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Expedia Group (EXPE) Q4 Earnings Beat, Revenues Rise Y/Y
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Expedia Group, Inc. (EXPE - Free Report) reported adjusted earnings of $1.06 per share for fourth-quarter 2021, which surpassed the Zacks Consensus Estimate by 9.3%.
Notably, the bottom line compares favorably with the prior-year quarter’s loss of $2.64 per share but declined 69.9% sequentially.
Revenues of $2.28 billion surged 148% year over year but declined 23.1% from the previous quarter. Further, the figure missed the Zacks Consensus Estimate of $2.36 billion.
Year-over-year revenues growth was driven by strong recovery across all its lines of business, owing to increasing travel resiliency of people. Moreover, improved travel demand from the year-ago quarter contributed well.
However, the sequential fall was primarily attributed to the travel disruptions caused by the rapidly spreading COVID variant, Omicron.
Nevertheless, the impacts of the current COVID-19 wave seem to be less severe than that of the previous waves, which remains a major positive.
Expedia Group’s gross bookings were $17.5 billion, which increased 131% year over year. However, the figure decreased 6.7% from the prior quarter, owing to a sequential decline in lodging, air, and other travel products due to the seasonality effect and disruptions caused by Omicron.
Although the coronavirus pandemic-led uncertainties continue to persist in the global travel industry, growing confidence among people regarding travel remains a tailwind. Optimism regarding the ongoing vaccination drive remains another positive.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Retail: The company generated $1.73 billion in revenues (75.9% of total revenues) from the segment, surging 146% year over year.
B2B: The segment yielded revenues of $481 million (21.1% of total revenues), up 159% from the year-ago quarter.
trivago: Revenues from the segment totaled $99 million (4.3% of revenues), up 162% year over year.
Revenues by Business Model
The Merchant model generated revenues of $1.48 billion (65% of revenues), up 184% year over year. Merchant gross bookings were $9.14 billion, up 120% from the prior-year quarter.
The Agency division generated revenues of $611 million (27% of revenues), improving 125% from the prior-year quarter. Agency gross bookings were $8.3 billion, up 144% year over year.
Advertising & Media and Other generated $188 million of revenues (8% of the top line), increasing 47% from the year-ago quarter. This can primarily be attributed to the strong performance of Expedia Group Media Solutions and trivago.
Revenues by Geography
Expedia Group generated $1.66 billion in revenues (72.6% of total revenues) from domestic regions, up 137% from the prior-year quarter.
Revenues generated from international regions totaled $624 million (27.4% of revenues), up 182% on a year-over-year basis.
Revenues by Product Line
Lodging revenues accounted for 75% of total revenues. The company witnessed 116% growth in Lodging revenues, owing to the solid momentum in stayed room nights, which grew 74%. The company witnessed a 24% rise in revenues per room night.
Air revenues accounted for 3% of revenues. Notably, the company witnessed 68% growth in Air revenues, owing to growth of 92% in air tickets sold.
Operating Details
Adjusted EBITDA was $479 million in the reported quarter compared with ($160) million in the year-ago quarter.
Adjusted selling and marketing expenses were $1.03 billion, up 107% year over year. As a percentage of revenues, the figure contracted 883 basis points (bps) year over year.
Adjusted general and administrative expenses were $133 million, up 30% year over year. The figure contracted 534 bps year over year as a percentage of revenues.
Adjusted technology and content expenses were $248 million, up 10% from the year-ago quarter. The figure contracted to 10.8% from 24.4% in the year-ago quarter as a percentage of revenues.
The company reported a fourth-quarter operating income of $163 million against the loss of $463 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalents were $4.11 billion, down from $5.03 billion as of Sep 30, 2021. Short-term investments were $200 million at the end of the reported quarter, which was nil as the end of the previous quarter.
Long-term debt was $7.715 billion at the end of the fourth quarter compared with $7.712 billion at the end of the third quarter.
Expedia Group generated $285 million of cash from operations in the quarter under review against $1.2 billion of cash used in operations in the last reported quarter.
Free cash flow was $142 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, Expedia carries a Zacks Rank #3 (Hold).
Image: Bigstock
Expedia Group (EXPE) Q4 Earnings Beat, Revenues Rise Y/Y
Expedia Group, Inc. (EXPE - Free Report) reported adjusted earnings of $1.06 per share for fourth-quarter 2021, which surpassed the Zacks Consensus Estimate by 9.3%.
