Expedia (EXPE) Looks to Close Week Sky-High

NEW YORK (TheStreet) -- Expedia (EXPE) looks likely to close the session at a record high on Friday after posting better-than-expected earnings a day earlier.

By midafternoon, shares had soared 12.8% to $73.48.

The Washington-based travel Web site recorded full-year net income of $3.22 a share on $4.77 billion in revenue. Analysts polled by Thomson Reuters had forecast earnings of $3.21 a share on sales of $4.75 billion.

In the three months to December, revenue jumped 18% from the year earlier to $1.15 billion, compared to consensus of $1.14 billion. Increased sales were due to a 25% boost to hotel room nights booked and on higher income from advertising.

Quarterly net income of 92 cents a share was higher than expectations of 86 cents a share.

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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