Expedia Sees Drop in Q4 Earnings; Misses Estimates (EXPE)

Travel services company, Expedia Inc(EXPE) reported a drop in Q4 profits due to legal fees, missing analysts estimates on Wednesday.

The Bellevue, WA based company reported fourth quarter net income of $6.7 million, or 5 cents per share, down -90% from 70.3 million, or 51 cents per share last year. Excluding special items, net income was $88.9 million, or 63 cents per share, missing analysts estimate of 65 cents per share

Revenue for the quarter was $974.9 million, up 24% from $787.13 million last year. Analysts expected to see $930.7 million. The company saw an upside in both international and domestic sales, with international revenue growing by 35% and domestic sales increasing by 15%.

Although sales were up during the quarter, the company’s earnings suffered due to legal fees related to a Hawaii tax court litigation.

On the upside, Expedia saw a 19% increase in gross bookings, which included a 33% growth in the number of hotel rooms booked, and a 12% increase in the sale of airline tickets. Although the average room rate fell by -3%, airfare prices increased by 2%

The company saw an increase in expenses during the quarter, with marketing costs rising 25% and technology expenses increasing 31%. Administrative costs also grew by 12% during the quarter.

Expedia shares were up $1.21, or 1.79% during premarket trading Wednesday. The stock has increased 97% in the last year.

The Bottom Line
Shares of Expedia Inc(EXPE) have a 0.77% yield, based on Tuesday’s closing price of $67.50.

Expedia Inc(EXPE) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here