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Expedia post-earnings plunge leads online travel names lower

Published 10/27/2017, 08:06 AM
© Reuters.  Expedia post-earnings plunge leads online travel names lower
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  • Expedia (NASDAQ:EXPE) last night reported Q3 adjusted EPS of $2,51, shy of estimates by $0.11. Hurting results was the series of hurricanes in late summer, and gross bookings, room nights, revenue, and EBITDA all missed estimates.
  • Management also cut full-year expected EBITDA growth to the mid-high single digits, and "soft guided" to 2018 EBTIDA growth of low double digits, says RBC's Mark Mahaney.
  • Mahaney remains a long-term bull on the stock, but is "near-term cautious."
  • "We see a tremendous growth runway for HomeAway in particular as the company grows its footprint domestically and pushes into International markets and urban locations. With only one-third of HomeAway properties Instantly Bookable, we believe it is still early days for this asset."
  • He's still at Outperform, but cuts his price target to $155 from $175. EXPE -15.8% premarket to $124.10. Susquehanna and Stifel also lower price targets, and BofA downgrades from Buy to Neutral.
  • PCLN -1.4%, TRIP -3.25%, LTRPA -0.9%,
  • Now read: TripAdvisor: Expect Either A New Buyback Plan Or A Sale Of The Company


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