Expedia (EXPE) Q2 Earnings Report Preview: What To Look For

Kayode Omotosho /
2023/08/02 4:00 am EDT

Online travel agency Expedia (NASDAQ: EXPE) will be announcing earnings results tomorrow before market open. Here's what you need to know.

Last quarter Expedia reported revenues of $2.67 billion, up 18.5% year on year, in line with analyst expectations. It was a decent quarter for the company, with impressive growth in its user base. The company reported 94.5 million nights booked, up 22.7% 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 6.03% year on year to $3.37 billion, slowing down from the 50.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.36 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.

With Expedia being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 10.2% over the last month. Expedia is up 7.55% during the same time, and is heading into the earnings with analyst price target of $132.13, compared to share price of $119.96.

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.