The Gory Details on Expedia's Double Fumble
Expedia (NAS: EXPE) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Expedia missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, and net margins expanded.
Expedia booked revenue of $787.1 million. The 15 analysts polled by S&P Capital IQ looked for revenue of $821.8 million. GAAP sales were 2.6% lower than the prior-year quarter's $808.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.58. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share on the same basis. GAAP EPS of $0.52 for Q4 were 6.1% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.7%, 150 basis points worse than the prior-year quarter. Operating margin was 11.9%, 720 basis points worse than the prior-year quarter. Net margin was 8.9%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $794.9 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $3.77 billion. The average EPS estimate is $2.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 346 members out of 432 rating the stock outperform, and 86 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Expedia a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Expedia is hold, with an average price target of $52.33.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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