Expedia Inc (NASDAQ:EXPE) shares plummeted after the bell as the company unveiled its third-quarter results.
investorplace.com/wp-content/uploads/2012/06/Expedia185-150×150.jpg 150w, investorplace.com/wp-content/uploads/2012/06/Expedia185-40×40.jpg 40w, investorplace.com/wp-content/uploads/2012/06/Expedia185-30×30.jpg 30w, investorplace.com/wp-content/uploads/2012/06/Expedia185-65×65.jpg 65w, investorplace.com/wp-content/uploads/2012/06/Expedia185-100×100.jpg 100w, investorplace.com/wp-content/uploads/2012/06/Expedia185-80×80.jpg 80w, investorplace.com/wp-content/uploads/2012/06/Expedia185-125×125.jpg 125w, investorplace.com/wp-content/uploads/2012/06/Expedia185-50×50.jpg 50w, investorplace.com/wp-content/uploads/2012/06/Expedia185-71×71.jpg 71w,https://investorplace.com/wp-content/uploads/2012/06/Expedia185-120×120.jpg 120w” sizes=”(max-width: 185px) 100vw, 185px” />For the period, the travel services website posted earnings of $2.51 per share, missing the analysts’ consensus estimate of $2.62 per share. Quarterly revenue came in at $2.97 billion, gaining 15% year-over-year but falling below the Wall Street projection of $2.98 billion.
Gross bookings were light for the quarter, gaining 11% year-over-year to $22.2 billion, marking a $2.1 billion growth compared to the year ago period. This was the first quarter in which Expedia no longer had the services of former CEO Dara Khosrowshahi, who left to take charge of Uber.
The company owns the likes of Hotels.com and Orbitz. Part of the reason why bookings underwhelmed was due to extreme weather circumstances, including the various hurricanes and natural disasters that struck the U.S. during the period.
Expedia said it predicts a “negative impact of approximately $15 million to $20 million from the recent natural disasters” as these storms discouraged travelers from leaving their home. Former CFO Mark Okerstrom is the new company boss.
He pointed at other tragedies that affected the company’s business as well, both overseas and in the U.S. He mentioned both the terrorist activity in Barcelona and the tragic shooting in Las Vegas.
“Aside from that, when we look at the macro environment it still looks reasonably solid and a lot of the trends that we have seen for some time now look to be continuing,” said Okerstrom.
EXPE stock fell 14.5% after hours.