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Valued at $22.3 billion by market cap, Expedia Group, Inc. (EXPE) is a leading global online travel platform. Headquartered in Seattle, Washington, the company provides a comprehensive range of travel services, including hotel bookings, airline tickets, vacation packages, and car rentals, catering to both leisure and business travelers. Expedia Group operates a diverse portfolio of brands, such as Expedia, Hotels.com, and Vrbo, enabling seamless travel planning and booking experiences worldwide. The company is set to announce its Q4 earnings after the market closes on Thursday, Feb. 6.
Ahead of the event, analysts expect Expedia to report a profit of $1.39 per share, up 17.8% from $1.18 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one other occasion. Expedia's adjusted EPS of $5.18 per share in the last reported quarter missed the consensus estimate by 4.4%.
For fiscal 2024, analysts expect EXPE to report EPS of $8.76, up 17.7% from $7.44 in fiscal 2023.
Expedia's shares have surged by 19.1% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 25.8% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.2% rally over the same period.
On Nov. 7, Expedia reported its Q3 earnings results, leading to a 3.8% rise in its share price the following day. The company posted revenue of $4.06 billion, missing market expectations by 1.3% but reflecting a 3.3% year-over-year increase. EBITDA reached $1.25 billion, surpassing analyst estimates by 1.6%.
Expedia sustained a strong gross margin of 90.4% and achieved an operating margin improvement of 18.8% from 15.4% in the prior year, while its EBITDA margin remained steady at 30.8%. The company also reported an 8.1 million year-over-year increase in room nights booked, totaling 97.4 million.
The consensus opinion on EXPE stock is moderately optimistic, with an overall “Moderate Buy” rating. Out of 32 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 21 recommend a “Hold.” This consensus is slightly more bullish than a month ago when it had eight “Strong Buy” ratings.
EXPE's average analyst price target is $189.61, indicating a potential upside of 7.2% from the current levels.
