Expedia (EXPE) to Report Q3 Earnings: What's in the Offing?
Expedia Group, Inc. EXPE is scheduled to report third-quarter 2022 results on Nov 3.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $3.56 billion, suggesting growth of 20.1% from the year-ago quarter’s reported figure.
The consensus mark for earnings stands at $3.87 per share, which has moved 3.8% north in the past seven days. The consensus mark rose 9.6% fromthe year-ago quarter’s reading.
Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with a surprise of 18.2%, on average.
Expedia Group, Inc. Price and EPS Surprise
Expedia Group, Inc. price-eps-surprise | Expedia Group, Inc. Quote
Key Factors to Note
Expedia’s third-quarter performance is likely to have benefited from increasing gross bookings owing to growing travel demand among people.
The Zacks Consensus Estimate for gross booking is pegged at $24.4 billion, increasing 30.1% from the year-ago quarter’s level.
A surge in work-from-home initiatives amid the global coronavirus pandemic continues to encourage people to travel according to their convenience. This flexibility in travel plans might have driven EXPE’s bookings in the to-be-reported quarter.
Expedia continues witnessing an increase in room nights stayed across hotels and alternative accommodations. This might have driven lodging revenues in the underlined quarter. Growth in Average Daily Rate (ADR) is likely to have remained a catalyst.
The Zacks Consensus Estimate for lodging revenues is pegged at $2.65 billion, increasing 15.1% from the year-ago quarter’s level.
Continuous improvement in air-travel demand is increasing the number of air tickets sold. This might have constantly driven air revenues in the quarter under review.
The Zacks Consensus Estimate for air revenues is pegged at $121 million, increasing 98.4% from the year-ago quarter’s level.
Strength of Expedia Group Media Solutions and trivago is expected to have contributed well to Advertising & Media, and Other revenues in the to-be-reported quarter. Growing momentum across travel insurance and car products might have been a tailwind.
EXPE’s deepening focus on brand marketing and maintaining long-term customer relationships might have continued aiding its quarterly performance.
EXPE is consistently making strong efforts to strengthen its platform. This is expected to have driven its B2C and B2B businesses in the quarter to be reported.
EXPE’s vacation rental platform Vrbo is anticipated to have performed well in the third quarter, given the growing optimism about travel plans during the holiday season.
However, uncertainties related to the coronavirus pandemic persisting in the global travel industry are expected to have been a concern for Expedia.
The impacts of the ongoing geopolitical and rising inflation might get reflected in the upcoming quarterly results.
Increasing expenses and stiff competition in the online travel booking space are likely to have affected the quarterly performance.
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, which is precisely the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Expedia has an Earnings ESP of +8.44% and a Zacks Rank #2 at present.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season.
US Foods USFD has an Earnings ESP of +4.58% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting an increase of 22.9% from the prior-year period’s reported figure.
The Trade Desk TTD has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group TME has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
US Foods Holding Corp. (USFD) : Free Stock Analysis Report
The Trade Desk (TTD) : Free Stock Analysis Report
Tencent Music Entertainment Group Sponsored ADR (TME) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
