GO
Loading...

Expedia earnings: 16 cents a share, ex-items, vs. expected 15 cents a share

Expedia shares rallied Thursday after the travel website posted earnings and revenue that exceeded Wall Street expectations.

The company posted earnings of 16 cents a share, excluding one-time items, on sales of $1.2 billion, topping estimates for 15 cents a share on $1.18 billion in revenue, according to a consensus estimate from Thomson Reuters.

Shares rose in extended-hours trading. The stock spiked more than 4 percent during the regular session. (Click here to get the latest quotes for Expedia.)

Hotel revenue rose 12 percent as the number of room nights stayed increased 24 percent. Revenue from air tickets rose 28 percent. Hotels accounted for 66 percent of overall quarterly revenue compared with 11 percent for air tickets.

Andrew Harrer | Bloomberg | Getty Images

The last time Expedia reported quarterly results, in February, its profits blew past expectations and its stock skyrocketed.

Since then, it lost out to competitor Travelocity in a customer satisfaction survey. The rival firms struck a deal last year, and now Expedia provides marketing and technical services for Travelocity.

"When you come on Travelocity, now it's our back-end technology that's powering the Travelocity site," said Dara Khosrowshahi, Expedia president and CEO, on a "Squawk on the Street" interview in February. "We think it's a greatly improved experience. And the early results have been very good."

Travelocity's parent company, Sabre, held its own IPO in April.

Khosrowshahi also said in the same interview the particularly harsh winter that ravaged much of the United States affected Expedia's "customer experience."

More recently, the company extended a credit card partnership it has with Citi, striking a multi-year agreement.

In addition to its online travel booking services, Expedia is trying to engage its customers socially. It recently rolled out Mobile Lounge through the company's mobile app. The program's first offering is a photo editing app, but the company says others will follow that aim to "make travels easier and more enjoyable."

Contact Earnings Central

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More