For the quarter ended September 2025, Expedia (EXPE) reported revenue of $4.41 billion, up 8.7% over the same period last year. EPS came in at $7.57, compared to $6.13 in the year-ago quarter.The reported revenue represents a surprise of +2.61% over the Zacks Consensus Estimate of $4.3 billion. With the consensus EPS estimate being $7.21, the EPS surprise was +4.99%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

Key Takeaways Expedia is set to report Q3 2025 earnings on Nov. 6, with revenues expected to rise 5.9% year over year.EXPE raised full-year guidance to 3-5% growth after observing improved travel demand momentum since July.The company has an Earnings ESP of 8.44% and Zacks Rank #3, suggesting potential for an earnings beat.Expedia Group (EXPE) is scheduled to report third-quarter 2025 results on Nov. 6.The Zacks Consensus Estimate for EXPE’s third-quarter 2025 revenues is pegged at $4.3 billion, indicating ...

Core Viewpoint - The holiday travel season is expected to boost travel and entertainment spending by 1%, contrasting with a decline in other spending areas, presenting potential investment opportunities in travel stocks [1]. Group 1: Expedia Group - Expedia Group (EXPE) has shown a total return of 129.6% over the last three years, with a year-to-date increase of over 16% and more than 24% in the last three months [2][4]. - The stock is currently trading about 4% above its consensus price target, but bullish price targets of $240 and $250 from Mizuho and BTIG Research suggest further upside potential [3]. - With a forward P/E ratio of around 17x and expected earnings growth of 20% in the next 12 months, the stock is considered undervalued [4]. Group 2: Royal Caribbean - Royal Caribbean (RCL) has delivered a total return of over 765% in the past three years and is up 37% in 2025, driven by strong travel demand and a repaired balance sheet [5][6]. - Despite a recent 12% decline in shares due to profit-taking, analyst sentiment remains bullish with several price targets near or above $400 [6]. - The company has raised its dividend by 25% this year, enhancing its appeal to shareholders as it prepares for the holiday travel season [7]. Group 3: Southwest Airlines - Southwest Airlines (LUV) is projected to experience over 50% earnings growth in the next 12 months, making its forward P/E ratio of 20x noteworthy [9]. - The airline is expected to benefit from rising jet fuel costs and lower interest rates, which may stimulate demand for low-cost domestic travel [10]. - Although LUV stock is down about 3.5% in 2025, upcoming earnings reports and holiday travel demand could present an attractive entry point for investors [11].

Core Insights - Expedia Group (EXPE) reported first-quarter 2025 adjusted earnings of 40 cents per share, missing the Zacks Consensus Estimate by 4.76%, but showing a year-over-year increase of 90.5% [1] - Revenues for the quarter were $2.98 billion, a 3.4% year-over-year increase, but also missed the Zacks Consensus Estimate by 1.27% [2] - Total gross bookings rose to $31.5 billion, reflecting a 4% year-over-year increase, with B2B bookings growing significantly [3] Financial Performance - Adjusted EBITDA for the quarter was $296 million, up 16.1% year over year [4] - Adjusted EBIT decreased 65% year over year to negative $21 million [5] - Cash and cash equivalents increased to $6.1 billion from $4.5 billion since the end of 2024, while long-term debt decreased to $4.465 billion [6] Operational Highlights - B2B revenues increased by 13.7% year over year to $947 million, while B2C revenues decreased by 1.5% to $1.96 billion [2] - Lodging gross bookings grew 5% year over year to $23.03 billion, with hotel bookings climbing 6% [3] - Booked room nights rose 6% from the previous year to 107.7 million [3] Future Guidance - For Q2 2025, EXPE expects gross bookings growth in the range of 2-4% and revenue growth of 3-5% [7] - The company anticipates adjusted EBITDA margins to increase by 75-100 basis points year over year [7] - For the full year 2025, EXPE projects gross bookings and revenue growth in the 2% to 4% range [7]