Earnings To Watch: Expedia (EXPE) Reports Q3 Results Tomorrow

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

Last quarter Expedia reported revenues of $3.36 billion, up 5.56% year on year, missing analyst expectations by 0.44%. It was a weaker quarter for the company, with gross bookings and revenue missing analysts' expectations. The company reported 89.7 million nights booked, up 8.73% year on year.

Is Expedia buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Expedia's revenue to grow 6.58% year on year to $3.86 billion, slowing down from the 22.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $5 per share.

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

Looking at Expedia's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Meta delivered top-line growth of 23.2% year on year, beating analyst estimates by 2.03% and Teladoc reported revenues up 7.99% year on year, missing analyst estimates by 0.43%. Meta traded up 4.8% on the results, and Teladoc was down 4.3%.

Read our full analysis of Meta's results here and Teladoc's results here.

Tech stocks have been facing declining investor sentiment since 2022, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 3.56% over the last month. Expedia is down 3.57% during the same time, and is heading into the earnings with analysts' average price target of $125.8, compared to share price of $95.24.

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.

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