What's in the Cards for Expedia Group's (EXPE) Q2 Earnings?

Expedia Group, Inc. EXPE is scheduled to report second-quarter 2019 results on Jul 30.

The company outpaced the Zacks Consensus Estimate in all the trailing four quarters, with the average being 26.92%.

In the last reported quarter, revenues increased 4% year over year and 1.9% on a sequential basis to $2.61 billion. However, the figure missed the Zacks Consensus Estimate of $2.69 billion.

Robust performance of Vrbo, which was previously known as HomeAway, Brand Expedia and Expedia Partner Solutions should drive the upcoming results. Moreover, strong segmental performance will likely 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.

The Zacks Consensus Estimate for the segment’s revenues is currently pegged at $2.47 billion.

Vrbo

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 listings on Vrbo in the quarter.

The Zacks Consensus Estimate for revenues is pegged at $334 million.

Egencia

The segment is expected to perform well in the to-be-reported quarter, backed by 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 served by the company could affect this segment.

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. Expedia has the right mix, as you will see below.

It currently has a Zacks Rank #2 and an Earnings ESP of +3.21%.

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.

Amazon.com, Inc. AMZN has an Earnings ESP of +4.01% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Facebook, Inc. FB has an Earnings ESP of +0.61% and a Zacks Rank #2.

Thermo Fisher Scientific Inc. TMO has an Earnings ESP of +0.54% and holds a Zacks Rank #3.

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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
 
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