Expedia (EXPE) Q2 Earnings: What To Expect

Jabin Bastian /
2022/08/03 4:14 am EDT

Online travel agency Expedia (NASDAQ: EXPE) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter Expedia reported revenues of $2.24 billion, up 80.4% year on year, missing analyst expectations by 0.06%. It was an impressive quarter for the company, with an exceptional revenue growth and growing number of users. The company reported 56.5 million nights booked, up 52.2% 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 41.5% year on year to $2.98 billion, slowing down from the 272% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.59 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 eight 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 Q2 earnings results, giving us a hint of what we can expect. Airbnb delivered top-line growth of 57.5% year on year, missing analyst estimates by 0.04% and Uber reported revenues up 105% year on year, exceeding estimates by 9.49%. Airbnb traded down 10% on the results, and Uber traded up 15.4% on the results. Read our full analysis of Airbnb's results here and Uber's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 3.08% over the last month. Expedia is up 4.79% during the same time, and is heading into the earnings with analyst price target of $168.4, compared to share price of $101.83.

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.