Online travel agency Expedia said third-quarter profit rose 41 percent, lifted by strong hotel and airline bookings. The better-than-expected results pushed...
Online travel agency Expedia said third-quarter profit rose 41 percent, lifted by strong hotel and airline bookings. The better-than-expected results pushed the Bellevue company’s stock up 13.1 percent in after-hours trading Thursday.
Profit increased to $82 million, or 23 cents a share, from $58.1 million, or 17 cents, a year earlier. Revenue climbed 16 percent to $584.7 million, the company said. The report was Expedia’s first since it was split from Barry Diller’s IAC/InterActiveCorp in August and became a publicly traded company.
Expedia said bookings across all of its Web sites rose 21 percent to $3.94 billion, lifted by international gains. The company is bolstering its offerings overseas, where use of online travel is growing faster than in the U.S.
In September, it added 400 hotels to its Web sites in Europe, the Middle East and Africa to fend off competitors, including Sabre Holdings’ Travelocity and Cendant’s Orbitz.
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Expedia said it earned 35 cents a share, excluding amortization and other costs. On that basis, Expedia was expected to earn 30 cents a share, said Piper Jaffray analyst Aaron Kessler.
Expedia’s stock had a good day even before the results were announced, climbing $1.31, or 6.8 percent, to $20.71 in the regular stock session. After the earnings report, the stock shot up $2.72 to $23.43 in the extended trading session
Diller announced the spinoff of Expedia in December, saying it would make it easier for investors to value both Expedia and IAC, owner of companies including the HSN home shopping network, LendingTree and Ticketmaster.
Shares of both companies have declined since the spinoff. Diller in October said investors need to be patient.
|Dollar figures in thousands, except per share.|