Expedia Earnings: What To Look For From EXPE

Radek Strnad /
2022/11/02 3:43 am EDT

Online travel agency Expedia (NASDAQ: EXPE) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Expedia reported revenues of $3.18 billion, up 50.6% year on year, beating analyst revenue expectations by 6.42%. It was a stunning quarter for the company, with exceptional revenue growth and growing number of users. The company reported 79.1 million nights booked, up 39.7% 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 21.2% year on year to $3.59 billion, slowing down from the 96.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.13 per share.

Expedia Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing six upwards 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 Q3 earnings results, giving us a hint of what we can expect. Airbnb delivered top-line growth of 28.9% year on year, beating analyst estimates by 1.26% and Snap reported revenues up 5.71% year on year, missing analyst estimates by 0.91%. Snap was down 21.5%, and Airbnb was down 3.21%. Read our full analysis of Airbnb's results here and Snap's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 3.92% over the last month. Expedia is up 0.73% during the same time, and is heading into the earnings with analyst price target of $143.9, compared to share price of $94.41.

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