Online travel agency Expedia (NASDAQ: EXPE) will be reporting earnings tomorrow after the bell. Here’s what to expect.
Expedia missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $4.06 billion, up 3.3% year on year. It was a slower quarter for the company. It reported 97.4 million nights booked, up 9.1% year on year.
Is Expedia a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Expedia’s revenue to grow 6.5% year on year to $3.08 billion, slowing from the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Expedia has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Expedia’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 11.8%, meeting analysts’ expectations, and Snap reported revenues up 14.4%, topping estimates by 0.6%.
Read our full analysis of Alphabet’s results here and Snap’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 5% on average over the last month. Expedia is down 7.9% during the same time and is heading into earnings with an average analyst price target of $192.14 (compared to the current share price of $169).
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