Online travel agent, Expedia (NASDAQ:EXPE) skyrocketed more than 18% to $59.10 per share after hours on Tuesday. The gain was due to its third quarter earnings result that beat the consensus estimates of Wall Street analysts on Wednesday.
During the third quarter, Expedia reported $1.43 adjusted earnings per share, higher than the $1.35 earnings per share estimate of analysts. Its revenue was $1.4 billion compared with $1.37 billion consensus estimate. According to the company, its revenue increased by 17% year-over-year due to the growth of its brands Expedia, Trivago, and Hotels.com.
According to the company, its operating income was $238.7 million, up from $227.1 million during the third quarter last year. Its income from continuing operations also climbed from $169.9 million to $170.9 million.
Expedia reported that its gross bookings increased by 15% to $10.43 billion from $9.05 billion in the same period a year earlier. According to the company, its domestic and international bookings increased by 13% and 18%, respectively.
Its bookable properties went up by 27,000 to 240,000 during the quarter. The company said its room nights climbed 20% to 44.1 million while its mobile app downloads was approximately 80 million, an increase of 28 million.
The online travel agent said its daily room rates were flat year-over-year during the third quarter while its average airfares climbed by 3%. Expedia posted a 7% increased in the sales of air tickets on an annual basis due to the strong growth of its Expedia brand.
According to the online travel agent, its international sales accounts more than 50% of its total room nights for the fifth consecutive quarter.
Based on its third quarter financial performance, Expedia seemed to conquer the strong competition in the travel industry after enhancing its technology and entering strategic agreements. Last August, the company signed a long-term agreement with Travelocity to handle bookings, customer queries and searches. Travelocity focused its efforts in attracting customers.
Expedia reported sales and marketing expenses increased by 24% to $621 million, the costs of its technology and content rose by 14% to $138 million, costs of revenue went up by 13% to $275 million, and general and administrative expense rose by 9% to $85 million. Its total costs and expenses for the period were $1.12 billion.