Online travel agency Expedia (NASDAQ:EXPE) will be announcing earnings results this Wednesday afternoon. Here’s what to expect.
Expedia beat analysts’ revenue expectations last quarter, reporting revenues of $4.32 billion, up 14% 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 111.5 million nights booked, up 5.7% 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 7.2% year on year, slowing from the 8.7% 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 Q3 results, giving us a hint as to what we can expect. Fiverr’s revenues decreased 15.8% year on year, beating analysts’ expectations by 8.4%, and EverQuote reported revenues up 25.4%, topping estimates by 7.6%. Fiverr traded up 3.8% following the results.
Read our full analysis of Fiverr’s results here and EverQuote’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.7% on average over the last month. Expedia is up 15.5% during the same time and is heading into earnings with an average analyst price target of $337.79 (compared to the current share price of $300.57).
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