Earnings To Watch: Expedia (EXPE) Reports Q1 Results Tomorrow

Adam Hejl /
2022/05/02 3:53 am EDT

Online travel agency Expedia (NASDAQ: EXPE) will be reporting results today after market hours. Here's what to look for.

Last quarter Expedia reported revenues of $2.27 billion, up 147% year on year, slightly missing analyst expectations by 0.81%. Despite that, it was a decent quarter for the company, with an exceptional revenue growth and growing number of users. The company reported 62.9 million nights booked, up 74.2% year on year.

Is Expedia buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Expedia's revenue to grow 80.6% year on year to $2.25 billion, improving on the 43.5% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.48 per share.

Expedia Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two upward and four downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Expedia's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Snap delivered top-line growth of 38% year on year, missing analyst estimates by 0.57% and Meta reported revenues up 6.63% year on year, missing analyst estimates by 1.11%. Snap traded up 8.2% on the results, Meta was up 12.1%. Read our full analysis of Snap's results here and Meta's results here.

The technology sell-off has been putting pressure on stocks since November and consumer internet stocks have not been spared, with share price down on average 17.1% over the last month. Expedia is down 11.8% during the same time, and is heading into the earnings with analyst price target of $213.8, compared to share price of $175.55.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.