Earnings Preview: Expedia Inc.

ASHLEY M. HEHER

CHICAGO (AP) — Expedia Inc. reports its results for the third quarter before the market opens Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Expedia, which owns also owns Expedia.com, Hotwire.com, TripAdvisor.com and Hotels.com, is the world's No. 1 online travel agency.

Last summer, the company said it was permanently eliminating fees it used to charge consumers to book flights or change or cancel reservations. The move, which came two years after rival Priceline.com canceled its flight booking fees, was then mimicked by competitors.

Expedia also has tried to cut costs by consolidating its Tacoma, Wash., and Dallas call centers.

BY THE NUMBERS: Analysts polled by Thomson Reuters predict the company will earn 43 cents per share on revenue of $828.9 million for the quarter. Last year, Expedia earned $99.6 million, or 32 cents per share, on revenue of $759.6 million.

ANALYST TAKE: Deutsche Bank analyst Herman Leung told investors in a research note that he expects "solid" results from the company, in part because hotel rates are dropping as lodging companies struggle to fill empty beds. The expected boost in bookings should help Expedia, which gets the largest chunk of its business from hotel bookings and can use its wide audience to get guest-starved hotels to list their discounted rooms on its service.