For the first quarter Expedia reported earnings of 16 cents a share, beating analysts' expectations of 15 cents a share by 1 cent. Revenue grew 18.85 year-over-year to $1.2 billion for the quarter. Analysts surveyed by Thomson Reuters expected $1.8 billion in revenue.
Hotel revenue rose 12% from the year-ago quarter, while room nights stayed increased 24%. Revenue per room night fell 10%, however, "primarily due to efforts to expand the size and availability of the global hotel supply portfolio, including contracts signed as part of the Expedia Traveler Preference (ETP) program, promotional activities such as growing loyalty programs and couponing, in addition to continued hotel mix shift to Asia-Pacific."
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TheStreet Ratings team rates EXPEDIA INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their 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 disappointing return on equity and generally higher debt management risk."