News Column

HomeAway shares soar on strong earnings

July 24, 2014

By Lori Hawkins, Austin American-Statesman



July 24--

Austin-based HomeAway Inc. saw its stock soar Thursday after posting second-quarter revenue that beat analysts' expectations.

Shares of the company, which operates the world's leading network of online vacation rentals, rose as much as 8.73 percent to $35.50 in after-hours trading.

For the second quarter ended June 30, HomeAway reported revenue of $114.3 million, up 31.9 percent from the same quarter a year ago. Analysts expected revenue of $110.36 million for the quarter.

The company posted net income of $3.4 million, or 4 cents a share. That compares with net income of $5.5 million, or 6 cents a share, for the same quarter in 2013.

HomeAway reported adjusted earnings of 15 cents a share for the quarter, in-line with Capital IQ consensus estimate of 15 cents, according to Briefing.com.

"We've had another great quarter, once again delivering results above our expectations," HomeAway CEO Brian Sharples said in a written statement. "We also achieved a significant milestone, reaching one million live listings on our global network of sites."

Going forward, Sharples said "with much of our platform and product investment behind us, the next few years will mark a renewed focus on marketing as we strive to make HomeAway one of the most recognized and respected travel brands in the world."

Earnings were released after markets closed. Before the announcement, HomeAway shares closed at $32.65, down $1.23, or 3.63 percent.

Founded in 2005, Home­Away's websites have more than 890,000 paid listings in more than 190 companies. The company has more than 1,400 employees worldwide, including more than 700 in Austin.

In recent months, the company has made a push into the Asia-Pacific region. In December, it paid $198 million in cash for the Stayz Group, which operates the leading Australia-based vacation rental website.

In November, HomeAway bought an ownership stake in New Zealand vacation rental website Bookabach for an undisclosed price. Prior to that, it purchased Singapore-based travelmob.com and formed a partnership with Webo.com, a leading travel search engine in the Asia Pacific.

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(c)2014 Austin American-Statesman, Texas

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Source: Austin American-Statesman (TX)


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