Expedia's profits drop due to Hawaii tax dispute
4Q profit plunges 90% on charges
Online travel agency Expedia says revenue rose in the fourth quarter on strong hotel bookings but profit dropped 90 percent because of money set aside for a tax dispute in Hawaii.
Expedia Inc. said Tuesday that it earned $6.7 million in 2012's final three months, down from $70.3 million in the fourth quarter of 2011.
The company says that without the Hawaiian tax issue and other one-items, it would've earned 63 cents per share. FactSet says that analysts, who exclude items, were expecting 65 cents per share.
Revenue was up 24 percent to $974.9 million.
Expedia's shares were up $2.34, or 3.6 percent, to $67.50 in regular trading, and gained another $2.92, or 4.3 percent, to $70.42, in the first few minutes of extended trading after the report.
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