Expedia (EXPE) Reports Q3: Everything You Need To Know Ahead Of Earnings

Online travel agency Expedia (NASDAQ:EXPE) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

Expedia met analysts’ revenue expectations last quarter, reporting revenues of $3.56 billion, up 6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but slow revenue growth. It reported 98.9 million nights booked, up 10.3% 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 4.7% year on year to $4.11 billion, slowing from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.12 per share.

The majority of analysts covering the company have 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 twice 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. Booking delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 4.8%, and EverQuote reported revenues up 163%, topping estimates by 3%. Booking traded up 4.5% following the results while EverQuote was also up 3.9%.

Read our full analysis of Booking’s results here and EverQuote’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 8.6% on average over the last month. Expedia is up 7.1% during the same time and is heading into earnings with an average analyst price target of $153.88 (compared to the current share price of $162.69).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.