Online travel agency Expedia (NASDAQ:EXPE) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
Expedia beat analysts’ revenue expectations last quarter, reporting revenues of $3.43 billion, up 14.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter slightly topping analysts’ expectations. It reported 113.9 million nights booked, up 5.8% 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 10.2% year on year, improving from the 6.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 2.2%, and Reddit reported revenues up 61.1%, topping estimates by 9.9%. Alphabet traded down 7.1% following the results while Reddit was also down 21.8%.
Read our full analysis of Alphabet’s results here and Reddit’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Expedia is up 13.3% during the same time and is heading into earnings with an average analyst price target of $293.71 (compared to the current share price of $302.23).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.