Thursday, April 28, 2011

Expedia Inc. (NASDAQ: EXPE): Q1 Earnings Preview 2011

Expedia Inc. (NASDAQ: EXPE) is scheduled to release its first-quarter earnings after the closing bell on Thursday, April 28, 2011. Analysts, on average, expect the company to report earnings of 26 cents per share on revenue of $795.40 million. In the year ago period, the company reported earnings of 26 cents per share on revenue of $717.92 million.

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. The Company makes available on a stand-alone and package basis, travel products and services provided by numerous airlines, lodging properties, car rental companies, destination service providers, cruise lines and other travel product and service companies.

In the preceding fourth-quarter, the Bellevue, Washington-based company's net income was  $71.3 million, or 25 cents per share, compared to $102.2 million, or 35 cents per share, in the year-earlier quarter. On an adjusted basis, the company earned $191.3 million, or 32 cents a share in the fourth quarter. Total revenues for the quarter rose 16 percent to $808.4 million from $697.5 million a year ago. Analysts, on average, expected the company to report earnings of 36 cents per share on revenue of $802.32 million. 

The company, which operates its namesake website, as well as and, aims to improve its competitive position by investing in its Expedia platform and expanding its presence in the Asia-Pacific and Latin American regions. It also is considering new platforms such as social media and mobile, as well as new products such as loyalty programs.

Early in April, Expedia's Board of Directors approved a plan to separate the company into two publicly traded entities - Expedia, Inc. and TripAdvisor. Expedia, Inc. will continue to include the domestic and international operations of the company's travel transaction brands including,, eLong, Hotwire and others. On other hand, TripAdvisor will include the domestic and international operations associated with the TripAdvisor Media Group, which includes its flagship brand as well as 18 other travel media and advertising brands. The proposed spin-off is expected to be completed in the third quarter of 2011.

Recently, Expedia enetred into a new ticket distribution agreement with American Airlines, a unit of AMR Corp. (NYSE: AMR) following which, it restored latter's fares and schedules on its websites. Expedia website stopped displaying and selling American Airlines' tickets on its website from the beginning of this year after the escalation of a commercial dispute between the airline and travel websites.

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