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Expedia (EXPE) to Report Q2 Earnings: What's in the Offing?

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Expedia Group, Inc. EXPE is scheduled to report second-quarter 2021 results on Aug 5.

For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $2.04 billion, suggesting growth of 260.2% from the year-ago reported figure.

Further, the consensus mark for the bottom line stands at a loss of 76 cents per share. The company reported a loss of $4.09 per share in the year-ago quarter.

The bottom line surpassed the Zacks Consensus Estimate two times in the trailing four quarters and missed the same twice. Its four-quarter earnings surprise is 9.7%, on average.

Expedia Group, Inc. Price and EPS Surprise

Expedia Group, Inc. Price and EPS Surprise
Expedia Group, Inc. Price and EPS Surprise

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

Key Factors to Note

In the second quarter, Expedia is likely to have benefited from the ongoing vaccination drive throughout the world. In addition, increasing number of vaccinated people in the United States might have improved the domestic business.

Growing bookings through Vrbo for vacation rentals, and rising bookings for resorts and conventional lodging are expected to have been tailwinds.

Strong focus on corporate customers is likely to have benefited its division, Egencia, in the soon to-be-reported quarter.

Further, Expedia’s constant push toward targeted supply acquisition, technological advancements, marketing investments, relevant local content and product innovation is anticipated to get reflected in second-quarter results.

During the quarter, the company introduced a series of updates in its app to be the ultimate travel companion and announced its biggest sale of the year, Expedia Travel Week. This is expected to have driven travelers and might have added strength to the quarterly results.

Further, Expedia’s robust payments platform and expansion of the conversations platform for reducing customer services costs and variable cloud costs is likely to have been positives.

The company’s growing focus on maintaining a strong liquidity position is expected to have helped it in navigating coronavirus-induced crisis.

Yet, headwinds in the global travel industry due to the ongoing pandemic are expected to have remained primary concerns. Also, travel sluggishness in India owing to increasing number of coronavirus cases in the country might have affected second-quarter results.

What Our Model Says

Our proven model predicts an earnings beat for Expedia this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of +38.07% and a Zacks Rank #3, at present.

Other Stocks to Consider

Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.

Agilent Technologies A has an Earnings ESP of +1.16% and a Zacks Rank of 2, at present.

Avnet AVT has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software CYBR has an Earnings ESP of +37.93% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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Avnet, Inc. (AVT) : Free Stock Analysis Report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

Expedia Group, Inc. (EXPE) : Free Stock Analysis Report

CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report

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