Online travel agency Expedia Inc. (EXPE) on Friday said it swung to a first quarter loss due to special charges, but adjusted results blew away expectations, sending its shares much higher in premarket trading.
The Bellvue, WA-based company reported a first quarter net loss of $3.28 million, or -2 cents per share, compared with a net profit of $52.04 million, or 37 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 26 cents per share.
Revenue rose 12% from last year to $816.5 million.
On average, Wall Street analysts expected a much lower profit of 15 cents per share, on smaller revenue of $790.91 million.
Expedia shares exploded higher in premarket trading Friday, up $6.40, or +20%.
The Bottom Line
Shares of Expedia (EXPE) have a .86% dividend yield, based on last night’s closing stock price of $32.63. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $38-$40 price levels.
Expedia Inc. (EXPE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.