Expedia Jumps After Third-Quarter Profit Tops EstimatesAri Levy
Expedia Inc. surged the most in three months after the second-most valuable online travel agency reported third-quarter earnings that topped analysts’ estimates.
Excluding some items, profit rose 4.2 percent to $188 million, or $1.32 a share, from $180.5 million, or $1.28, a year earlier, the Bellevue, Washington-based company said yesterday in a statement. Analysts on average expected profit to decline to $1.26 a share, according to data compiled by Bloomberg.
Expedia, which gets more than 40 percent of its business outside the U.S., expanded even as the European sovereign-debt crisis entered its third year. International revenue rose 22 percent in the period, surpassing domestic growth of 14 percent. Hotel reservations accounted for 77 percent of worldwide sales, while 7 percent came from airlines.
Expedia, which has more than doubled this year, rose 15 percent to $59.06 at the close in New York, the biggest gain since July 27.
Priceline.com Inc., Expedia’s larger rival, has yet to report quarterly results. The Norwalk, Connecticut-based company generated 60 percent of sales last year outside of the U.S.