NEW YORK (TheStreet) -- Expedia (EXPE) - Get Report shares are higher 3.34% to $130 in after-hours trading following the online travel company's third quarter fiscal 2015 earnings results. Profit topped estimates while revenue were below expectations.
For the latest quarter, the company reported a profit of $2.07 on revenue of $1.94 billion.
Analysts had expected earnings of $2.00 a share on revenue of $1.96 billion.
In the same period the year before, the company earned $1.96 a share on revenue of $1.66 billion.
Year-over-year hotel sales grew 17% due to a rise in room nights stayed by brand Expedia and Hotels.com. However, revenue per room night fell 15% year-over-year due to foreign exchange, the company said.
Back in mid-September, the company acquired Orbitz Worldwide (OWW) for about $1.6 billion.
Looking ahead, the company expects to get more money from the Orbitz merger than the $75 million a year it had previously expected , Reuters reports.
Separately, TheStreet Ratings team rates EXPEDIA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate EXPEDIA INC (EXPE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: EXPE