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Expedia (EXPE) to Report Q1 Earnings: What's in the Offing?

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Expedia Group, Inc. (EXPE - Free Report) is scheduled to report first-quarter 2021 results on May 2.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.27 billion, suggesting growth of 81.9% from the year-ago reported figure.

Further, the consensus mark for the bottom line stands at a loss of 22 cents per share, which has gone down by 4.76% in the past seven days. The company incurred a loss of $2.02 per share in the year-ago quarter.

It surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with an earnings surprise of 24.3%, 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

Key Factors to Note

Expedia’s first-quarter performance is likely to have been driven by continuous recovery across all lines of business, owing to the increasing travel resiliency of people.

Strengthening momentum across the company’s domestic and international businesses is expected to have aided the quarterly performance.

Further, optimism regarding the ongoing vaccination drive is anticipated to have driven its bookings in the quarter under review.

Strength of Expedia Group Media Solutions and trivago is likely to have contributed well to Advertising & Media and Other revenues in the to-be-reported quarter.

Expedia has been witnessing an increase in revenues per room night. This is likely to have continued in the quarter under discussion, given the growing confidence among people regarding travel.

Further, the company’s deepening focus on brand marketing and maintaining long-term customer relationships might have continued aiding EXPE’s quarterly performance.

Yet, uncertainties related to the coronavirus pandemic prevailing in the global travel industry are expected to have been a concern for the company.

Further, increasing expenses related to sales and marketing and technology and content are likely to have impacted the quarterly performance negatively.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of -119.9% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.

HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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