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Expedia (EXPE) to Report Q4 Earnings: What's in the Offing?
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Expedia Group, Inc. (EXPE - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11.
For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $1.12 billion, suggesting a decline of 59.4% from the year-ago quarter’s reported figure.
Further, the consensus mark for the bottom line stands at a loss of $1.85 per share, whereas it reported earnings of $1.24 in the prior-year quarter.
The company’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, the earnings surprise being 3.33%, on average.
Disruptions in the global travel space, resulting in softness in travel trends, are expected to have remained major overhangs for the company’s bookings in the fourth quarter.
Nevertheless, the gradual recovery in the travel industry, thanks to the reopening of the economies across the world, is expected to have benefited the company in the quarter under review.
Further, latent travel demand is expected to have contributed to the gross bookings of the company.
Most importantly, strong expectations related to the widespread availability of COVID-19 vaccines have created an upside potential in the travel industry. This, in turn, is anticipated to have remained a tailwind for the company.
Additionally, the company’s cost-control initiatives are likely to have aided in countering the coronavirus-induced disruptions.
Further, centralizing cloud management across Expedia’s platform is expected to have accelerated the cloud saving rate in the quarter under review.
Moreover, the company’s strong global lodging portfolio and its growing efforts to strengthen its presence in the domestic regions are likely to have benefited the to-be-reported quarter’s results.
However, sluggishness in the company’s trivago segment is anticipated to have impacted its top line negatively.
Further, the impacts of weakening momentum across retail and B2B segments of the company are expected to get reflected in the fourth-quarter results.
What Our Model Says
Our proven model does not conclusively predict 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. But that’s not the case here as elaborated below. 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 -0.77% and a Zacks Rank #4, currently.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat this quarter:
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +2.51% and a Zacks Rank of 2.
Adobe Inc. (ADBE - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank of 3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Expedia (EXPE) to Report Q4 Earnings: What's in the Offing?
Expedia Group, Inc. (EXPE - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11.
For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $1.12 billion, suggesting a decline of 59.4% from the year-ago quarter’s reported figure.
Further, the consensus mark for the bottom line stands at a loss of $1.85 per share, whereas it reported earnings of $1.24 in the prior-year quarter.
The company’s bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same twice, the earnings surprise being 3.33%, on average.
Expedia Group, Inc. Price and EPS Surprise
Expedia Group, Inc. price-eps-surprise | Expedia Group, Inc. Quote
Key Factors to Consider
Disruptions in the global travel space, resulting in softness in travel trends, are expected to have remained major overhangs for the company’s bookings in the fourth quarter.
Nevertheless, the gradual recovery in the travel industry, thanks to the reopening of the economies across the world, is expected to have benefited the company in the quarter under review.
Further, latent travel demand is expected to have contributed to the gross bookings of the company.
Most importantly, strong expectations related to the widespread availability of COVID-19 vaccines have created an upside potential in the travel industry. This, in turn, is anticipated to have remained a tailwind for the company.
Additionally, the company’s cost-control initiatives are likely to have aided in countering the coronavirus-induced disruptions.
Further, centralizing cloud management across Expedia’s platform is expected to have accelerated the cloud saving rate in the quarter under review.
Moreover, the company’s strong global lodging portfolio and its growing efforts to strengthen its presence in the domestic regions are likely to have benefited the to-be-reported quarter’s results.
However, sluggishness in the company’s trivago segment is anticipated to have impacted its top line negatively.
Further, the impacts of weakening momentum across retail and B2B segments of the company are expected to get reflected in the fourth-quarter results.
What Our Model Says
Our proven model does not conclusively predict 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. But that’s not the case here as elaborated below. 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 -0.77% and a Zacks Rank #4, currently.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat this quarter:
CrowdStrike Holdings Inc. (CRWD - Free Report) presently has an Earnings ESP of +57.75% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +2.51% and a Zacks Rank of 2.
Adobe Inc. (ADBE - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank of 3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>