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What's in the Cards for Expedia Group (EXPE) in Q2 Earnings?

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Expedia Group, Inc. (EXPE - Free Report) is scheduled to report its second-quarter 2023 results on Aug 3.

For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $3.36 billion, suggesting growth of 5.49% from the year-ago quarter’s reported figure.

Further, the consensus mark for earnings stands at $2.31 per share, suggesting growth of 17.86% from the figure reported in the year-ago quarter.

Let’s see how things have shaped up for the upcoming announcement.

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 second-quarter performance is likely to have benefited from increasing bookings, owing to growing travel demand among users.

Strong consumer demand in international and big city bookings and rising room nights stayed across hotels are expected to have had a positive influence on lodging gross bookings in the quarter to be reported.

Our model suggests lodging revenues of $2.57 billion, up 7.3% from the figure reported in the year-ago quarter.

Further, robust marketing strategies are expected to have driven gross bookings and increased loyalty membership and app usage.

Our model estimate for total gross bookings is pegged at $31.86 billion, indicating 21.9% year-over-year growth.

Moreover, EXPE’s strong efforts to strengthen its platform are expected to have driven growth in its B2C and B2B businesses in the quarter to be reported.

Strong travel market, contributions from a series of acquisitions and management execution are expected to have aided the B2C segment’s top line in the quarter under discussion.

Our model estimate for the Retail/B2C segment is pegged at $2.47 billion, indicating 2.2% year-over-year growth.

EXPE’s consistent investments in technology are helping travel companies boost sales, and, in turn, are expected to have driven the B2B segment’s revenue in the second quarter.

Moreover, continued investment in businesses like SoFi, Hilton and Accor is also expected to benefit the B2B revenue growth in the upcoming quarter.

Our model suggests B2B segment revenues of $739.3 million, up 13.7% from the figure reported in the year-ago quarter.

However, the impacts of ongoing geopolitical tensions, macroeconomic uncertainties and rising inflation are likely to get reflected in the upcoming quarterly results.

What Our Model Says

According to the Zacks model, 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.

Expedia has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pegged at 41 cents per share.

CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2 at present.

CACI is scheduled to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting an increase of 6.83% from the prior-year quarter’s reported figure.

DigitalOcean (DOCN - Free Report) has an Earnings ESP of +4.03% and a Zacks Rank #3 at present.

DOCN is scheduled to release its second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 40 cents per share, suggesting a jump from 20 cents per share reported in the prior-year quarter.

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

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