We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Expedia (EXPE) Q4 Loss Wider Than Expected, Revenues Down Y/Y
Read MoreHide Full Article
Expedia Group, Inc. (EXPE - Free Report) reported fourth-quarter 2020 adjusted loss of $2.24 per share, wider than the Zacks Consensus Estimate of a loss of $1.93. Further, the bottom line is wider than the prior quarter’s loss of 22 cents per share. Notably, the company reported earnings of $1.24 per share in the year-ago quarter.
Revenues of $920 million missed the Zacks Consensus Estimate of $1.1 billion. Further, the top line declined 38.8% sequentially and 67% year over year.
Disruptions caused by the ongoing pandemic remained a major woe. Increasing number of COVID-19 cases worldwide resulting in the shutdown of several travel markets hurt the performance of the company in the fourth quarter.
Expedia’s gross bookings were $7.6 billion, which fell 12.3% from the previous quarter and67% year over year. Further, the figure missed the Zacks Consensus Estimate of $7.7 billion.
The stock has returned 35.6% over a year, underperforming the industry’s growth of 42.8%.
Headwinds in the global travel industry due to the coronavirus outbreak are major concerns for the company in the days ahead.
Nevertheless, optimism regarding the widespread availability of coronavirus vaccines remains a tailwind.
Further, the improving performance of Vrbo remains a positive. The growing momentum of Vrbo in room nights stayed is likely to contributed well in the near term. Additionally, proper execution of the company’s cost-saving strategies remained a tailwind.
Revenues by Segment
Retail: The company generated $720 million in revenues (76.3% of total revenues) from the segment, which declined 64% year over year.
B2B: The segment yielded revenues of $186 million (20.2% of total revenues), which fell 71% from the year-ago quarter.
trivago: Revenues from the segment totaled $38 million (4.1% of revenues), down 78% year over year.
Revenues by Business Model
The Merchant model generated revenues of $521 million (56.6% of revenues), down 67% year over year. Merchant gross bookings were $4.2 billion, down 63% from the prior-year quarter.
The Agency division generated revenues of $271 million (29.5% of revenues), slumping 67% from the prior-year quarter. Agency gross bookings were $3.4 billion, down 72% year over year.
Advertising & Media and other generated $128 million of revenues (13.9% of the top line), decreasing 62% from the year-ago quarter. This can primarily be attributed to sluggishness in Expedia Group Media Solutions and trivago.
Revenues by Geography
Expedia generated $698 million revenues (75.9% of total revenues) from domestic regions, down 56% from the prior-year quarter.
Further, revenues generated from international regions totalled $222 million (24.1% of revenues), down 81% on a year-over-year basis.
Revenues by Product Line
Lodging revenues, which accounted for 86% of total revenues, declined 58% from the prior-year quarter. Although the company witnessed a 6% rise in revenues per room night, stayed room nights declined 61%.
Air revenues accounted for 4% of revenues. The metric was down 80% year over year. Notably, air tickets soldand revenue per ticket plunged 69% and 35% year over year, respectively.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA was ($160) million in the reported quarter compared with $478 million in the year-ago quarter.
Further, adjusted selling and marketing expenses were $500 million, down 60.2% year over year. Additionally, adjusted general and administrative expenses were $105 million, down 42.3% year over year. Adjusted technology and content expenses were $207 million, down 31.7% from the year-ago quarter.
The company reported fourth-quarter operating loss of $463 million against the operating income of $160 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2020, cash and cash equivalents were $3.4 billion, down from $4.3 billion as of Sep 30, 2020. Short-term investments totaled $24 million, up from $23 million in the previous quarter.
Additionally, long-term debt was $8.2 billion at the end of the fourth quarter compared with $8.1 billion at the end of the third quarter.
Further, Expedia utilized $385 million of cash in operations in the reported quarter compared to $819 million of cash used in operations in the last quarter. Moreover, free cash flow was ($513) million in the fourth quarter.
