 per share, compared to income of $105.2 million or $0.76 per share, in last year's corresponding period. On an adjusted basis, net income fell to $90.5 million or $0.64 per share, versus $124.8 million or $0.89 per share, in last year's corresponding period. This missed Wall Street analysts' consensus EPS estimates of $0.79 by a wide margin. Revenue in the quarter rose 16 percent to $1.21 billion from $1.04 billion last year. This also came up short of consensus estimates which were pegged at $1.26 billion.