Yahoo Finance Expedia’s Stock Rallies on Its Strong 2016 Guidance
Analyzing Expedia's 4Q15: Is a Brighter 2016 Ahead?
4Q15 snapshot
Expedia (EXPE) released its 4Q15 results on February 10, 2016. The company reported mixed results and missed analysts’ consensus estimates. However, its gross bookings saw tremendous growth.
EXPE’s revenues rose by 29% to $1,699 million. This was, however, slightly below analysts’ consensus estimate of $1,710 million. Its adjusted profit of $107 million, or $0.77 per share, was lower than its 4Q14 profits of $113 million, or $0.86 per share. Its adjusted profit was also lower than analysts’ consensus estimate of $1.00 per share.
Stock movement
Expedia’s stock was up 2% during market hours on February 10, 2016. Moreover, EXPE’s strong outlook for 2016 helped it to consolidate its gains by rallying 9.6% on February 11.
This optimism seems to have rubbed off on EXPE’s peers. On February 10, 2016, Priceline (PCLN) was up by 4%, TripAdvisor (TRIP) was up by 0.5%, and Ctrip.com (CTRP) was up by 1%.
The broader market tracked by the S&P 500 ETF (SPY) was flat in the same period.
Series overview
In this series, we will look at EXPE’s 4Q15 and 2015 performances. We will analyze the company’s key metrics trends and look at its management’s guidance for 2016. We will also check out analysts’ estimates for EXPE, and we’ll wrap up the series with a discussion on its valuation multiple.
Browse this series on Market Realist:
