Online travel agency Expedia (NASDAQ:EXPE) will be reporting results tomorrow after the bell. Here's what you need to know.
Expedia beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $2.89 billion, up 8.4% year on year. It was an ok quarter for the company, with solid growth in its bookings but slow revenue growth. It reported 101.2 million nights booked, up 7.1% year on year.
Is Expedia a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Expedia's revenue to grow 5.2% year on year to $3.53 billion, in line with the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.16 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Expedia has missed Wall Street's revenue estimates twice over the last two years.
Looking at Expedia's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 7.3%, beating analysts' expectations by 1.5%, and Airbnb reported revenues up 10.6%, in line with consensus estimates. Booking traded down 8.6% following the results.
Read our full analysis of Booking's results here and Airbnb's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 7.9% on average over the last month. Expedia is down 12.9% during the same time and is heading into earnings with an average analyst price target of $147.4 (compared to the current share price of $112).
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