expe

Expedia Inc (NASDAQ:EXPE) announced financial results today for the fourth quarter and full year ended December 31, 2015.

All figures below exclude eLong and include the impact from acquisitions, unless otherwise noted.

Key Highlights:

  • Room night growth accelerated to 39% year-over-year in the fourth quarter of 2015, with domestic and international room nights growing 33% and 47% year-over-year, respectively.
  • Gross bookings increased 40% and revenue increased 29% year-over-year in the fourth quarter of 2015. Foreign exchange had a negative impact of 6 percentage points on gross bookings growth and 5 percentage points on revenue growth in the fourth quarter of 2015.
  • For full year 2015, Expedia delivered $1.2 billion of Adjusted EBITDA(1) representing growth of 11% year-over year. The Paris terrorist attacks in November 2015 negatively impacted Adjusted EBITDA by an estimated $10 million to $15 million.
  • On December 15, 2015, Expedia, Inc. completed its acquisition of HomeAway, Inc., including all of its brands, capping off a year in which Expedia completed a total of over $6 billion in strategic transactions.

Inorganic Impacts

  • Inorganic impact from acquisitions added approximately 15 percentage points of room night growth, 28 points of gross bookings growth and 19 points of revenue growth in the fourth quarter of 2015.
  • For full year 2015, the consolidation of Orbitz Worldwide and HomeAway financial statements (including deal and integration costs) negatively impacted Adjusted EBITDA by approximately $39 million and Adjusted EBITDA growth by 4 percentage points.

Gross Bookings & Revenue (excluding eLong)

For the fourth quarter of 2015, total gross bookings increased 40% (including a negative 6 percentage points of foreign exchange impact), driven primarily by 28 percentage points of inorganic impact from acquisitions, as well as growth in the Core OTA business, including strong performance at Brand Expedia and Hotels.com. Domestic gross bookings increased 50% and international gross bookings increased 26% (including a negative 13 percentage points of foreign exchange impact). International bookings totaled $5.3 billion and accounted for 36% of worldwide bookings, compared with 40% in the fourth quarter of 2014.

For the full year 2015, total gross bookings increased 24% (including a negative 6 percentage points of foreign exchange impact), driven primarily by 11 percentage points of inorganic impact from acquisitions, as well as growth in the Core OTA business, including strong performance at Brand Expedia and Hotels.com. Domestic gross bookings increased 26% and international gross bookings increased 21% (including a negative 17 percentage points of foreign exchange impact). International bookings totaled $22.3 billion and accounted for 37% of worldwide bookings, compared with 38% in the prior year. The decrease in international gross bookings mix was primarily due to the acquisition of Orbitz Worldwide, which bolstered domestic gross bookings for both the fourth quarter and the full year 2015.

For the fourth quarter of 2015, total revenue increased 29% (including a negative 5 percentage points of foreign exchange impact), driven primarily by 19 percentage points of inorganic impact from acquisitions, growth in the Core OTA business, including strong performance at Brand Expedia, Hotels.com and EAN, as well as at trivago. Domestic revenue increased 34% and international revenue increased 22% (including a negative 9 percentage points of foreign exchange impact). International revenue equaled $721 million, representing 42% of worldwide revenue, compared to 45% in the fourth quarter of 2014.

For the full year 2015, total revenue increased 19% (including a negative 9 percentage points of foreign exchange impact), driven primarily by 8 percentage points of inorganic impact from acquisitions, growth in the Core OTA business, including strong performance at Brand Expedia, Hotels.com and EAN, as well as at trivago. Domestic revenue increased 22% and international revenue increased 15% (including a negative 16 percentage points of foreign exchange impact). International revenue equaled $2.9 billion, representing 44% of worldwide revenue, compared to 45% in the prior year.

The decrease in international revenue mix was primarily due to the acquisition of Orbitz Worldwide, which bolstered domestic revenue for both the fourth quarter and the full year 2015. (Original Source )

Shares of Expedia jumped nearly 11% in after-hours trading. EXPE has a 1-year high of $140.51 and a 1-year low of $76.92. The stock’s 50-day moving average is $109.69 and its 200-day moving average is $119.36.

On the ratings front, Expedia has been the subject of a number of recent research reports. In a report released yesterday, Barclays analyst Paul Vogel maintained a Buy rating on EXPE, with a price target of $120, which represents a potential upside of 27.2% from where the stock is currently trading. Separately, on the same day, The Benchmark Company’s Daniel Kurnos reiterated a Buy rating on the stock and has a price target of $125.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Paul Vogel and Daniel Kurnos have a total average return of -10.9% and 1.8% respectively. Vogel has a success rate of 20.8% and is ranked #3075 out of 3560 analysts, while Kurnos has a success rate of 43.4% and is ranked #884.

The street is mostly Bullish on EXPE stock. Out of 7 analysts who cover the stock, 5 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $159.75, which represents a potential upside of 69.3% from where the stock is currently trading.

Expedia Inc is an online travel company. The Company offers holiday packages, rental cars, cruises, as well as destination services and activities. Its business segments are Leisure and Egencia.