Tag Archives: pcln

TripAdvisor Surprises, Joins Expedia In Bolstering Sector

Online travel review firm TripAdvisor ( TRIP ) stock shot up Thursday after the company reported better-than-expected Q4 sales and higher profits from its new instant booking system. TripAdvisor stock was up 15%, near 62, in afternoon trading in the stock market today . The company owns websites such as tripadvisor.com and oyster.com. Analysts have expressed concern  about a slowing global economy, but late Wednesday,  Expedia ( EXPE ) executives assuaged those concerns and said that key markets like the U.S. and Europe remained strong. Expedia stock was up 8% in afternoon trading Thursday, as analysts responded positively to the company’s HomeAway and Orbitz acquisitions . Early Thursday, TripAdvisor said that sales rose 7.3% from Q4 2014 to $309 million. Analysts had estimated $298 million, according to a poll by Thomson Reuters. Earnings clocked in at 45 cents per share minus items, which also beat analyst expectations of 33 cents. On the company’s earnings conference call with analysts, TripAdvisor executives said that the instant booking feature — which allows shoppers to book hotels directly from its website instead of from a third party — expanded to nine more countries in Q4. The online travel reviews company debuted the feature during 2014 in the U.S. and U.K. Display advertising sales growth of 17% contributed to the revenue beat, and subscription revenue rose 23% in Q4. Net earnings per share fell to 2 cents from 25 cents in the year-earlier quarter. RBC Capital Markets analyst Mark Mahaney called the company a “great asset” but “still a risky strategy.” He says that the company has a large customer platform of over 300 million visitors monthly worldwide, though its growth strategy of features such as instant booking carries risks because it may conflict with Priceline ( PCLN ) and Expedia’s interests. Priceline is set to report Q4 results Feb. 17 before the market opens.

Expedia Rises As Analysts Like HomeAway, Orbitz Acquisitions

Expedia ( EXPE ) stock vaulted Thursday, though the company late Wednesday posted Q4 results below expectations. Still, it performed better than the worst fears and saw bookings jump, thanks to a pair of big acquisitions. Expedia stock was up 9% in early afternoon trading on the stock market today , near 103. Expedia partner TripAdvisor ( TRIP ) saw its stock jump 16% Thursday afternoon, after that company reported a Q4 earnings beat before the open. Shares of rival Priceline ( PCLN ) were up 1.5% in afternoon trading. Expedia gave 2016 guidance for EBITDA, or earnings before interest, taxes, depreciation and amortization, which met Wall Street views. Some analysts, though, like its prospects. The growing benefits of Expedia’s recent acquisitions Orbitz and HomeAway are encouraging, RBC Capital Markets analyst Mark Mahaney said in a research note. He cited executives’ commentary on the acquisitions’ momentum and added that he trusts Expedia’s CEO to tell it like it is. “Expedia has emerged as an excellent play on the secular growth in online travel and as a strong integrator of assets,” Mahaney wrote. “Its growth rate outlook and fundamental position have become very comparable to industry leader Priceline, which we also recommend as a stock.” Jefferies analyst Brian Fitzgerald wrote in a research note that the two acquisitions added 28% to booking growth and 19% to sales growth, though he says that they will likely squeeze profit margins for the foreseeable future as Expedia integrates both firms. On the company’s earnings conference call with analysts late Wednesday, Expedia CEO Dara Khosrowshahi said that HomeAway will operate as a separate business while Orbitz is integrated into Expedia’s “technology stack.” Cowen analyst Kevin Kopelman called Q4 results “solid” and reiterated his price target of 135. Macroeconomic Fears Unfounded, For Now The slower economy is an overhang that Expedia seems to be weathering, analyst Mahaney said. “The market has assumed a boat tossed on the violent macro(economic) seas, but we see steady sailing,” Mahaney wrote. On the call, Khosrowshahi said that Expedia has thus far not experienced material macroeconomic effects. Mahaney said that he believes him. Khosrowshahi “was the most vocal and honest Internet CEO during the 2007-08 recession when it came to calling dramatic macro (he called it ‘a dog’s breakfast’ at the time),” Mahaney wrote. “So he has cred with us. And he should with you.” On the call, Khosrowshahi said that the terrorist attacks in Paris cost the company $10 million to $15 million in sales. Foreign exchange also had an impact. “One thing I will remind you as far as the core business is that foreign exchange was a really, really significant headwind last year,” Khosrowshahi said. Despite Mahaney’s positive view, he lowered his price target on Expedia stock to 180 to 160. Expedia and Priceline could consolidate their online travel lead in 2016, some analysts say. “Looking at online travel, we’re getting to the point of relative maturity; it’s no longer an early-stage category,” Guggenheim analyst Jake Fuller told IBD in December. “Thirty-eight percent of total travel is sold online.”

Expedia Sees Currency As Less Of An Issue In 2016; Stock Up

Online travel agent Expedia ( EXPE ) saw its share rise early Thursday, after the company late Wednesday posted Q4 earnings and revenue that missed Wall Street expectations, but executives said currency would be less of a factor this year and that they’ve seen no impact, at least not yet, from the steep drop in global stock markets at the start of this year. And shares of rival  TripAdvisor ( TRIP ) were up 14% after the company posted a Q4 earnings beat before the open. Ahead of Expedia’s earnings report, analysts were cautious  on global macroeconomic concerns and competition with rivals  Priceline ( PCLN ), TripAdvisor and privately held Airbnb. Expedia executives seemed to assuage some fears in comments on the company’s earnings conference call with analysts. Priceline stock was flat in early trading in the stock market today , as the broader market got off to another rough start on macroeconomic worries and falling oil prices. For Q4, Expedia said sales grew 29% to $1.7 billion, while earnings per share ex-items dropped 22% to 77 cents. The consensus estimate of analysts polled by Thomson Reuters called for $1.71 billion and $1 EPS ex items. In Q4, recently acquired Orbitz and HomeAway added $177 million and $20 million, respectively, to Expedia’s top line — which would have been $1.5 billion without them. Gross bookings rose 40%, in Q4, driven by a 28% increase from the company’s acquisitions. The strong dollar cost the company 5% of Q4 revenue growth and 9% of gross bookings growth, Expedia said. Expedia purchased HomeAway, which is focused on vacation rentals, in part because it’s a hedge against Airbnb, a firm that lets people rent out accommodations in their home to travelers. Private investors have valued Airbnb at over $20 billion — though as of late, mutual funds have been under fire for failing to properly value hot startups, such as ride-booking firm Uber and cloud storage provider Dropbox. Barclays analyst Paul Vogel said the Orbitz and HomeAway acquisitions would make it tough to estimate Expedia’s results. Expedia spent over $6 billion on those acquisitions. “There are a number of moving parts within Expedia that we believe have created an uncertain backdrop around forecasts and expectations,” Vogel wrote in a research note Tuesday. Priceline is set to report earnings Feb. 17 before the open.