Exploring Expedia Group's Earnings Expectations

Expedia Group EXPE is preparing to release its quarterly earnings on Thursday, 2024-11-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Expedia Group to report an earnings per share (EPS) of $6.04.

Anticipation surrounds Expedia Group's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

In the previous earnings release, the company beat EPS by $0.48, leading to a 10.21% increase in the share price the following trading session.

Here's a look at Expedia Group's past performance and the resulting price change:

Performance of Expedia Group Shares

Shares of Expedia Group were trading at $164.87 as of November 05. Over the last 52-week period, shares are up 51.07%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Expedia Group

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Expedia Group.

Analysts have provided Expedia Group with 20 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $146.0, suggesting a potential 11.45% downside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Hyatt Hotels, Norwegian Cruise Line and MakeMyTrip, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Hyatt Hotels is maintaining an Neutral status according to analysts, with an average 1-year price target of $161.06, indicating a potential 2.31% downside.
• As per analysts' assessments, Norwegian Cruise Line is favoring an Neutral trajectory, with an average 1-year price target of $27.08, suggesting a potential 83.57% downside.
• For MakeMyTrip, analysts project an Buy trajectory, with an average 1-year price target of $115.5, indicating a potential 29.94% downside.

Peer Analysis Summary

In the peer analysis summary, key metrics for Hyatt Hotels, Norwegian Cruise Line and MakeMyTrip are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Expedia Group ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

About Expedia Group

Expedia is the world's second-largest online travel agency by bookings, offering services for lodging (80% of total 2023 sales), air tickets (3%), rental cars, cruises, in-destination, and other (11%), and advertising revenue (6%). Expedia operates a number of branded travel booking sites, but its three core online travel agency brands are Expedia, Hotels.com, and Vrbo. It also has a metasearch brand, Trivago. Transaction fees for online bookings account for the bulk of sales and profits.

Financial Milestones: Expedia Group's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Expedia Group's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.96%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Expedia Group's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 10.85%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 43.4%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Expedia Group's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.52%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Expedia Group's debt-to-equity ratio stands notably higher than the industry average, reaching 7.37. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Expedia Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.