Webjet Limited's (ASX: WEB) shares have taken-off this morning after the online travel and accommodation booking company released an unexpectedly upbeat set of results to the market.
For the first half, Webjet has recorded a 64% rise in revenues, a 21.5% jump in normalised earnings before interest, tax, depreciation and amortisation (EBITDA), a 24% increase in normalised net profit and a 12.4% boost to earnings per share.
The past year has been a tumultuous time for Webjet's shareholders as the market relegated the stock to the "ex-growth" category. This led to a fall in the share price from the $5 level all the way down to $2.40. Today's 27% bounce sees the stock trading back above $3, as investors presumably reassess the growth potential of the company in light of the latest reported results.
Foolish takeaway
Interestingly Webjet's peer, Wotif.com Holdings Ltd's (ASX: WTF) share price has hardly moved this morning. Given Wotif.com has endured a similar experience to Webjet in the past year, it will be interesting to see if the market reassesses its valuation of Wotif.com too.
