Expedia Beats Up on Analysts Yet Again
Expedia (NAS: EXPE) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Expedia beat expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Expedia reported revenue of $1.04 billion. The 19 analysts polled by S&P Capital IQ anticipated a top line of $988.1 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $1.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.89. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.71 per share. GAAP EPS of $0.76 for Q2 were 24% lower than the prior-year quarter's $1.00 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 77.9%, 270 basis points worse than the prior-year quarter. Operating margin was 15.2%, 720 basis points worse than the prior-year quarter. Net margin was 10.1%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $1.25.
Next year's average estimate for revenue is $3.81 billion. The average EPS estimate is $2.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 337 members out of 433 rating the stock outperform, and 96 members rating it underperform. Among 139 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Expedia a green thumbs-up, and 24 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 $42.23.
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