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 grew significantly. Non-GAAP earnings per share contracted. GAAP loss per share grew.
Margins shrank across the board.
Expedia reported revenue of $1.01 billion. The 23 analysts polled by S&P Capital IQ foresaw sales of $967.6 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $816.5 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 $0.25. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. Non-GAAP EPS of $0.25 for Q1 were 3.8% lower than the prior-year quarter's $0.26 per share. (The prior-year quarter included -$0.17 per share in earnings from discontinued operations.) GAAP EPS were -$0.77 for Q1 versus -$0.02 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 75.2%, 30 basis points worse than the prior-year quarter. Operating margin was -4.4%, much worse than the prior-year quarter. Net margin was -10.3%, 990 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $4.79 billion. The average EPS estimate is $3.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 354 members out of 454 rating the stock outperform, and 100 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Expedia a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Expedia is outperform, with an average price target of $72.71.
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