Thu, Apr. 2, 12:04 PM
- Though Expedia (NASDAQ:EXPE) sports a 27 P/E following a run-up in the wake of the Orbitz deal, that figure is misleading, argues Cowen's Kevin Kopelman.
- Kopelman's arguments: 1) eLong (65%-owned by Expedia, not faring well lately in China's hotly competitive online travel market) depresses Expedia's EPS by 15%. 2) Orbitz will boost profits by 15% or more. 3) The Trivago European hotel metasearch unit (declared to be a "multi-billion dollar growth asset") is running at breakeven for now.
- His target (based on a sum-of-the-parts analysis) has been hiked by $25 to $115. Expedia has jumped to fresh highs, and is now up 14% YTD.
Wed, Mar. 25, 6:12 PM
- Expedia (NASDAQ:EXPE) and Orbitz (NYSE:OWW) have both received a request for additional information related to the DOJ's antitrust review of Expedia's planned $1.6B acquisition of Orbitz. Naturally, the companies plan to "respond to the second request and to cooperate fully with the DOJ."
- The deal, together with Expedia's planned $280M acquisition of partner Travelocity, has sparked fears within the industry Expedia will have an oversized position in the U.S. online travel market, thus giving it excessive leverage with hoteliers. Priceline has a larger share overseas.
Tue, Mar. 10, 9:16 AM
- Expedia (NASDAQ:EXPE) says it will partner more closely with Latin American online travel sites Decolar.com and Despegar.com under the terms of a new deal with Decolar.
- The arrangement will see Expedia and Decolar share more hotel supply with each other.
- Expedia has also made a $270M equity investment in Decolar.
Wed, Feb. 25, 5:47 PM
- As part of a broader Internet sector launch, Morgan Stanley has launched coverage on YELP and GrubHub (NYSE:GRUB) with Overweight ratings, and on Expedia (NASDAQ:EXPE) and InterActiveCorp (NASDAQ:IACI) with Underweight ratings, after the close. YELP +2% AH. GRUB +2.5%. EXPE -1.4%. IACI -1%.
- Yelp was upgraded by Brean two weeks ago, shortly after the company hiked its Q1/2015 guidance and announced it's buying online food-ordering service Eat24.
- GrubHub rallied three weeks ago following a Q4 beat, and received bullish coverage from Barclays last week.
- Expedia tumbled three weeks ago thanks to a Q4 miss and light 2015 guidance, but reversed course after announcing it's buying Orbitz and thereby bolstering its U.S. online travel leadership position.
- IAC sold off earlier this month following its Q4 beat, but has since more than recovered its losses.
Thu, Feb. 19, 2:28 PM
- Expedia (EXPE +2%) and TripAdvisor (TRIP +3.9%) are having a good day after Priceline beat Q4 estimates in spite of being heavily pressured by a weak euro, and reported 17% Y/Y bookings growth (above guidance of 8%-15%).
- The online travel giant's Q1 guidance - 4%-11% revenue growth vs. a 13.5% consensus, and 2%-9% bookings growth (14%-21% in constant currency) - is light, but better than feared given forex and Priceline's history of guiding conservatively.
- The shoe was on the other foot last week: Priceline rallied in response to TripAdvisor's results and the Expedia/Orbitz deal.
Thu, Feb. 12, 12:45 PM
Thu, Feb. 12, 9:15 AM| 5 Comments
Thu, Feb. 12, 8:33 AM| 2 Comments
Fri, Feb. 6, 9:31 AM
- "We are expecting a deceleration in revenue growth in 2015 on headwinds from Travelocity implementation, further impact from the reduction of our hotel margins, the negative impact of foreign currency and the continued success of our loyalty programs," stated Expedia (NASDAQ:EXPE) CFO Mark Okerstrom on the Q4 CC (transcript). The revenue boost from the Wotif acquisition will partly offset.
- Okerstrom added Expedia isn't "expecting any meaningful adjusted EBITDA growth in the first quarter and expect the bulk of our adjusted EBITDA dollar growth to come in the back half of the year." Excluding the 65%-owned Chinese eLong (LONG -4.8%) unit, which is expected to see losses grow amid tough competition from Ctrip/Qunar, adjusted EBITDA growth is expected to be in the 10%-15% range, with forex having a 5% impact.
- Expedia's Q4 gross bookings rose 24% Y/Y to $11.3B, but revenue rose a more modest 19% and adjusted EBITDA (exc. eLong) 13%. A 10% Y/Y drop in revenue/hotel room night and 6% drop in revenue/air ticket (both hurt by forex) pressured the top line, and a 29% increase in sales/marketing spend (thanks to Google and TV ad spend) pressured the bottom line.
- Some positives: Hotel room night still rose 28%, and air tickets sold 30%. U.S. bookings grew 29%, and international 18% (forex again).
- Priceline (NASDAQ:PCLN), which has heavier international exposure than Expedia, is also lower. Its Q4 report arrives on Feb. 19.
- Expedia's Q4 results, PR (.pdf)
Fri, Feb. 6, 9:12 AM
Thu, Feb. 5, 4:08 PM
Wed, Feb. 4, 5:35 PM
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Mon, Jan. 26, 2:57 PM
- There could be some good news for hotel stocks coming out of the Americas Lodging Investment Summit conference this week, according to CNBC.
- A senior lodging forecaster is expected to announce that the market is set to absorb a significant room rate hike this year.
- Some major markets will see room rate increases of over 8%, say analysts.
- ALIS conference agenda (.pdf)
- Hotel stocks: BEL, CHH, EXPE, H, HLT, HMIN, HOT, IHG, MAR, STAY, WYN.
Fri, Jan. 23, 9:27 AM
Fri, Jan. 16, 4:08 PM
- Oppenheimer observes the FTC has disclosed it granted Expedia (EXPE +1.2%) and Sabre (SABR +1.5%) an early termination notice regarding an antitrust review filing, with the acquired entity in the transaction being Travelocity.
- With no announcement yet from either company, Oppenheimer states it "can only opine on the probability that Expedia is in the process of acquiring the entire Travelocity asset" from Sabre.
- Expedia struck a deal with Sabre in 2013 to power Travelocity's tech platforms and provide its travel inventory, in exchange for a 50% revenue share; that deal provided a big lift to 2014 bookings. Oppenheimer argues a full acquisition of the travel platform would be a win-win: It would boost Expedia's U.S. share and top line, and would allow Sabre to shed a non-core asset and further de-lever its balance sheet.
- Expedia's Q4 report is due on Feb. 5.
Dec. 30, 2014, 12:19 PM
- Believing growth has slowed in December, FBR's Jake Fuller thinks Expedia (EXPE -2.8%) could miss a Q4 U.S. bookings consensus for high-20s growth.
- Fuller, who maintains an Outperform rating and $100 target, thinks air ticket growth has slowed in Q4, and expects tougher comps (due to Expedia's Travelocity deal going into effect a year ago) to also weigh on December growth. He still thinks the company can hit a 23% global bookings growth consensus, since it doesn't yet account for the Wotif acquisition.
- Expedia's Q3 U.S. bookings rose 35% Y/Y (thanks in part to Travelocity), and made up 58% of total bookings.
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