Online travel agent Expedia (NASDAQ:EXPE) looks set to enjoy a spell in the sun after investors warmed to its third quarter results.
The travel web site operator reported its earnings after Wall Street closed yesterday, but the shares climbed briskly in after-hours trading after the company unveiled a rise in post-tax profit to US$276.3mln from US$256.0mln the year before.
Earnings per share (EPS) of US$2.07 were up from US$1.93 a year earlier and were give cents higher than the consensus forecast from analysts that cover the stock.
Revenue rose 13.5% to US$1.94bn from US$1.71bn last year, but was a shade below market expectations.
U.S. revenue was up 18% year-on-year (yoy) to US$1.05bn, while non-U.S. revenues, up 15% at US$890mln, were hit hard by the strength of dollar. Stripping out currency effects, international revenues were up 33% yoy.
The shares were up 6.6% on last night's close in pre-market trading at US$135.50, dragging online competitor Priceline (NASDAQ:PCLN) – up 0.9% - along with them some of the way.