Market Overview

A Preview Of Expedia Group's Earnings

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On Wednesday, November 04, Expedia Group (NASDAQ: EXPE) will release its latest earnings report. Benzinga's outlook for Expedia Group is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts are expecting Expedia Group to report a loss of $0.78 per share. Revenue will likely be around $1.37 billion, according to the consensus estimate. Expedia Group EPS in the same period a year ago totaled $3.37. Revenue was $3.56 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 123.15% decline in the company's earnings. Revenue would be down 61.5% from the same quarter last year. Expedia Group's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -3.41 -1.04 1.19 3.84
EPS Actual -4.09 -1.83 1.24 3.37
Revenue Estimate 635.75 M 2.29 B 2.76 B 3.58 B
Revenue Actual 566.00 M 2.21 B 2.75 B 3.56 B

Stock Performance

Shares of Expedia Group were trading at $94.72 as of November 02. Over the last 52-week period, shares are down 28.09%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Expedia Group is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings