Benchmark Cuts Price Target on Expedia (EXPE), Still Optimistic on Future
EXPE Hot Sheet
Rating Summary:9 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Benchmark is maintaining its Hold rating on shares of Expedia (NASDAQ: EXPE) and is reducing its price target from $34 to $33 following the release of its Q4 results.
The company's gross booking rose 10 percent year over year in the quarter, while revenues margins declined 30 bps and total sales fell below the Street's consensus.
The firm notes expenses exceed expectations in in Tech & Content and G&A,
due to ongoing investment in the global technology platform. The company's management team did highlight adjusted EBITDA may climb up in the mid-single digits in 2012.
An analyst at Benchmark comments, "Expedia should continue to gain market share from traditional travel agents due to its discounted prices, strong brand awareness and array of travel websites. Similar to Priceline’s (Nasdaq: PCLN) “Name Your Own Price” platform, hoteliers may turn to Hotwire to rid themselves of excess inventory."
For fiscal FY12 and FY13, the firm forecasts EPS of $2.78 and $3.21.
For an analyst ratings summary and ratings history on Expedia click here. For more ratings news on Expedia click here.
Shares of Expedia closed at $34.16 yesterday, with a 52 week range of $19.61-$34.25.
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The company's gross booking rose 10 percent year over year in the quarter, while revenues margins declined 30 bps and total sales fell below the Street's consensus.
The firm notes expenses exceed expectations in in Tech & Content and G&A,
due to ongoing investment in the global technology platform. The company's management team did highlight adjusted EBITDA may climb up in the mid-single digits in 2012.
An analyst at Benchmark comments, "Expedia should continue to gain market share from traditional travel agents due to its discounted prices, strong brand awareness and array of travel websites. Similar to Priceline’s (Nasdaq: PCLN) “Name Your Own Price” platform, hoteliers may turn to Hotwire to rid themselves of excess inventory."
For fiscal FY12 and FY13, the firm forecasts EPS of $2.78 and $3.21.
For an analyst ratings summary and ratings history on Expedia click here. For more ratings news on Expedia click here.
Shares of Expedia closed at $34.16 yesterday, with a 52 week range of $19.61-$34.25.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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Hotel Revenue Management
Hotel Technology on Feb 11, 2012 03:13 PMMark as Spam
Cost and revenue management are so important for meeting the bottom line. Here's a great article on how technology and internet are changing today's hotel and travel industry for the better: http://bit.ly/tDpkLk