Wed, Feb. 10, 4:19 PM
- Expedia (NASDAQ:EXPE): Q4 EPS of $0.77 misses by $0.23.
- Revenue of $1.7B (+25.0% Y/Y) misses by $10M.
- Shares +0.39%.
Tue, Feb. 9, 5:35 PM
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Fri, Feb. 5, 12:43 PM
- On a day the Nasdaq is down 2.4%, Internet stocks are seeing outsized losses after LinkedIn (down 41.3%) issued weak Q1/2016 guidance with its Q4 beat.
- The professional social networking leader forecast its corporate hiring solutions business would see slower growth in 2016 (international macro issues were blamed). It also noted display ad sales fell by a high-30s % Y/Y in Q4 amid ongoing secular industry pressures, and reported just 7% Y/Y unique visitor member growth.
- Facebook (FB -5.5%), which soared last week after blowing away Q4 estimates on the back of 57% Y/Y ad revenue growth, is among the casualties. As is Amazon (AMZN -4.9%), which sold off last week after missing Q4 estimates and issuing in-line Q1 sales guidance, is also down sharply. As is Twitter (TWTR -5.3%), which reports in five days and continues trading near post-IPO lows amid growth/engagement concerns.
- Other decliners include Yelp (YELP -7.9%), TripAdvisor (TRIP -6.3%), Expedia (EXPE -6%), LendingClub (LC -8.3%), Wix.com (WIX -6.8%), Wayfair (W -7.6%), Groupon (GRPN -4.9%), Shopify (SHOP -6.3%), and Zillow (Z -6%), as well as ad tech firms Criteo (CRTO -8.9%) and TubeMogul (TUBE -7.6%). The aforementioned companies are generally expected to post Q4 results in the coming weeks.
- Earlier: Enterprise software and security stocks hammered after Tableau/LinkedIn's earnings
Dec. 23, 2015, 2:05 PM
- Priceline's (PCLN -0.2%) European Booking.com unit (accounts for a giant % of the company's travel bookings) has been ordered by Germany's competition authority to guarantee its hotel partners are free to charge lower rates on their own sites than they charge to Booking.com and other agencies, which of course collect a commission on sales.
- As a result, Booking.com is rewriting its contracts with German hotel partners. Both the Priceline unit and Expedia (EXPE -1.2%) previously agreed in many European markets to allow for lower rates via rival agencies, but not on the hotel owners' sites. In addition to Booking.com, German regulators are probing the practices of Expedia and other online travel sites.
- Booking.com plans to appeal the German ruling, which goes into effect on Jan. 31 and could spark similar moves in other EU countries. Germany is the EU's largest market in terms of both population (80.6M) and GDP ($3.9T).
Dec. 14, 2015, 7:40 AM
- Added to the Nasdaq 100 (NASDAQ:QQQ), effective Dec. 21 will be: Ctrip (NASDAQ:CTRP), Endo International (NASDAQ:ENDP), Expedia (NASDAQ:EXPE), Maxim Integrated (NASDAQ:MXIM), Norwegian Cruise Lines (NASDAQ:NCLH), T-Mobile (NASDAQ:TMUS), and Ulta Salon (NASDAQ:ULTA).
- To be removed: C.H. Robinson (NASDAQ:CHRW), Expeditors International (NASDAQ:EXPD), Keurig Green Mountain (NASDAQ:GMCR), Garmin (NASDAQ:GRMN), Staples (NASDAQ:SPLS), VimpelCom (NASDAQ:VIP), and Wynn Resorts (NASDAQ:WYNN). Also to be removed: LiLAC Class A Shares (NASDAQ:LILA), and LiLAC Class C Shares (NASDAQ:LILAK).
Dec. 1, 2015, 11:04 AM
- Expedia (EXPE +0.3%) plans a private senior note offering of yet-undisclosed size. Expected uses include financing the cash portion of Expedia's acquisition of vacation rental marketplace HomeAway, refinancing existing HomeAway debt, and general corporate purposes.
- As previously announced, Expedia is paying $10.15/share in cash (total payout of nearly $1B) and issuing 0.2065 shares (payout of $2.5B based on Expedia's current trading price) for each HomeAway share. The company had $1.5B in cash and $2.5B in long-term debt at the end of Q3.
Nov. 24, 2015, 11:15 AM
- Priceline (PCLN -3.4%), Expedia (EXPE -3.5%), and TripAdvisor (TRIP -2.9%) are under pressure after the State Department (citing fears more attacks are planned) issued a global travel alert for Americans in the wake of the Paris attacks. The Nasdaq is down 0.8%.
