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

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Expedia Group, Inc. (EXPE - Free Report) is scheduled to report second-quarter 2020 results on Jul 30.

For second-quarter 2020, the Zacks Consensus Estimate for revenues is pegged at $552.04 million, suggesting a decline of 82.5% from the year-ago quarter.

Further, the consensus mark for the bottom line stands at a loss of $3.45 per share against an earnings of $1.47 per share reported in the prior-year quarter.

The company has surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed the same twice. It has a trailing four-quarter negative earnings surprise of 12.48%, on average.

Expedia Group, Inc. Price and EPS Surprise

Expedia Group, Inc. Price and EPS Surprise

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

Factors to Note

The gradual reopening of the economy post coronavirus-led lockdown, which is improving the global travel trend, is likely to have benefited the company’s second-quarter performance.

Recovery in Expedia’s gross bookings for core lodging courtesy of robust Vrbo might have contributed to the to-be-reported quarter’s performance. Notably, Vrbo, which has witnessed year-over-year growth in bookings May and June as per the business update provided by company, remains a major positive.

Additionally, rising demand for whole-home and private accommodations amid the ongoing pandemic situation might have acted as a tailwind in the to-be-reported quarter.

Further, Expedia’s strong supply acquisition efforts, strategic investments and product innovation may get reflected in the second-quarter results.

Also, the company’s expanding global lodging portfolio and growing efforts toward strengthening presence in domestic regions might have benefited the performance in the quarter to be reported.

Additionally, Expedia’s strengthening marketing efforts is expected to have aided the company’s second-quarter performance.

Also, strong progress on vertical agent and self-service tools is expected to have driven customer momentum in the to-be-reported quarter.

The company’s cost-cutting strategies are likely to have contributed the second-quarter performance. Centralizing cloud management across Expedia’s platform may have accelerated the cloud saving rate during the quarter under review.

However, headwinds in the global travel industry owing to the pandemic remained primary concerns. Further, sluggishness in the company’s trivago segment is likely to have weighed on the to-be-reported quarter’s performance.

What Our Model Says

Our proven model conclusively predicts anearnings 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. But that’s not 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 +12.98% and a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks you may consider, as our proven model shows that these too have the right combination of elements to post an earnings beat this quarter.

JD.com, Inc. (JD - Free Report) has an Earnings ESP of +13.79% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2.

Wayfair, Inc. (W - Free Report) has an Earnings ESP of +43.47% and a Zacks Rank of 3.

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Expedia Group, Inc. (EXPE) - free report >>

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