Expedia (EXPE) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Expedia, with a focus on how actual results compare to estimates, which could significantly impact stock price [1] Group 1: Earnings Expectations - Expedia is expected to report quarterly earnings of $1.67 per share, reflecting a year-over-year increase of +32.5$2.88 billion, indicating a 10% increase from the previous year [2] - The consensus EPS estimate has been revised 3.94% higher in the last 30 days, suggesting a positive reassessment by analysts [2] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +5% for Expedia, suggesting analysts are optimistic about the company's earnings prospects [5] - A Zacks Rank of 3 indicates a neutral outlook, but the combination with a positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate [6][5] Group 3: Historical Performance - In the last reported quarter, Expedia exceeded expectations by delivering earnings of $5.41 per share against an estimate of$5.15, resulting in a surprise of +5.05% [7] - Over the past four quarters, Expedia has beaten consensus EPS estimates two times, indicating a mixed but generally positive performance history [7] Group 4: Market Dynamics - An earnings beat or miss is not the sole determinant of stock movement, as other factors can influence investor sentiment [8] - Despite the potential for an earnings beat, it is essential to consider additional market factors before making investment decisions regarding Expedia [8]