Shares of Expedia Inc., an online travel agency, gained the most since July 2012 after third-quarter earnings beat analysts’ estimates.
The stock rose 18 percent to $58.97 at Thursday's close in New York, following Wednesday’s release of the company’s quarterly results.
Profit excluding some items rose to $1.43 a share, or $201 million, from $1.32, or $188 million, the year earlier. Analysts had expected $1.36. Revenue climbed to $1.4 billion, compared with the $1.38 billion analyst estimate.
Expedia was helped by more people using the service to book hotel rooms, and by an increase in media and advertising revenue, the company said in a statement.
“Earnings were very good and the outlook was very good,” said Michael Millman, an analyst at Millman Research Associates, who added that Expedia’s stock is making up for a decline after the previous quarter’s earning report.
The Bellevue, Washington-based company competes with Orbitz Worldwide Inc., Priceline.com Inc. and TripAdvisor Inc. for travelers seeking to book trips online.
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