Expedia Group, Inc. (NASDAQ:EXPE) is a leading online travel company offering a wide range of services, including hotel bookings, flight reservations, and vacation packages. Operating through various brands such as Expedia.com, Hotels.com, and Vrbo, Expedia is a major player in the travel industry, competing with giants like Booking Holdings and TripAdvisor.
As Expedia prepares to release its quarterly earnings on February 6, 2025, analysts estimate the earnings per share (EPS) to be $2.06, with projected revenue of approximately $3.07 billion. This revenue projection marks a 6.45% increase from the same quarter last year, as highlighted by Zacks. The anticipated growth is attributed to increased bookings and expansion in its B2B segment.
Despite the positive outlook, strong competition may challenge Expedia's growth in the fourth quarter. The consensus EPS estimate has been revised downwards by 1.3% over the past 30 days, indicating analysts' adjustments to their initial estimates. Such revisions can significantly influence investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance.
Expedia has a history of exceeding the Zacks Consensus Estimate, with an average surprise of 42.74% over the past four quarters. If the company surpasses the current consensus estimates, it could positively impact the stock's price. Conversely, if the results fall short, the stock may experience a decline. The outcome of the earnings report and subsequent management discussion will be crucial for the stock's future performance.
The company's financial metrics provide additional insights into its valuation and financial health. Expedia's price-to-earnings (P/E) ratio is approximately 20.64, while its price-to-sales ratio stands at about 1.56. The enterprise value to sales ratio is around 1.59, reflecting the company's total valuation relative to its sales. However, the debt-to-equity ratio is notably high at approximately 4.96, indicating a significant reliance on debt financing.
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