NEW YORK (TheStreet) --Expedia (EXPE) - Get Report reported mixed 2016 second quarter earning results after Thursday's closing bell. The online travel company posted earnings of 83 cents per share, which came in above analyst expectations of 78 cents, but revenue of $2.196 billion was below the projected $2.25 billion.
Expedia CEO Dara Khosrowshahi joined CNBC's Simon Hobbs on Friday's "Squawk on the Street" to detail the report, breakdown acquisitions and speak about uncertainties surrounding the industry.
"We think the performance is one, the result of the work we have done on the Orbitz Worldwide side. Second is we expected some slowdown with Easter and other timing effects from Q1 to Q2. Third is a macro effect with the uncertainty we're seeing around the world," Khosrowshahi explained.
Speaking more to the Orbitz acquisition, "the Orbitz integration was the largest one that we've done to date, that and I think three integrations in a row as far as Travelocity.com, Wotif.com, and Orbitz have cost some focus from the base," he noted.
Moving forward Khosrowshahi detailed his company's commitment to move forward, execute, and he says when the company executes "we win."
Despite this reassuring message, the fact remains that uncertainty within the marketplace, most notably in Europe headlined by a recent string of terrorist attacks, has weighed heavily on the company.
"Historically after 2-3 weeks there's a rebound. What we have observed, in Europe in particular, with one thing happening after another it looks like that may be having an effect on the travel industry, and business in general" he said.
Expedia will continue to watch very closely as those situations unfold.
The CEO concluded by speaking about the potential to IPO the company Trivago, in which Expedia purchased a 61% stake back in 2012.
"We've created a lot of value with trivago. The business is now five times larger, and the growth rates of 40+ percent since we bought it. We and the founders, thought there would be benefit to pursuing an IPO and it's something we're going to look into."
Shares of Expedia are lower by 2.12% to $116.74 Friday morning.
Separately, TheStreet Ratings rates Expedia as a "Buy" with a ratings score of "B-." This is driven by multiple strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers.
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. TheStreet Ratings feels its strengths outweigh the fact that the company has had sub par growth in net income.
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.
You can view the full analysis from the report here: EXPE