Expedia (EXPE) Crushes Q2 Earnings Estimates, Stock Soars

Expedia (EXPE - Free Report) just came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 51.65%. A quarter ago, it was expected that this online travel company would post a loss of $0.64 per share when it actually produced a loss of $0.36, delivering a surprise of 43.75%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Expedia, which belongs to the Zacks Internet - Commerce industry, posted revenues of $2.88 billion for the quarter ended June 2018, missing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $2.59 billion. The company has topped consensus revenue estimates just once over the last four quarters.

Total revenue increased 11% year over year. Expedia said its revenue growth was primarily related to growth at Expedia, Hotels.com, HomeAway, and Expedia Partner Solutions. Gross booking increased 13% to reach $25.9 billion.

As of 4:31 pm EDT, Expedia shares were up 10.3% to $138.69 in after-hours trading.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Expedia shares have added about 6.5% since the beginning of the year versus the S&P 500's gain of 6.5%.

What's Next for Expedia?

While Expedia has performed in line with the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

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