By midmorning, shares had added 13.5% to $73.95.
After the bell Thursday, the online travel site posted quarterly revenue of $1.15 billion, 18% higher year-over-year. The increase in sales was driven by a 25% jump in hotel room nights booked and as advertising sales generated more income.
Washington-based Expedia recorded net income of 92 cents a share, six cents higher than analysts surveyed by Thomson Reuters had expected.Over fiscal 2013, Expedia earned $3.22, a nickel over consensus, and generated $4.77 billion in sales compared to estimates of $4.75 billion. Expedia's rally trickled down to its online travel competitors. Tripadvisor (TRIP - Get Report) led the pack, adding 9.7% to $84.64, Orbitz (OWW - Get Report) climbed 5.1% to $7.49, and Priceline (PCLN - Get Report) popped 2.5% to $1,166.45. Tripadvisor will report fourth-quarter earnings on Tuesday, Feb. 11. Orbitz reports results on Feb. 13 and Priceline is due for Feb. 20. Must Read: Expedia Now #412 Largest Company, Surpassing Masco TheStreet Ratings team rates EXPEDIA INC as a Buy with a ratings score of B. The team has this to say about their recommendation: "We rate EXPEDIA INC (EXPE) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: EXPE Ratings Report