Seeking Alpha

Expedia +12.3% AH on Q4 beat, strong bookings; Priceline +1.5%

  • Expedia (EXPE) has soared to new highs after handily beating Q4 EPS estimates and reporting a sizable acceleration in gross bookings growth (+21% Y/Y vs. +15% in Q3). Archrival Priceline (PCLN) is following Expedia higher, as is Orbitz (OWW), whose shares are up 2.4% AH.
  • The bookings growth was fueled by a 25% Y/Y increase in hotel room nights (up from 20% in Q3), and a 13% increase in air tickets sold. Revenue/hotel room night fell 9%, and revenue per air ticket rose 3%.
  • Domestic bookings +19% Y/Y to $4.98B, international bookings +24% to $4.12B. Agency bookings +26% to $5.25B, merchant bookings +15% to $3.86B.
  • Much like Priceline, Expedia continues spending heavily on search ads: Sales/marketing spend +23% Y/Y to $484M (42% of revenue). Technology/content spend +15% to $155M.
  • If history is any guide, TripAdvisor (TRIP) might also follow Expedia higher. TripAdvisor reports on Feb. 11, and Priceline on Feb. 20.
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Comments (2)
  • Mark Krieger
    , contributor
    Comments (4571) | Send Message
     
    not sure why $PCLN is soaring. EXPE's strong earnings performance could be a clue that it is actually taking market share from PCLN.
    6 Feb 2014, 05:49 PM Reply Like
  • ThetaDecay
    , contributor
    Comments (107) | Send Message
     
    Alternatively, it could be a sign of an industry-wide increase in online hotel and airline bookings.
    It appears that the market is crediting at least some of EXPE's earnings beat to macro factors, factors that are bullish for the whole industry.
    6 Feb 2014, 06:53 PM Reply Like
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