We’re officially halfway through the month of January, and I’m sure many people are digging into their goals for the new year. One of the most popular resolutions many people make is to travel more, and Expedia Inc (EXPE) is popular site for travelers to book trips.
In an effort to build on customer satisfaction, Expedia is collaborating with hotels to create a real-time survey application to offset negative reviews. So, could now be a good time to buy EXPE?
Expedia – Company Profile
Expedia is the world’s number-one travel website, helping millions of people each month plan their travels.
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 Corporation (MSFT) and spun out of shortly after to become publicly traded.
EXPE currently employs more than 14,570 full-time employees worldwide. Last year, Expedia brought in total revenue of $4.7 billion.
Expedia – Earnings Rundown
Expedia reported an impressive Q3 earnings of $1.93 per share, which beat analysts’ earnings expectations of $1.74 per share by 9.8%. EXPE stock’s Q3 revenue increased 18.1% year-on-year to $1.71 billion and topped analysts’ estimates of $1.68 billion.
Looking ahead to the fourth quarter, Expedia’s earnings outlook seems solid despite recent tumultuous market conditions. Analysts estimate earnings of $1.01 per share on revenue of $1.27 billion.
For fiscal year 2014, analysts estimate an overall earnings-per-share of $4.68 on $5.77 billion in revenue. EXPE is tentatively scheduled to report fourth-quarter earnings on Feb. 5.
Expedia – Current Ratings
EXPE has remained in “buy” territory over the past several months. Right now, EXPE stock enjoys solid buying pressure. So, Expedia receives a B for its Quantitative Grade.
EXPE stock’s fundamental metrics are strong as well, with exceptional A grades for operating margin growth, earnings growth and return on equity. Expedia also receives solid B grades for sales growth, earnings surprises, analyst earnings revisions and cash flow.
One area where EXPE stock struggles is with is earnings momentum, which slipped and earns an F. Overall, Expedia’s fundamental metrics are pretty impressive. So, EXPE stock receives a B for its Fundamental Grade.
As of this posting, Jan. 16, I consider EXPE stock a B-rated “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.