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What's in the Cards for Expedia Group's (EXPE) Q1 Earnings?

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Expedia Group, Inc. (EXPE - Free Report) is scheduled to report first-quarter 2019 results on May 2.

The company outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering average positive earnings surprise of 31.61%.

Expedia, which posted earnings of $1.24 per share in the last reported quarter, delivered a positive surprise of 15.89%.

Revenues increased 10.3% year over year but declined 21.9% on a sequential basis to $2.56 billion. Notably, the figure outpaced the Zacks Consensus Estimate of $2.55 billion.

Robust performance of HomeAway, Brand Expedia, Expedia Partner Solutions and Hotels.com, improving stayed nights, as well as expanding lodging portfolio should drive the upcoming results. Moreover, the company continues to benefit from strong segmental performance, which will help the stock to perform well.

Let’s see how things are shaping up for the upcoming quarterly results.

Core OTA

Strength in growing stayed room night number and overall gross bookings will likely drive the segment’s results in the to-be-reported quarter as well. The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $2.07 billion.

HomeAway

Rising conversion rates and strong focus on improvisation of instant book ability are anticipated to drive its top line in the soon-to-be-reported quarter. Further, a consistent increase in stayed room nights and property nights is likely to contribute to HomeAway listings in the first quarter. The Zacks Consensus Estimate for revenues is pegged at $274 million.

Egencia

The segment is expected to perform well in the to-be-reported quarter as well, with the ramp up of Egencia's sales force and growing clientele. Further, Egencia’s offering of differentiated products will likely sustain its momentum in the corporate travel market. The Zacks Consensus Estimate for the segment’s revenues is pegged at $166 million.

Trivago

Expedia’s continued efforts to increase alternative accommodation listings on the trivago platform are expected to aid the top line. However, unfavorable changes in marketplaces could impact this segment. The Zacks Consensus Estimate for first-quarter revenues of the segment is pegged at $276 million.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Notably, Expedia has the right mix, as you will see below.

It currently has a Zacks Rank #3 and an Earnings ESP of +9.01%.

Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other stocks that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Teleflex Incorporated (TFX - Free Report) has an Earnings ESP of +1.65% and holds a Zacks Rank #2.

Square, Inc. (SQ - Free Report) has an Earnings ESP of +5.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Triton International Limited has an Earnings ESP of +2.51% and holds a Zacks Rank #3.

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