Notably, the bottom line compares favorably with the prior-year quarter’s loss of $2.64 per share but declined 69.9% sequentially.
Revenues of $2.28 billion surged 148% year over year but declined 23.1% from the previous quarter. Further, the figure missed the Zacks Consensus Estimate of $2.36 billion.
Year-over-year revenues growth was driven by strong recovery across all its lines of business, owing to increasing travel resiliency of people. Moreover, improved travel demand from the year-ago quarter contributed well.
However, the sequential fall was primarily attributed to the travel disruptions caused by the rapidly spreading COVID variant, Omicron.
Nevertheless, the impacts of the current COVID-19 wave seem to be less severe than that of the previous waves, which remains a major positive.
Expedia Group’s gross bookings were $17.5 billion, which increased 131% year over year. However, the figure decreased 6.7% from the prior quarter, owing to a sequential decline in lodging, air, and other travel products due to the seasonality effect and disruptions caused by Omicron.
Although the coronavirus pandemic-led uncertainties continue to persist in the global travel industry, growing confidence among people regarding travel remains a tailwind. Optimism regarding the ongoing vaccination drive remains another positive.
Expedia Group, Inc. Price, Consensus and EPS Surprise
Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote
Revenues by Segment
Retail: The company generated $1.73 billion in revenues (75.9% of total revenues) from the segment, surging 146% year over year.
B2B: The segment yielded revenues of $481 million (21.1% of total revenues), up 159% from the year-ago quarter.
trivago: Revenues from the segment totaled $99 million (4.3% of revenues), up 162% year over year.
Revenues by Business Model
The Merchant model generated revenues of $1.48 billion (65% of revenues), up 184% year over year. Merchant gross bookings were $9.14 billion, up 120% from the prior-year quarter.
The Agency division generated revenues of $611 million (27% of revenues), improving 125% from the prior-year quarter. Agency gross bookings were $8.3 billion, up 144% year over year.
Advertising & Media and Other generated $188 million of revenues (8% of the top line), increasing 47% from the year-ago quarter. This can primarily be attributed to the strong performance of Expedia Group Media Solutions and trivago.
Revenues by Geography
Expedia Group generated $1.66 billion in revenues (72.6% of total revenues) from domestic regions, up 137% from the prior-year quarter.
Revenues generated from international regions totaled $624 million (27.4% of revenues), up 182% on a year-over-year basis.
Revenues by Product Line
Lodging revenues accounted for 75% of total revenues. The company witnessed 116% growth in Lodging revenues, owing to the solid momentum in stayed room nights, which grew 74%. The company witnessed a 24% rise in revenues per room night.
Air revenues accounted for 3% of revenues. Notably, the company witnessed 68% growth in Air revenues, owing to growth of 92% in air tickets sold.
Operating Details
Adjusted EBITDA was $479 million in the reported quarter compared with ($160) million in the year-ago quarter.
Adjusted selling and marketing expenses were $1.03 billion, up 107% year over year. As a percentage of revenues, the figure contracted 883 basis points (bps) year over year.
Adjusted general and administrative expenses were $133 million, up 30% year over year. The figure contracted 534 bps year over year as a percentage of revenues.
Adjusted technology and content expenses were $248 million, up 10% from the year-ago quarter. The figure contracted to 10.8% from 24.4% in the year-ago quarter as a percentage of revenues.
The company reported a fourth-quarter operating income of $163 million against the loss of $463 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalents were $4.11 billion, down from $5.03 billion as of Sep 30, 2021. Short-term investments were $200 million at the end of the reported quarter, which was nil as the end of the previous quarter.
Long-term debt was $7.715 billion at the end of the fourth quarter compared with $7.712 billion at the end of the third quarter.
Expedia Group generated $285 million of cash from operations in the quarter under review against $1.2 billion of cash used in operations in the last reported quarter.
Free cash flow was $142 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, Expedia carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the retail-wholesale sector are AutoNation (AN - Free Report) , Dollar Tree (DLTR - Free Report) and The Kroger (KR - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AutoNation has gained 35% over a year. The long-term earnings growth rate for AN is currently projected at 23.55%.
Dollar Tree has gained 27.3% over a year. The long-term earnings growth rate for DLTR is currently projected at 12.18%.
Kroger has gained 33% over a year. The long-term earnings growth rate for KR is currently projected at 8.37%.