Expedia Group, Inc. EXPE is set to unveil its second-quarter 2024 earnings on Aug 8.
The Zacks Consensus Estimate forecasts revenue of $3.54 billion for the quarter, signifying a 5.4% upsurge from the corresponding period last year.
The estimated earnings per share is reported at $3.17, showcasing a 9.7% rise from the same quarter a year ago.
Expedia’s bottom line has outshined the Zacks Consensus Estimate in the last four quarters, with an average beat of 47.34%.
Let’s delve into the factors shaping up the impending announcement.
Performance Factors Overview
Expedia Group’s potential gain from increasing gross bookings, propelled by growing booked room nights and escalating lodging revenues, especially in the hotel sector, are expected to shine in its Q2 2024 results.
The forecast for gross bookings stands at $28.68 billion, reflecting a 5% rise year on year.
The integration of generative AI technology into its services is anticipated to enhance customer experience and drive user engagement during the upcoming quarter.
Strategic investments in B2B-specific innovations are likely to bolster the B2B segment’s performance, with anticipated revenue growth of 14.9% year on year.
The positive traction in Brand Expedia and advertising ventures is poised to fuel Expedia Group’s performance in the second quarter.
Heightened demand in non-U.S. regions is expected to be a revenue booster.
The strengthening of the B2C segment, fueled by substantial investments to expand its global market presence, is expected to drive significant contributions.
However, a slump in the Vrbo business may have a detrimental impact on the company’s top-line growth in Q2.
Lingering challenges in the car business, stemming from persistent pressure on car rental rates, are likely to dampen Expedia’s profitability in the current quarter.
Macroeconomic uncertainties coupled with escalating online travel competition may pose obstacles for the company.
Evaluating the Numbers
As per the Zacks model, a combination of positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) augments the chances of an earnings beat. This is not the scenario for Expedia, with an Earnings ESP of -1.38% and a Zacks Rank #3.
Stocks to Watch
Consider keeping an eye on the following stocks with potential for an earnings surprise this season:
Brinker International EAT boasts an Earnings ESP of +8.02% and currently bears a Zacks Rank #1.
Abercrombie & Fitch ANF flaunts an Earnings ESP of +9.09% and holds a Zacks Rank #1.
Affirm AFRM showcases an Earnings ESP of +19.64% with a Zacks Rank #2.