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What's in the Cards for Expedia Group (EXPE) in Q2 Earnings?

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Expedia Group, Inc. (EXPE - Free Report) is scheduled to report its second-quarter 2024 results on Aug 8.

For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $3.54 billion, suggesting growth of 5.4% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at $3.17 per share, suggesting growth of 9.7% from the figure reported in the year-ago quarter.

We note that EXPE’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the surprise being 47.34%, on average.

Let’s see how things have shaped up for the upcoming announcement.

Expedia Group, Inc. Price and EPS Surprise

Expedia Group, Inc. Price and EPS Surprise

Expedia Group, Inc. price-eps-surprise | Expedia Group, Inc. Quote

Key Factors to Note

Expedia’s second-quarter 2024 results are likely to have benefited from solid momentum across gross bookings, driven by increasing ‘booked room nights’ and accelerating lodging revenues, particularly for its hotel business.

The Zacks Consensus Estimate for gross bookings is pinned at $28.68 billion, suggesting growth of 5% year over year.

The company’s growing initiatives to infuse generative AI technology into its services are expected to have driven customer momentum by delivering an enhanced user experience during the to-be-reported quarter.

Increasing investments for B2B-specific innovations are expected to have contributed well to the B2B segment’s performance in the quarter under review.

The consensus mark for B2B revenues stands at $989.09 million, indicating growth of 14.9% from the year-ago reported figure.

Strong momentum across Brand Expedia and advertising businesses is likely to have boosted the company’s performance in the second quarter.

Increasing demand across non-U.S. regions is expected to have been a positive.

The improving B2C segment on the back of increased investments to boost global market footprint is expected to have contributed well.

However, softness in its Vrbo business is likely to have negatively impacted the company’s top line in the second quarter.

Weakness across the car business, owing to continued pressure on car rental rates, is expected to have hurt EXPE’s profitability in the quarter under review.

Macroeconomic uncertainties and intensifying online travel competition are likely to have been headwinds for the company.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Expedia currently has an Earnings ESP of -1.38% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Brinker International (EAT - Free Report) has an Earnings ESP of +8.02% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Brinker International is set to report fourth-quarter fiscal 2024 results on Aug 14. The Zacks Consensus Estimate for EAT’s earnings is pegged at $1.65 per share, indicating growth of 18.7% from the year-ago quarter’s reported figure.

Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +9.09% and sports a Zacks Rank #1 at present.

Abercrombie & Fitch is set to report its second-quarter 2024 results on Aug 28. The Zacks Consensus Estimate for ANF’s earnings is pegged at $2.11 per share, indicating a significant jump of 91.8% from the prior-year quarter’s reported figure.

Affirm (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank #2 at present.

Affirm is scheduled to release fourth-quarter fiscal 2024 results on Aug 28. The Zacks Consensus Estimate for AFRM’s loss is pegged at 45 cents per share, narrower than the prior-year quarter’s loss of 69 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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