The 10-second takeaway
For the quarter ended March 31 (Q1), Expedia beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Expedia reported revenue of $816.5 million. The 19 analysts polled by S&P Capital IQ hoped for revenue of $784.0 million on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $822.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.26. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. GAAP EPS were -$0.02 for Q1 versus $0.38 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.5%, 290 basis points worse than the prior-year quarter. Operating margin was 5.9%, 740 basis points worse than the prior-year quarter. Net margin was -0.4%, 670 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $975.4 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $3.77 billion. The average EPS estimate is $2.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 341 members rating the stock outperform and 86 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give Expedia a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Expedia is hold, with an average price target of $35.35.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.