Expedia Inc. (EXPE – Free Report) reported second-quarter 2017 adjusted earnings of 66 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents. Earnings were up 65% from the year-ago quarter.
Revenues of $2.59 billion were up 18.2% sequentially and 17.8% year over year and came ahead of the Zacks Consensus Estimate of $2.54 billion. Gross bookings decreased 3.4% sequentially but increased 12% year over year to $22.8 billion.
Shares increased 2.4% in afterhours trading in response to the better-than-expected results. Notably, year to date, shares of Expedia have outperformed the S&P 500 index. The stock returned 40.4% compared with the index’s gain of around 10.8%.
At the call, management sounded upbeat about the company’s continuous improvement and execution.
In the quarter, Expedia acquired the majority stake in SilverRail, a rail ticket retailing and distribution platform developer. The buyout, which is likely to be supported by Expedia’s successful partnership with SilverRail, will boost core OTA revenues, going forward.
We stay positive about the company’s solid travel booking platform, a stronger travel market, contribution from a series of acquisitions and management execution.
The numbers in detail:
Revenues by Segment
Core OTA segment revenues were up 14.7% sequentially and 13.8% year over year to $2 billion, driven by growth in room nights in every major region.
Trivago revenues increased 21.1% sequentially and a massive 63.2% from the year-ago quarter to $328 million driven mainly by strong volumes and solid monetization.
Egencia was up 4.8% on a sequential basis but down 21.5% on a year-over-year basis to $135 million. Management stated that “Egencia is now the fourth largest travel management company in the world based on revenue.”
HomeAway was up 9.8% sequentially and a massive 79.2% year over year to $224 million, driven mainly by strong growth in stayed room night.
