Expedia's Stock Falls After Profit Falls Below Expectations

Shares of Expedia Inc. slumped 3.8% in after-hours trade Thursday, after the online travel services company reported a surprise decline in fourth-quarter profit. For the quarter ended Dec. 31, net earnings fell to $66 million, or 50 cents a share, from $94.7 million, or 70 cents a share, in the year-earlier period. Excluding non-recurring items, adjusted earnings per share slipped to 86 cents from 92 cents, while the FactSet consensus analyst estimate was for an increase to $1.01. Revenue increased 18% to $1.36 billion, matching analyst forecasts. Gross bookings grew 24%, with domestic booking rising 29%. The stock has gained 6% over the past three months through Thursday's close, while the S&P 500 has advanced 1.9%.