Expedia Earnings Estimates Are Falling

Shares of Expedia Inc EXPE fell more than 2 percent on Thursday morning, as the company readies to report its first quarter financial results after the market closes.

According to Estimize, both the crowd and the Street expect to see a marked year-over-year and quarter-over-quarter decline in EPS. In the same quarter last year, the company recorded earnings of $0.16 per share; in the last quarter, they reported EPS of $0.86.

For the first quarter of 2015, experts model consensus EPS $0.07 on revenue of $1.345 billion, and the crowd projects EPS of $0.12 on revenue of $1.355 billion.

The graph above shows Expedia’s history of estimates versus actual earnings; there is no clear pattern.

It is also possible to check out how estimates have evolved over the quarter.

As the chart above shows, Wall Street estimates have been consistently falling since January, hitting the current level in early-March. Main Street has also been increasingly bearish on results, and estimates now stand at their lowest point in the quarter.

The Report Every Expedia Investor Needs To See                

In a recent report, analysts at Cowen updated their already bullish  thesis on Expedia, following the announcement of the planned acquisition of Orbitz Worldwide, Inc. OWW.

A recent Benzinga article reads, “Cowen analysts value Core Expedia and Egencia alone at $100 per share. In addition, they see upside in the potential Orbitz deal and hold an overall positive outlook for the online travel industry. Cowen has an Outperform rating on Expedia and a $115 target for the stock.”