Expedia (EXPE) Stock Plummets in After-Hours Trading on Q2 Revenue Miss
NEW YORK (TheStreet) -- Shares of Expedia (EXPE) - Get Report are falling 5.89% to $112.25 in after-hours trading on Thursday after the company posted weaker-than-expected revenue for the 2016 second quarter.
After today's market close, the Bellevue, WA-based online travel company posted revenue of $2.196 billion, up 32% year-over-year, but lower than analysts' estimates of $2.25 billion.
Expedia reported adjusted earnings of 83 cents per share, beating analysts' expectations of 78 cents per share.
Gross bookings increased 25% to $3.8 billion year-over-year.
About 4.27 million of the company's shares were traded today vs. its average volume of 1.96 million shares per day.
Separately, Expedia and the founders of trivago have agreed to explore the feasibility of an IPO of trivago shares, but Expedia said it "does not presently anticipate selling nay of trivago shares in an initial public offering, should it occur, and there are no guarantees an IPO will be pursued or be successful."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate EXPEDIA INC as a Buy with a ratings score of B-. This is driven by multiple strengths, 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, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its 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