Expedia Group, Inc. EXPE is scheduled to report its fourth-quarter 2023 results on Feb 8.
For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $2.88 billion, suggesting growth of 10% from the year-ago quarter’s reported figure.
Further, the consensus mark for earnings stands at $1.67 per share, suggesting growth of 32.5% 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-eps-surprise | Expedia Group, Inc. Quote
Key Factors to Note
Solid momentum in booked room nights is expected to have driven growth in Expedia’s gross bookings during the fourth quarter. Also, accelerating lodging and air revenues are expected to have contributed well.
The Zacks Consensus Estimate for gross bookings is pinned at $21.87 billion, suggesting growth of 6.6% year over year.
Strong momentum across B2B and B2C segments, owing to the increasing travel demand, are likely to have been key growth catalysts for the company during the fourth quarter.
Further, robust core technology, AI, machine learning, service and payment strategies are expected to have contributed well to the B2B segment’s performance in the quarter under review.
Growing investments in loyalty and app members and strengthening hotel business are expected to have driven growth in the B2C segment during the to-be-reported quarter.
The consensus mark for B2B revenues stands at $784.90 million, indicating growth of 16.1% from the year-ago reported figure.
The consensus estimate suggests B2C segment revenues of $2.03 billion, up 8.1% year over year.
However, the uncertain geopolitical environment is expected to have acted as a major headwind for the company in the fourth quarter.
Weakness in the Vrbo business due to the demand shift toward more urban areas is likely to have been another negative.
Sluggishness across insurance and car businesses is expected to have hurt EXPE’s profitability in the quarter under review.
What Our Model Says
Per 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. That’s exactly the case here.
Expedia currently has an Earnings ESP of +5.00% and a Zacks Rank #3. 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 companies worth considering from the same space, as our model shows that these, too, have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
BlackLine BL has an Earnings ESP of +2.62% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackLine is scheduled to release fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for BL’s earnings is pegged at 55 cents per share, suggesting a jump of 57.1% from the prior-year quarter.
Airbnb ABNB has an Earnings ESP of +4.73% and a Zacks Rank #3 at present.
Airbnb is set to announce fourth-quarter 2023 results on Feb 13. The Zacks Consensus Estimate for ABNB’s earnings is pinned at 69 cents per share, suggesting a growth of 43.8% from the year-ago quarter.
Twilio TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2 at present.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. The Zacks Consensus Estimate for TWLO’s earnings is pinned at 57 cents per share, indicating growth from the year-ago quarter’s figure of 22 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
BlackLine (BL) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
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