Demand Returns to Expedia
Expedia (EXPE) feasted on renewed demand among frugal travelers for airline tickets and hotel rooms in the second quarter, posting a profit that was twice what it earned a year ago on a big rise in revenue.
The travel Web site earned $41.3 million, or 30 cents a share, in the second quarter compared with earnings of $20.1 million, or 15 cents a share, last year. Revenue was $247.5 million, up 71% from last year.
Expedia's merchant revenue, which represents money from package deals with hotels and airlines, soared 82% year over year to $155.8 million, while agency revenue, which is mainly commissions from stand-alone and airline tickets, shot up 57% to $86.2 million.
The company reported 4.6 million total hotel room-nights stayed in the quarter, including 3.7 million merchant room-nights. Merchant room-nights stayed increased 32% sequentially and 80% year over year.Adjusted to exclude amortization, stock-based compensation and other items, the company earned $53.1 million, or 38 cents a share. The metric is primarily useful because of its comparability to analysts' estimates, and on that basis, the company beat by 7 cents a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV