Expedia earnings miss Street expectations, stock down 25%
Expedia, an online travel agency, reported earnings and revenue Thursday that missed market expectations.
The company posted second-quarter adjusted earnings excluding items of 64 cents per share, down from 89 cents a share in the year-earlier period.
Revenue increased to $1.21 billion from $1.04 billion a year earlier.
Analysts had expected Expedia to report earnings excluding items of 79 cents a share on $1.26 billion in revenue, according to a consensus estimate from Thomson Reuters.
Expedia reported that sales and marketing costs rose 33%, driven by a $128 million increase in direct costs.
Expedia, whose brands include Hotels.com and discount website Hotwire, has been investing in technology and international expansion to better compete against rivals such as Priceline.com and Orbitz.
Expedia shares tumbled more than 27 percent Friday to close at $47.20 on the Nasdaq Stock Market.
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