Expedia Soars on eLong Stake Sale, Hewlett-Packard Rises on Earnings

NEW YORK (TheStreet) -- Expedia (EXPE) soared after the online travel site announced it sold its stake in eLong (LONG). Hewlett-Packard (HPQ) rose after posting second-quarter results that beat analysts earnings estimates but missed on revenue. Marvell Technology Group (MRVL) plunged after issuing a forecast for the current quarter below Wall Street's expectations.

Expedia surged 6.7% to close at $113.

The online travel site soared after announcing it sold its 62.4% stake in Chinese travel company eLong for $671 million to four buyers. Ctrip.com (CTRP), Keystone Lodging Holdings, Plateno Group and Luxriant Holdings purchased Expedia's stake.

Also as part of the eLong sale to Ctrip.com, Expedia agreed to work with Ctrip to allow that company's customers to "benefit from certain travel product offerings for specified geographic markets."

Although it's selling its eLong stake, Expedia still operates Trivago and Hotels.com, according to a Bloomberg report


Hewlett-Packard rose 2.8% to end the session at $34.76.

The industry icon posted second-quarter net profit of 87 cents a share on revenue of $25.45 billion, compared with analysts expectations of earnings of 85 cents a share on revenue of $25.63 billion. Although HP missed on the revenue forecast, its earnings came in stronger than what Wall Street was expecting.

HP's guidance for the current quarter came in lighter than analysts expectations. The computer maker said it expects to earn $3.53 to $3.73 a share for fiscal 2015, compared with analysts forecast of $3.64 a share.

HP's shares may have been bolstered by investors' relief to find that the estimated cost in losing some of its operating efficiencies as one company would not be as great as some had feared, according to a Barron's report. Once HP splits into two companies, HP Enterprise and HP Inc., approximately $400 million to $450 million will be lost in efficiencies, the report noted.


Marvell Technology tanked 8.6% to finish the day at $13.14.

The chipmaker posted adjusted first-quarter earnings of 13 cents a share on revenue of $724.3 million. That net income was below the company's prior revised first-quarter forecast of 18 cents a share that it provided in February, according to a report in the Wall Street Journal

Additionally, Marvell issued a second-quarter forecast that calls for a net loss of 1 cent to a profit of 11 cents on revenue of $710 million to $740 million. Wall Street, however, was expecting something more along the lines of a net profit of 16 cents a share on revenue of $784 million, the Journal noted.

Meanwhile, Credit Suisse cut its price target for Marvell to $13 a share from $16. The firm also lowered its 2016 earnings estimate for the company to 54 cents a share from 90 cents. The analysts said Marvell's lowered estimates prompted its price cut.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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