Expedia's 3Q loss smaller than expected

Summary:Expedia beat Street estimates in its third quarter Monday, posting a loss of $17.3m, or 40 cents a share, on sales of $58.8m

First Call consensus expected the online travel service to lose 57 cents a share in the quarter.

Ahead of the earnings report, Expedia shares closed up 4 7/16, or 29 percent, to 19 1/2.

The former Microsoft unit said its total gross booking jumped 60 percent from the second quarter to more than $401m (£256m).

"Commissions and fees from the sale of airline tickets now represent less than 30 percent of our revenues and less than 40 percent of our gross profit," said CEO Richard Burton in a prepared release.

Including one-time charges, Expedia lost $66.5m, or $1.56 a share, in the quarter.

Last quarter, Expedia posted better-than-expected results, losing $5.9m, or 16 cents a share, on sales of $17.8m.

Its shares peaked at 65 7/8 in December before falling to a low of 13 in April.

All four analysts following the stock maintain either a "buy" or "strong buy" recommendation.

What do you think? Tell the Mailroom. And read what others have said.

See ZDII for US tech investor news.

See techTrader for more technology investment news, plus quotes and research.

Topics: Tech Industry

About

Larry Barrett is a freelance journalist and blogger who has covered the information technology and business sectors for more than 15 years. Most recently, he served as the online news editor for 1105 Media's Office Technology Group and as the online managing editor for SourceMedia's Investment Advisory Group publications Financial Pl... Full Bio

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.