Expedia Stock Surges After Beating Earnings: Should You Buy?
On the first trading day following Expedia's (NASDAQ: EXPE) after-hours earnings release last Thursday its stock surged. The Bellevue, Washington-based online travel agency saw stock prices rise by more than 11% as it beat consensus estimates on its top line.
While this latest report returns some sense of optimism to the company, it remains unclear whether that sentiment can return Expedia to an upward path. This stock has struggled over the last few years. Despite forecasts for double-digit earnings increases, both internal and competitive factors could prevent any sustained move higher for Expedia stock.
The company brought in $2.75 billion in revenue for the fourth quarter. Though that represents year-over-year growth of 7%, the company missed consensus revenue estimates by $40 million. Expedia earned $1.24 per share on an adjusted basis, $0.06 per share ahead of estimates. The company also reported non-GAAP (adjusted) earnings per share of $1.24 during the same quarter last year.
Source Fool.com
