After-the-Bell Earnings Wrap: FB, EXPE, WTW

NEW YORK (TheStreet) -- Earnings for Facebook (FB), Expedia (EXPE) and Weight Watchers (WTW) were a mixed bag, sending shares in opposite directions.

Facebook

Social networking king Facebook slipped 0.2% to $48.91 in after-market trading, reversing an earlier gain of 12%.

For its third quarter, Facebook reported earnings of 25 cents a share compared to an average of 19 cents a share according to a survey of analysts by Thomson Reuters. Revenue of $2.02 billion, 49% of which was generated by mobile, was higher than an anticipated $1.91 billion.

TheStreet Ratings team rates Facebook Inc as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate Facebook Inc (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."


Expedia

Expedia shares were surging 18% in after-hours trading after reporting better-than-expected third-quarter figures. The online travel agent reported earnings of $1.43 a share on revenue of $1.4 billion. Analysts surveyed by Yahoo! Finance were expecting $1.35 a share on $1.37 billion. Shares closed in regular trading at $49.96.

TheStreet Ratings team rates EXPEDIA INC as a Hold with a ratings score of C+. The team has this to say about its recommendation:

"We rate EXPEDIA INC (EXPE) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."


Weight Watchers

Weight Watchers plunged 14% to $34.31 in after-hours trading following an unexpectedly negative 2014 forecast. The weight-management company said it expects a "challenging" year ahead as revenue continues to be buffeted by waning new memberships.

"While we are working aggressively on both near-term commercial activities and longer-term strategic initiatives, 2014 will be a very challenging year.  To maintain financial flexibility and fund the company's transformation, the board has elected to suspend the dividend," said CEO Jim Chambers in a statement.

The New York-based company reported third-quarter earnings of $1.07 a share on revenue 8.5% lower than a year earlier of $393.9 million. Analysts surveyed by Yahoo! Finance had expected 84 cents a share on $386.5 million. Management said cost-cutting measures allowed the business to surpass third-quarter expectations but that the trend will not extend to the fourth quarter.

"While progress on cost cutting has allowed us to exceed our Q3 expectations, we expect Q4 revenues to be down low double digits," said Chambers.

TheStreet Ratings team rates WEIGHT WATCHERS INTL INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate WEIGHT WATCHERS INTL INC (WTW) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow."

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