Long-term earnings growth rates for JD.com, Target and Ross Stores are pegged at 51.2%, 8.49% and 10%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Expedia (EXPE) Q4 Loss Wider Than Expected, Revenues Down Y/Y
Expedia Group, Inc. (EXPE - Free Report) reported fourth-quarter 2020 adjusted loss of $2.24 per share, wider than the Zacks Consensus Estimate of a loss of $1.93. Further, the bottom line is wider than the prior quarter’s loss of 22 cents per share. Notably, the company reported earnings of $1.24 per share in the year-ago quarter.
Revenues of $920 million missed the Zacks Consensus Estimate of $1.1 billion. Further, the top line declined 38.8% sequentially and 67% year over year.
Disruptions caused by the ongoing pandemic remained a major woe. Increasing number of COVID-19 cases worldwide resulting in the shutdown of several travel markets hurt the performance of the company in the fourth quarter.
Expedia’s gross bookings were $7.6 billion, which fell 12.3% from the previous quarter and67% year over year. Further, the figure missed the Zacks Consensus Estimate of $7.7 billion.
The stock has returned 35.6% over a year, underperforming the industry’s growth of 42.8%.
Headwinds in the global travel industry due to the coronavirus outbreak are major concerns for the company in the days ahead.
Nevertheless, optimism regarding the widespread availability of coronavirus vaccines remains a tailwind.
Further, the improving performance of Vrbo remains a positive. The growing momentum of Vrbo in room nights stayed is likely to contributed well in the near term. Additionally, proper execution of the company’s cost-saving strategies remained a tailwind.
Revenues by Segment
Retail: The company generated $720 million in revenues (76.3% of total revenues) from the segment, which declined 64% year over year.
B2B: The segment yielded revenues of $186 million (20.2% of total revenues), which fell 71% from the year-ago quarter.
trivago: Revenues from the segment totaled $38 million (4.1% of revenues), down 78% year over year.
Revenues by Business Model
The Merchant model generated revenues of $521 million (56.6% of revenues), down 67% year over year. Merchant gross bookings were $4.2 billion, down 63% from the prior-year quarter.
The Agency division generated revenues of $271 million (29.5% of revenues), slumping 67% from the prior-year quarter. Agency gross bookings were $3.4 billion, down 72% year over year.
Advertising & Media and other generated $128 million of revenues (13.9% of the top line), decreasing 62% from the year-ago quarter. This can primarily be attributed to sluggishness in Expedia Group Media Solutions and trivago.
Revenues by Geography
Expedia generated $698 million revenues (75.9% of total revenues) from domestic regions, down 56% from the prior-year quarter.
Further, revenues generated from international regions totalled $222 million (24.1% of revenues), down 81% on a year-over-year basis.
Revenues by Product Line
Lodging revenues, which accounted for 86% of total revenues, declined 58% from the prior-year quarter. Although the company witnessed a 6% rise in revenues per room night, stayed room nights declined 61%.
Air revenues accounted for 4% of revenues. The metric was down 80% year over year. Notably, air tickets soldand revenue per ticket plunged 69% and 35% year over year, respectively.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
Operating Details
Adjusted EBITDA was ($160) million in the reported quarter compared with $478 million in the year-ago quarter.
Further, adjusted selling and marketing expenses were $500 million, down 60.2% year over year. Additionally, adjusted general and administrative expenses were $105 million, down 42.3% year over year. Adjusted technology and content expenses were $207 million, down 31.7% from the year-ago quarter.
The company reported fourth-quarter operating loss of $463 million against the operating income of $160 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2020, cash and cash equivalents were $3.4 billion, down from $4.3 billion as of Sep 30, 2020. Short-term investments totaled $24 million, up from $23 million in the previous quarter.
Additionally, long-term debt was $8.2 billion at the end of the fourth quarter compared with $8.1 billion at the end of the third quarter.
Further, Expedia utilized $385 million of cash in operations in the reported quarter compared to $819 million of cash used in operations in the last quarter. Moreover, free cash flow was ($513) million in the fourth quarter.
Zacks Rank & Stocks to Consider
Expedia currently carries a Zacks Rank #4 (Sell).
JD.com, Inc. (JD - Free Report) , Target Corporation (TGT - Free Report) and Ross Stores, Inc. (ROST - Free Report) are some better-ranked stocks in the broader Retail-Wholesale sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for JD.com, Target and Ross Stores are pegged at 51.2%, 8.49% and 10%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>