Why Expedia (EXPE) Shares Jumped in Aftermarket Trading

NEW YORK (TheStreet) -- Expedia (EXPE) shares were jumping in aftermarket trading Thursday after the online travel site reported better-than-expected quarterly results.

In extended trading, shares had 13% to $73.60, after climbing 1.9% over Thursday's session.

Washington-based Expedia saw quarterly revenue jump 18% year-over-year, driven by a 25% increase in hotel room nights booked and advertising sales. The company recorded net income of 92 cents a share on revenue of $1.15 billion. Analysts surveyed by Thomson Reuters had expected earnings of 86 cents a share on $1.13 billion in sales.

Expedia-owned hotel price comparison site trivago saw full-year revenue grow more than 85%, adding around 4 percentage points to overall revenue growth for 2013.

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.

After the bell, competitors Orbitz (OWW) and Priceline (PCLN) were pulled higher, adding 2.4% and 1.3%, respectively. Orbitz reports results on Feb. 13 and Priceline is due for Feb. 20.

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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."

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