Expedia (EXPE) Gears Up for Q2 Earnings: What's in Store?

Expedia, Inc. EXPE is set to report second-quarter 2018 results on Jul 26, after market close. Last quarter, the company delivered a positive earnings surprise of 43.8%.

The company missed estimates in three of the trailing four quarters, with an average positive surprise of 2.45%.

We observe that shares of Expedia have lost 18.8% in the past 12 months against the industry’s 40.4% rally.

Core OTA

In the first quarter, this segment’s revenues increased 3.2% sequentially and 13% year over year to $1.92 billion. Stronger-than-expected room night growth will continue to drive results in this segment. The Zacks Consensus Estimate for this segment’s revenues is currently pegged at $2.22 billion.

Trivago

Revenues from Trivago increased 12% year over year to $319 million. For the soon-to-be-reported quarter, the company expects solid momentum in room-night growth in all the key regions. The Zacks Consensus Estimate for this segment’s revenues is pegged at 328 million.

HomeAway

In the first quarter, HomeAway revenues increased 26% from the year-ago quarter and 21.2% sequentially to $234 million. HomeAway room nights stayed rose 36% from the prior-year quarter. HomeAway conversion rates are strong and have been increasing year over year. Consistent increase in stayed room night and property night could slightly contribute to HomeAway’s growth. The Zacks Consensus Estimate for this segment’s revenues is pegged at $288 million.

Egencia

In the first quarter, Egencia increased 23% on a year-over-year basis to $151 million. It is expected to perform well in the to-be-reported quarter, driven by the ramp up of Egencia's sales force and increased client acquisitions. The Zacks Consensus Estimate for this segment’s revenues is pegged at $157 million.

What Our Model Says

Currently, Expedia has a Zacks Rank #2 (Buy) and an Earnings ESP of +9.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided, especially if they have a negative Earnings ESP.

Expedia, Inc. Price and EPS Surprise

 

Expedia, Inc. Price and EPS Surprise | Expedia, Inc. Quote

Other Stocks to Consider

Here are a couple of other stocks that you may also want to consider as our model shows that these have the right combination of elements to post a positive earnings surprise in the quarter to be reported.

Twitter TWTR has an Earnings ESP of +7.06% and sportsa Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Texas Instruments Incorporated TXN has an Earnings ESP of +0.96% and a Zacks Rank #2.

Lockheed Martin Corporation LMT has an Earnings ESP of +0.14% and a Zacks Rank #2.

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