Revenue was up 97% to $2.96 billion on the back of a 117% increase in gross bookings. A net loss of $221 million in the prior-year period swung to net income of $362 million, or $2.26 per share, this time around. Analysts were expecting revenue of $2.73 billion and earnings of $1.65 per share, so results easily topped estimates.
Lodging is by far Expedia's biggest business, and revenue in that segment was up 87% versus a year ago while air revenue was up 128%, and revenue from its advertising and media segment was up 116%.
Across the board, results have shown that travel spending is up everywhere this quarter, and companies in the industry are reporting strong pricing and volume. The story was no different for Expedia.
While this travel frenzy may not last forever, money is freely flowing in this economy, and people are spending what they have, so I don't see any signs that a slowdown is near. If its revenue growth continues, this could be a great value stock to hold for the long term, given its strong results and its forward price-to-earnings multiple of just 28 -- which doesn't factor in the adjustments that will need to be made after this quarter's earnings beat.