Why HomeAway (AWAY) Is Soaring on Thursday

NEW YORK (TheStreet) -- HomeAway (AWAY) is soaring after reporting earnings after the bell Wednesday. Fourth-quarter revenue came in above consensus and current-quarter sales guidance exceeded expectations.

By midmorning, shares had added 12.3% to $48.25.

The vacation rental site recorded total sales of $90.3 million for the three months to December. Revenue was 26.2% higher than a year earlier and beat expectations by $2.8 million, according to analysts surveyed by Thomson Reuters.

Quarterly net income of 8 cents a share fell short of consensus by 6 cents a share.

Management gave first-quarter sales guidance between $102.1 million and $103.3 million, higher than analyst expectations of $99.5 million. Fiscal 2015 guidance is for sales of $429 million to $436 million, in line with consensus of $435.1 million.

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

"We rate HOMEAWAY INC (AWAY) 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 solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."

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