Tuesday, May 08, 2007 5:19:37 PM
EXPE $25 - 22.5 - $24 misses by $0.02, beats on revs (24.81 ) : Reports Q1 (Mar) adjusted earnings of $0.18 per share, excluding non-recurring items, $0.02 worse than the Reuters Estimates consensus of $0.20; revenues rose 11.5% year/year to $550.5 mln vs the $531 mln consensus. Briefing.com Note: EPS Consensus contains estimates ranging from $0.17 to $0.26; revenue consensus contains estimates ranging from $$552.5 mln to $507.1 mln. Gross bookings rose 8% to $5.016 bln. CEO Diller comments, "From the very difficult prior year, and a first quarter this year reflecting growth, we begin 2007 with renewed confidence in Expedia's operations and business model. With accelerating transaction growth, a 32% increase in European bookings, 11% revenue growth and the very beginning echoes of resurgence at Expedia.com we are seeing the early results of the reinvestments and reorganizations that made last year so challenging. We can't yet say what the next quarter or year may bring, but clear progress is being made both under the hood of daily work and structurally, with reduced share counts and a focus on managing for free cash flow over the long term."
Expedia upgraded to Buy from Hold at Stifel- tgt $29 (23.90 -0.91) -Update :
08-May-07 12:05 ET In Play Expedia: Earnings Conference Call Summary (23.15 -1.66) -Update : On conference call, EXPE notes they experienced accelerating transaction growth, a 32% increased in European bookings, and 11% rev growth for the quarter. Co states that recent signings of Frontier Airlines, Omni Hotels, Shangri-La Hotels and Hertz shows their ongoing progress in creating world's most compelling mkt place of travel products and services. Co says rev increased due to increased worldwide merchant hotel rev and advertising rev. Co notes worldwide merchant hotel rev increased 17% while worldwide air rev decreased 16% for the quarter due to a 20% decrease in rev per air ticket. For 2007 EXPE says they expect positive single digit "OIBA" growth for 2007. Co sees flat to slightly negative air margin growth for the year. Co notes Q2 will be very challenging compared to Q1. They note will be increasing brand spend for the year and that they expect Capex to increase 10% in 2007. Co notes that they saw a 3% increase in transactions in March and sees continued strength into April and May. Co does expect to see bottom-line pressure in Q2. They state that co does not have control over average price of airline tickers and room nights. Co believes this can impact bookings, but is focused on increasing transaction rates which should result in booking growth. In Q&A co was asked about consolidation and noted they have opportunities in front of them and engage in talks, but have no reason to speculate on any such news. Co also noted they are buyers of EXPE stock, but will only speak of this in the past tense and not announce stock buy backs.
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Expedia upgraded to Buy from Hold at Stifel- tgt $29 (23.90 -0.91) -Update :
08-May-07 12:05 ET In Play Expedia: Earnings Conference Call Summary (23.15 -1.66) -Update : On conference call, EXPE notes they experienced accelerating transaction growth, a 32% increased in European bookings, and 11% rev growth for the quarter. Co states that recent signings of Frontier Airlines, Omni Hotels, Shangri-La Hotels and Hertz shows their ongoing progress in creating world's most compelling mkt place of travel products and services. Co says rev increased due to increased worldwide merchant hotel rev and advertising rev. Co notes worldwide merchant hotel rev increased 17% while worldwide air rev decreased 16% for the quarter due to a 20% decrease in rev per air ticket. For 2007 EXPE says they expect positive single digit "OIBA" growth for 2007. Co sees flat to slightly negative air margin growth for the year. Co notes Q2 will be very challenging compared to Q1. They note will be increasing brand spend for the year and that they expect Capex to increase 10% in 2007. Co notes that they saw a 3% increase in transactions in March and sees continued strength into April and May. Co does expect to see bottom-line pressure in Q2. They state that co does not have control over average price of airline tickers and room nights. Co believes this can impact bookings, but is focused on increasing transaction rates which should result in booking growth. In Q&A co was asked about consolidation and noted they have opportunities in front of them and engage in talks, but have no reason to speculate on any such news. Co also noted they are buyers of EXPE stock, but will only speak of this in the past tense and not announce stock buy backs.
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