Expedia Group (EXPE) Earnings Preview: What to Expect on November 7th
The travel industry is buzzing as Expedia Group (EXPE) prepares to unveil its quarterly earnings on Thursday, November 7th, 2024. Investors are keenly watching this release, hoping for a strong performance that signals continued growth and positive momentum in the travel sector.
Analyst Expectations and Investor Sentiment
Analysts are forecasting an earnings per share (EPS) of $6.04 for Expedia Group. While meeting or exceeding this estimate is important, investors will also be closely monitoring the company’s guidance for the upcoming quarter. Positive guidance can indicate that Expedia Group is confident in its future prospects and expects continued growth, which can boost investor confidence and potentially lead to a positive stock price reaction.
Looking Back at Past Earnings Performance
In the previous earnings release, Expedia Group surprised investors by exceeding EPS estimates by $0.48. This strong performance led to a 10.21% increase in the share price during the following trading session. Here’s a quick look at Expedia Group’s recent earnings history:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $3.03 | $3.51 | 10.0% |
| Q1 2024 | -$0.24 | $0.21 | -15.0% |
| Q4 2023 | $1.68 | $1.72 | -18.0% |
| Q3 2023 | $4.99 | $5.41 | 19.0% |
Long-Term Shareholder Sentiment and Market Performance
As of November 5th, shares of Expedia Group were trading at $164.87. Over the past 52 weeks, the stock has experienced a strong 51.07% increase. This upward trajectory suggests that long-term shareholders are generally optimistic about the company’s future prospects.
Analysts’ Outlook on Expedia Group
To gain a deeper understanding of market sentiment and expectations within the industry, it’s crucial to consider the views of analysts. A consensus rating of Neutral has been assigned to Expedia Group, based on 20 analyst ratings. The average one-year price target stands at $146.0, indicating a potential downside of 11.45% from current levels.
Peer Comparison: Hyatt Hotels, Norwegian Cruise Line, and MakeMyTrip
To provide context for Expedia Group’s performance, let’s compare it to three other major players in the travel industry: Hyatt Hotels, Norwegian Cruise Line, and MakeMyTrip.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Downside (%) |
|—|—|—|—|
| Hyatt Hotels | Neutral | $161.06 | 2.31% |
| Norwegian Cruise Line | Neutral | $27.08 | 83.57% |
| MakeMyTrip | Buy | $115.5 | 29.94% |
Peer Analysis Summary
Expedia Group’s strong revenue growth and gross profit metrics position it favorably among its peers. However, its net margin and return on assets (ROA) lag behind industry averages, while its return on equity (ROE) is a standout performer.
About Expedia Group
Expedia Group is the world’s second-largest online travel agency by bookings, offering a wide range of services including lodging, air tickets, rental cars, cruises, in-destination experiences, and advertising. The company operates a number of well-known travel booking sites, including Expedia, Hotels.com, Vrbo, and Trivago. Transaction fees from online bookings are the primary source of sales and profits.
Financial Milestones: Expedia Group’s Journey
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Market Capitalization:
Expedia Group’s market capitalization is above the industry average, suggesting a larger size and higher level of investor confidence.*
Revenue Growth:
Expedia Group’s revenue growth rate of 5.96% in the three months ending June 30, 2024, is impressive. However, it is lower than the average growth rate for companies in the Consumer Discretionary sector.*
Net Margin:
Expedia Group’s net margin lags behind industry averages, potentially indicating challenges in cost management.*
Return on Equity (ROE):
Expedia Group’s ROE is a strength, exceeding industry averages and demonstrating efficient use of equity capital.*
Return on Assets (ROA):
Expedia Group’s ROA is below industry standards, indicating potential challenges in asset utilization.*
Debt Management:
Expedia Group’s debt-to-equity ratio is notably higher than the industry average, raising concerns about its reliance on borrowed funds.Key Takeaways
Expedia Group is poised to report earnings on November 7th. Analysts are expecting an EPS of $6.04, and investors will be looking for both earnings beat and positive guidance. Expedia Group’s strong revenue growth and gross profit metrics set it apart from some of its peers, but its net margin and ROA need improvement. Stay tuned for Expedia Group’s earnings announcement and the market’s reaction.
