What Does Expedia Raising Its Dividend Signify?
Even after facing a challenging Q2 2016 mainly on account of integration problems with all its acquired entities on its platform, Expedia has raised its dividend by ~8% to $0.26 per share. This implies that the management has ample confidence in Expedia’s future growth prospects despite the company falling short of expectations in its recent performance. It is noteworthy to mention that both its rivals, Priceline and TripAdvisor, do not pay dividends to their shareholders.
Expedia acquired big players including Travelocity, Orbitz, and HomeAway in 2015, which aided it in the consolidation of the U.S. OTA market. Though Expedia’s Q2 2016 results beat analyst estimates in terms of profit, the company’s revenues fell short of expectations which was mostly a result of the room night decline to 20% (as against 35% in Q2 2015). Expedia’s network infrastructure problems hurt room night conversions. Expedia’s host of acquisitions last year are now being integrated into the company’s platform, and though a lot of it is completed, these integration issues had led to network problems. However, once the integration is completed, we can expect the company to emerge as a stronger entity in the OTA market.
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Have more questions on Expedia? See the links below.
- Top 3 U.S. OTAs: A Comparison Of Operating Margins
- What Drove Expedia’s Revenue And EBITDA Growth Over The Last Five Years?
- What Is Expedia’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- Top 3 U.S. OTAs: A Comparison Of Operating Margins
- Expedia Year 2015 Review
- How Have Expedia’s Different Segments Performed Over The Last Five Years?
- Expedia Q1 2016 Earnings Results
- How Does Expedia’s Financial State Currently Look?
- What Percentage of Expedia’s Stock Price Can Be Attributed To Growth?
- Who Relies More On Debt: Priceline Or Expedia?
- What Might Be The Long-Term Impacts Of Brexit On The Online Travel Agencies?
- Where Might Expedia Be Looking For Acquisition Opportunities Currently?
- Expedia’s Q2 2016 Earnings Preview
- Expedia’s Second Quarter Growth Was Undermined By Integration Issues Of Its Acquired Entities
- How Do We Expect Expedia’s Hotels Division To Trend?
- How Is Expedia’s Top Line Trending?
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