- The alert doesn't call on Americans to avoid traveling, but does urge them to "exercise vigilance when in public places or using transportation."
- Of the three companies, Priceline has the most international exposure: 88% of its Q3 bookings came from non-U.S. markets, with a large chunk coming from Europe via the company's Booking.com unit.
- Expedia received 46% of its Q3 revenue from outside the U.S.. TripAdvisor got 47% of its Q3 revenue from outside North America.
Nov. 16, 2015, 9:57 AM
- A group of travel, lodging, and airline stocks are weaker than broad market averages on heightened concerns over global travel and tourism after the Paris attacks.
- Notable decliners include Delta Air Lines (DAL -1.8%), American Airlines Group (AAL -1.6%), Priceline (PCLN -4.5%), Expedia (EXPE -2.1%), China Lodging Group (HTHT -0.6%), Wyndham Worldwide (WYN -2.5%), Hilton Worldwide (HLT -2.6%), and Intercontinental Hotels Group (IHG -1.6%).
Nov. 9, 2015, 2:12 PM
- Down on Friday in response to TripAdvisor's Q3 miss and full-year guidance cut, Expedia (EXPE -2.5%) is underperforming today after archrival Priceline (PCLN -9.5%) provided below-consensus Q4 EPS guidance to go with a Q3 beat.
- Priceline's gross bookings rose 7% Y/Y in Q3 (22% exc. forex) to $14.8B, and are expected to rise 1%-8% in Q4 (13%-20% exc. forex). Expedia, which is less dependent on international sales (and thus hurt less by a strong dollar) than Priceline, saw bookings (exc. eLong) rise 21% Y/Y in Q3 to $15.4B. Excluding forex, growth was 26%.
- Separately, Piper's Mike Olson (Neutral rating, $130 target) thinks Expedia's forecast for the HomeAway (AWAY -1.7%) deal to boost EBITDA by $350M in 2018 is conservative, given HomeAway's recent introduction of a 6% traveler booking fee. He thinks the booking fee could add over $1B/year in revenue by 2018, and expects synergies between HomeAway and Expedia's platforms to significantly boost booking volume for vacation property owners.
Nov. 6, 2015, 1:32 PM
- Priceline (PCLN -1.6%) and Expedia (EXPE -2.9%) have sold off after TripAdvisor (TRIP -6.8%) posted a Q3 miss and cut its full-year revenue growth forecast. On its earnings call (transcript), TripAdvisor stated the rollout of Instant Booking (allows bookings to be made on TripAdvisor's site/apps, Priceline recently signed up) is affecting near-term revenue by pushing out revenue recognition relative to referral (click-based) payments.
- Also: Priceline says it's uninterested in making a rival bid for top vacation rental marketplace HomeAway (AWAY -6.2%), which recently agreed to a $3.9B sale to Expedia. HomeAway has fallen to $37.73, a price close to what Expedia's cash/stock offer is currently worth.
- TripAdvisor's management faced earnings call questions about the impact of Instant Booking on monetization and conversion rates. It insisted IB, and the the Priceline deal in particular, will be a major positive. "The reason Priceline enables us to accelerate our [Instant Booking] rollout globally is because of the rich content that they have on 400,000 plus properties all around the globe, and by that I mean they are able to successfully take bookings on 400,000 plus properties in multiple, multiple, different language, processing payments for multiple different credit card by multiple different banks."
- At the same time, management is taking a cautious approach to modeling international IB sales. "[W]hile we have the decent amount of experience now in U.S. and U.K., we don't quite know how [Instant Booking] is going to flowing in, in France, in Japan, all throughout age, all throughout all the other markets that we look to roll it out in."
- Oppenheimer's Jed Kelly has downgraded TripAdvisor to Perform, citing slightly weaker hotel trends and the "monetization drag" Instant Booking could have in the near-term. Nonetheless, he thinks the Priceline deal "should eventually enhance earnings long term, especially as revenue leakage and improving mobile monetization eventually equates to higher revenue per hotel shopper."
- Priceline and TripAdvisor rallied last week in response to Expedia's Q3 results and full-year guidance hike. Priceline reports on Monday morning.
