Expedia Jumps on Extra Cost Savings From Orbitz Acquisitionby
Expedia Inc. shares jumped in after-market trading after saying it would realize more cost-savings than originally projected from its $1.3-billion acquisition of Orbitz Worldwide Inc.
The travel website, based in Bellevue, Washington, rose as much as 18 percent to $149.75 in extended trading. The stock closed at $127.06 in New York, leaving it up 49 percent this year and near record highs.
Efficiencies from the Orbitz merger will be more than the original forecast for $75 million, Expedia Chief Financial Officer Mark Okerstrom said on the company’s third-quarter conference call.
The company reported earnings per share, excluding some items, of $2.07, compared with analysts’ average estimate of $2.02, according to data compiled by Bloomberg. Total third-quarter revenue rose 13 percent to $1.94 billion, matching projections.
Expedia is working to integrate Orbitz after getting regulatory approval for the deal in September. The acquisition is part of a wave of consolidation in the online travel industry as Expedia and rivals Priceline Group Inc. and TripAdvisor Inc. seek to gain share, while Google pushes into the market.