Core Viewpoint - Expedia's stock has recently underperformed, returning -13.5% over the past month compared to the S&P 500's +1.3% and the Internet - Commerce industry's +3.3% [1] Earnings Estimate Revisions - The consensus earnings estimate for the current quarter is $3.18 per share, reflecting a year-over-year increase of +10%, but has decreased by -11% over the last 30 days [3] - The fiscal year earnings estimate is $11.86, indicating a +22.4% year-over-year change, with a -4.1% revision in the last month [3] - For the next fiscal year, the earnings estimate is $14.92, showing a +25.8% change from the previous year, with a -2.8% adjustment recently [3] - Expedia holds a Zacks Rank 3 (Hold) due to the recent changes in earnings estimates and other related factors [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $3.55 billion, indicating a +5.8% year-over-year change [6] - For the current fiscal year, the sales estimate is $13.8 billion (+7.5%), and for the next fiscal year, it is $14.88 billion (+7.9%) [6] Last Reported Results and Surprise History - In the last reported quarter, Expedia generated revenues of $2.89 billion, a +8.4% year-over-year increase, and an EPS of $0.21 compared to -$0.20 a year ago [7] - The reported revenues exceeded the Zacks Consensus Estimate by +3.1%, and the EPS surprise was +156.76% [7] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times [7] Valuation - Expedia is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [10] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [8][9] Conclusion - The information presented may assist in evaluating the market interest surrounding Expedia, with a Zacks Rank 3 suggesting it may perform in line with the broader market in the near term [11]
Here is What to Know Beyond Why Expedia Group, Inc. (EXPE) is a Trending Stock