Core Viewpoint - Expedia Group (EXPE) is expected to report first-quarter 2025 results on May 8, with revenues estimated at $3.03 billion, reflecting a 4.76% increase year-over-year, and earnings per share projected at 42 cents, indicating a 100% increase from the previous year [1][4]. Financial Performance - The Zacks Consensus Estimate for EXPE's first-quarter 2025 revenues is $3.03 billion, a 4.76% increase from the prior year's quarter [1]. - The earnings consensus is 42 cents per share, revised down by 2 cents in the last 30 days, but still suggests a 100% increase year-over-year [1]. Historical Performance - EXPE has exceeded the Zacks Consensus Estimate for earnings in the last four quarters, with an average surprise of 45.86% [2]. Growth Factors - The company's performance is anticipated to be influenced by international demand, strategic investments, and cost discipline [4]. - Gross bookings are projected to grow by 4% to 6%, with revenue growth expected between 3% to 5%, excluding a two-point foreign exchange headwind and the Easter shift [5]. - Underlying growth, when excluding these factors, is expected to be between 7% to 9% [5]. Segment Performance - Vrbo is likely to continue its growth momentum, supported by expanded urban inventory and improved supply quality [6]. - Brand Expedia is expected to benefit from merchandising actions in air and package products, driving incremental bookings without additional marketing costs [6]. - The B2B segment, which accounted for 27% of total bookings in 2024, is expected to remain strong, particularly in the APAC region [7]. - Advertising revenues, which grew by 25% in the fourth quarter, are anticipated to continue being a significant contributor to top-line growth [8]. Profitability Metrics - Adjusted EBITDA margins for the first quarter are expected to remain flat to slightly up year-over-year, reflecting sustained overhead and marketing efficiency [9]. - Cost-saving actions taken in 2024 are expected to support profitability despite seasonal and foreign exchange pressures [9]. Earnings Outlook - According to the Zacks model, EXPE has a positive Earnings ESP of +14.86% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [10].
Expedia Gears Up to Post Q1 Earnings: What's in Store for the Stock?