Nov. 4, 2015, 5:33 PM
- Expedia (NASDAQ:EXPE) is now up strongly after hours in response to news it's buying HomeAway (NASDAQ:AWAY) for $3.9B. HomeAway has risen to $39.26 - at Expedia's current trading levels, the company's cash/stock payout for HomeAway is worth $39.06/share. (PR)
- Expedia CEO Dara Khosrowshahi: "We have long had our eyes on the fast growing ~$100 billion alternative accommodations space and have been building on our partnership with HomeAway, a global leader in vacation rentals, for two years ... we look forward to partnering with them to accelerate their shift from a classified marketplace to an online, transactional model to create even better experiences for HomeAway's global traveler audience and the owners and managers of its 1.2 million properties around the world."
- The deal is partly seen as an attempt to counter the rise of home/apartment rental marketplace Airbnb (Pending:AIRB), which was reportedly valued at an eye-popping $25.5B in a June round. Airbnb has long been seen a threat to HomeAway (though HomeAway has insisted it differs from Airbnb due to its focus on secondary home rentals), and Expedia admitted on its Q3 earnings call Airbnb could exert price pressure in some hotel markets by increasing available room inventory.
- Earlier: Expedia buying HomeAway for $3.9B
Nov. 4, 2015, 4:21 PM
- Expedia (NASDAQ:EXPE) is buying leading vacation rental marketplace HomeAway (NASDAQ:AWAY) for $3.9B in cash and stock, or $38.31/share based on Expedia's Tuesday close.
- Expedia will pay $10.15/share in cash and issue 0.2065 shares for each HomeAway share. The deal is expected to close in Q1 2016.
- AWAY is halted. EXPE is up fractionally after hours.
Oct. 30, 2015, 1:57 PM
- TripAdvisor (TRIP +4.6%) has joined Priceline (previously covered) in getting a lift after Expedia (EXPE +9.3%) reported a 21% Y/Y increase in gross bookings to $15.4B, aided by a 36% increase in hotel room nights and a 31% increase in air tickets sold.
- Also: On its earnings call (transcript), Expedia hiked its full-year adjusted EBITDA growth forecast (exc. eLong) to 12%-15% from 10%-15%. Excluding recently-acquired Orbitz, growth is expected to be at the high end of the range. Including Orbitz, it's expected to be at the low end.
- CEO Dara Khosrowshahi estimates Orbitz would have delivered 2015 adjusted EBITDA of $135M on a standalone basis, below Street expectations. However, he added Expedia now thinks there's "meaningful upside" to a prior target for $75M/year in acquisition-related synergies.
- Khosrowshahi also insisted Expedia still has a long growth runway - "Keep in mind that we're still just a single-digit percentage of total room nights in the U.S." - and downplayed fears of competition from fast-growing Aribnb (Pending:AIRB), albeit while admitting Airbnb could "put pricing pressure in certain markets where you see a significant amount of Airbnb inventory." CFO Mark Okerstrom forecast hotel margin pressure will continue through 2016, but ease towards the end of the year.
- Benchmark, RBC, and Cantor have hiked their Expedia targets. Shares have made fresh highs. TripAdvisor, stung on Tuesday by a Macquarie downgrade, reports on Nov. 5.
Oct. 29, 2015, 6:01 PM
- Expedia (NASDAQ:EXPE) has jumped to $135.70 after hours, making new highs after beating Q3 EPS estimates (while slightly missing on revenue) and reporting a 21% Y/Y increase in gross bookings (exc. eLong) to $15.4B, a slight improvement from Q2's 20% growth. Rival Priceline (NASDAQ:PCLN), which reports on Nov. 9, is up 1.1% to $1,441.00.
- Q3 geographic performance: U.S. revenue rose 18% Y/Y to $1.05B, and international revenue 15% (33% exc. forex) to $890M. U.S. bookings rose 22% to $9.6B, and international bookings 19% (37% exc. forex) to $5.8B.
- Metrics: Hotel room nights +36% Y/Y to 61.5M (25% U.S. growth, 50% international); revenue/night -15%. Air tickets sold +31%; revenue/ticket -9%. The core travel agency business (OTA) saw revenue rise 18% to $1.74B; trivago (metasearch) revenue rose 27% to $176M, and Egencia (managed travel services) fell 3% to $94M.
- Sales/marketing spend (much of it going to Google) remained heavy, rising 20% Y/Y on an adjusted basis to $929.8M. Expedia ended Q3 with $1.5B in cash, and $2.5B in long-term debt.
- Q3 results, PR
Oct. 29, 2015, 4:12 PM
- Expedia (NASDAQ:EXPE): Q3 EPS of $2.07 beats by $0.05.
- Revenue of $1.94B (+13.5% Y/Y) misses by $20M.
Oct. 28, 2015, 5:35 PM
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