Shares of Expedia are getting trashed in after-hours trading, following the Bellevue company’s latest earnings announcement which showed a 27 percent decline in adjusted net income. The company’s earnings missed targets, which analysts had estimated would come in at an average of 79 cents earnings per share. The company came in at 64 cents earnings per share.
“We knew we were facing second quarter headwinds and those which we expected, as well as some we didn’t, materialized,” said Expedia CEO Dara Khosrowshahi. “Despite this, we remain confident about our long-term strategy. We see continued return on our core brands’ technology investments, broader adoption of Expedia Traveler Preference Program, momentum in our recent acquisitions and emerging markets as well as exciting traction in one of travel’s fastest growth channels – mobile.”
The stock fell 25 percent.
Expedia’s revenue grew 16 percent year-over-year to $1.2 billion, assisted in part by media revenue generated from its recent acquisition of hotel metasearch company, Trivago GmbH. The Bellevue company finished the quarter with cash, cash equivalents, restricted cash and short-term investments totaled $2.3 billion.
UPDATE: As of Friday morning at 7:20 a.m., the stock was down 26 percent, trading at about $48 per share.
Here’s a look at the grim picture in chart form, showing the stock performance of Expedia year-to-date..