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Expedia Shares Tumble as Q2 Profit Misses Estimates (EXPE)

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Shares of Expedia Inc. (NASDAQ: EXPE), an online travel company, have tumbled in trading today after the company’s quarterly profit missed consensus forecast. Expedia’s bottom-line was hurt by higher competition and weak performance in the company’s discount website Hotwire.com.

With several of Expedia’s rivals advertising their brands aggressively, Expedia has found it difficult to maintain its market share. As a result, the company has been forced to boost spending on selling and marketing to win back lost market share. However, this is hurting the company’s bottom-line.

In the second quarter of 2013, the Bellevue, Washington-based company reported net profit of $71.5 million, or $0.51 per share, compared to $105.2 million, or $0.76 per share reported for the same period in the previous year. Excluding one-time items, the company reported earnings of $0.64 per share, missing consensus forecast of $0.79 per share.

Expedia’s revenue for the second quarter rose 16% to $1.21 billion. However, revenue fell short of consensus forecast of $1.26 billion.

EXPE shares fell to an intra-day low of $47.55 following the release of weaker than expected second-quarter earnings. The stock closed 27.38% lower at $47.20 on above average volume of 27.37 million. Year-to-date, EXPE shares have now fallen over 23%.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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