Online travel agency Expedia (NASDAQ: EXPE) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Expedia beat analysts’ revenue expectations last quarter, reporting revenues of $3.55 billion, up 11.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter beating analysts’ expectations. It reported 94 million nights booked, up 8.8% year on year.
Is Expedia a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Expedia’s revenue to grow 12.2% year on year, improving from the 3.4% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Expedia’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Booking delivered year-on-year revenue growth of 16.2%, meeting analysts’ expectations, and Amazon reported revenues up 16.6%, topping estimates by 2.4%. Booking’s stock price was unchanged after the resultsand Amazon’s price followed a similar reaction.
Read our full analysis of Booking’s results here and Amazon’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 11.8% on average over the last month. Expedia is up 9.1% during the same time and is heading into earnings with an average analyst price target of $283.79 (compared to the current share price of $249.84).
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