It’s November, and you know what means: It’s officially holiday season. That means that people gearing up to visit loved ones, so it is the happiest time of year for travel companies alike Expedia (EXPE).
Expedia just released its third-quarter earnings report. Find out now if EXPE makes the grade.
Expedia – Company Profile
Expedia is the world’s number-one travel website, helping millions of people each month plan their travel. Expedia’s simple, easy-to-use booking format allows novice travelers and globetrotters alike to choose from a wide selection of vacation packages, flights, hotels, rental cars, resorts, cruises, attractions and more.
Expedia is U.S.-based but has localized sites for more than 30 countries. Expedia originally began in 1996 as a small division of Microsoft (MSFT), and spun out of the company shortly after to become publicly traded. Expedia currently employs more than 14,570 full-time employees worldwide. Last year, Expedia brought in total revenue of $4.7 billion.
Expedia – Earnings Rundown
In the third quarter, Expedia reported an impressive earnings-per-sharing of $1.93, which beat analysts’ expectations of $1.74 EPS by 9.8%. Q3 revenue increased 18.1% year over year to $1.71 billion and topped analysts’ estimates of $1.68 billion.
Expedia’s revenue growth was propelled by strong advertising and media revenue. Gross bookings jumped 29% to $13.47 billion, driven by strong hotel room nights and air ticket growth. Domestic and international room nights also increased 24% year-over-year. Expedia repurchased 1.5 million shares of common stock in the third quarter.
Expedia – Current Ratings
EXPE has remained in buy territory over the past several months. Right now, EXPE enjoys strong buying pressure. So, Expedia receives an “A” for its Quantitative Grade. EXPE’s fundamental metrics are strong as well, with exceptional “A” grades for operating margin growth, earnings surprises, and return on equity.
Expedia also receives solid “B” grades for sales growth, earnings growth, analyst earnings revisions, and cash flow. EXPE’s earnings momentum could use some work, receiving a “C” grade. Overall, EXPE’s fundamental metrics are pretty impressive. So, Expedia receives a “B” for its Fundamental Grade.
As of this posting, Nov. 3, I consider Expedia an “A-rated strong buy.”
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
