Earnings To Watch: Expedia Reports Q4 Results Tomorrow

Kayode Omotosho /
2022/02/09 6:22 am EST

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

Last quarter Expedia reported revenues of $2.96 billion, up 96.9% year on year, beating analyst revenue expectations by 8.94%. It was an incredible quarter for the company, with an exceptional revenue growth and growing number of users. Stayed Room Nights, a key KPI for the company, were up 29 million year over year to 77.8 million.

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 140% year on year to $2.2 billion, improving on the 66.5% year-over-year decline in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.65 per share.

Expedia Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 Q4 earnings results, giving us a hint what we can expect. Lyft (NASDAQ:LYFT) delivered top-line growth of 70.1% year on year, beating analyst estimates by 3.08% and Snap (NYSE:SNAP) reported revenues up 42.4% year on year, exceeding estimates by 8.05%. Lyft was down 3% in the after hours, Snap was up 58%, after being down 23% during the regular session. Read our full analysis of Lyft's results here and Snap's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 12.7% over the last month. Expedia is up 6.79% during the same time, and is heading into the earnings with analyst price target of $194.7, compared to share price of $194.86.

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.