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E-commerce Stocks' Nov 6 Earnings Roster: EXPE, IAC & More

Zacks Equity Research

Growing proliferation of Internet usage on a global basis is expected to reflect on e-commerce stocks’ quarterly releases. Smart technologies like AI, AR/VR, ML and deep learning — which aid e-commerce companies to offer a personalized user experience to customers — are likely to have positively impacted the performance of these companies this earnings season.

Emerging m-commerce and growing adoption of mobile apps are expected to reflect on financial results of e-commerce companies in the to-be-reported quarter.

However, stiff competition from traditional retailers, foreign exchange headwinds and growing economic uncertainties are anticipated to have hampered the industry participants’ quarterly performance.

Additionally, rising expenses for building advanced infrastructure such as delivery network, warehouses and fulfilment centers — in order to deliver customer orders on time— are expected to have negatively impacted margins of these companies.

Performance of E-commerce Stocks So Far

Amazon.com AMZN and Alibaba Group Holding BABA are some of the notable e-commerce companies that have already released quarterly results.

Amazon reported third-quarter results wherein earnings declined from the year-ago period, while revenues improved on a year-over-year basis. The company’s results benefited from Prime services expansion, robust AWS portfolio and strengthening Alexa features. However, rising expenses remained headwinds.

Alibaba Group reported second-quarter fiscal 2020 results, wherein earnings surpassed the consensus mark and increased from the year-ago period. Revenues missed the Zacks Consensus Estimate but increased from the prior-year quarter. The results reflected strength of the company’s China commerce retail business and strong growth of Alibaba Cloud.

Sneak Peek Into a Few Upcoming Releases

Given this backdrop, let’s see how the following e-commerce stocks are poised ahead of their quarterly results, scheduled to release on Nov 6.

Expedia Group, Inc.’s EXPE third-quarter 2019 results are likely to reflect strength across Core OTA, Vrbo and Egencia. Further, growing stayed room night number and strengthening lodging business owing to expansion of the company’s global lodging portfolio are likely to have benefited the company during the quarter. (Read more: Expedia Group's to Post Q3 Earnings: What's in Store?)

However, rising competition in the online travel space from Booking Holdings and MakeMyTrip, among others, is anticipated to have negatively impacted Expedia’s performance in the third quarter.

Notably, the Zacks Consensus Estimate for earnings has moved south by 0.3% to $3.85 over the past 30 days.

Our proven model does not conclusively predict an earnings beat for Expedia Group this time around. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

The company has an Earnings ESP of -1.12% and a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Expedia Group, Inc. Price and EPS Surprise

 

Expedia Group, Inc. Price and EPS Surprise

Expedia Group, Inc. price-eps-surprise | Expedia Group, Inc. Quote

IAC/InterActiveCorp IAC third-quarter 2019 revenues are expected to have recorded an increase, while earnings are likely to have declined.

The Zacks Consensus Estimate for revenues of $1.24 billion suggests an improvement of 11.9% from the year-ago quarter. The consensus estimate for earnings of $1.02 indicates fall of 31.54% from the prior-year quarter.

The company has an Earnings ESP of -17.88% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

IAC/InterActiveCorp Price and EPS Surprise

 

IAC/InterActiveCorp Price and EPS Surprise

IAC/InterActiveCorp price-eps-surprise | IAC/InterActiveCorp Quote

Carvana Co.’s CVNA earnings and revenues are expected to have got a boost during the third quarter of 2019. The company’s earnings are likely to have benefited from strength in the product portfolio and solid execution. However, increasing expenses might have remain a concern.

The Zacks Consensus Estimate for revenues of $996.5 million implies growth of 86.3% from the year-ago reported number. Further, the consensus mark is pegged at a loss of 39 cents, indicating a 2.5% improvement from the prior-year reported figure.

The company has an Earnings ESP of -6.34% and a Zacks Rank #2.

Carvana Co. Price and EPS Surprise

 

Carvana Co. Price and EPS Surprise

Carvana Co. price-eps-surprise | Carvana Co. Quote

TripAdvisor, Inc.’s TRIP third-quarter earnings are likely to have benefited from strength in the Experiences & Dining segment. Also, its expanding footprint in the international restaurant reservation space and improved cost-control methods are expected to have driven margins in the quarter to be reported.(Read more: What's in the Offing for TripAdvisor's Q3 Earnings?)

However, increasing marketing investments and rising competition may reflect on the company’s results in the quarter to be reported.

Notably, the Zacks Consensus Estimate for earnings has moved north by 3% to 69 cents over the past 30 days.

TripAdvisor has an Earnings ESP of -2.48% and a Zacks Rank #3.

TripAdvisor, Inc. Price and EPS Surprise

 

TripAdvisor, Inc. Price and EPS Surprise

TripAdvisor, Inc. price-eps-surprise | TripAdvisor, Inc. Quote

Capri Holdings Limited’s (CPRI) second-quarter fiscal 2020 earnings are likely to have benefited from the commitment toward deploying resources to expand product offerings and build “shop-in-shops”, as well as upgrading information system and distribution infrastructure. (Read more: Factors Likely to Shape Capri Holdings' Q2 Earnings)

However, costs associated with investments in e-commerce expansion, technological advancements and global infrastructure are likely to get reflected in margins, and consequently the bottom line in the fiscal second quarter.

Notably, the Zacks Consensus Estimate for earnings has remained stable at $1.25 over the past 30 days.

Capri Holdings has an Earnings ESP of 0.00% and a Zacks Rank #3.

Capri Holdings Limited Price and EPS Surprise

 

Capri Holdings Limited Price and EPS Surprise

Capri Holdings Limited price-eps-surprise | Capri Holdings Limited Quote

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TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
 
IAC/InterActiveCorp (IAC) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
 
Capri Holdings Limited (CPRI) : Free Stock Analysis Report
 
Carvana Co. (CVNA) : Free Stock Analysis Report
 
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