Expedia set to report record earnings, analysts expect major growth
- Expedia will report its first-quarter earnings on May 8, 2025, expecting earnings of 40 cents per share and revenue of $3.01 billion.
- This represents a 90% year-over-year increase in adjusted earnings and a 4% rise in sales compared to last year.
- Investors anticipate positive stock movement based on historical positive post-earnings performance.
On May 8, 2025, Expedia (NASDAQ: EXPE) will unveil its fiscal first-quarter earnings report. Analysts forecast earnings of 40 cents per share, representing a significant year-over-year boost of 90% in adjusted earnings compared to the previous year's figure of 21 cents per share. Additionally, they anticipate a revenue rise to $3.01 billion, up from $2.89 billion the year before, reflecting a 4% increase. The growth aligns with strong global travel demand and improved profit margins across Expedia's business sectors, including both business-to-business and business-to-consumer channels. In the lead-up to the earnings announcement, the company is focusing on strategic investments, particularly in artificial intelligence and the “One Key” loyalty program, which are designed to enhance customer retention. These investments are expected to bolster Expedia’s market position and improve its overall profitability in a competitive landscape where consumer demand remains high. Furthermore, the company is actively pursuing share buybacks to increase shareholder value, a move that may appeal to investors anticipating positive earnings results. Expedia's historical performance presents an intriguing case for traders. In a review of the company's previous earnings announcements over the last five years, 56% of one-day post-earnings returns were positive, which indicates a potentially favorable investment environment. Notably, this percentage improves to 70% when considering the past three years. The median of positive one-day returns stood at 5.5%, while negative returns averaged -11%. Such data underscores the volatile nature of stock performance in relation to earnings reports, presenting opportunities for savvy traders to capitalize on pre and post-earnings activities based on historical trends. As the earnings release approaches, market analysts are also evaluating the influence of peer performance on Expedia’s stock reaction. Historical assessments suggest that the stock market often reacts to the earnings results of leading peers in the travel and hospitality sectors, sometimes even before Expedia’s figures are disclosed. This trend points to a greater interconnectedness among competitors, where earnings expectations can shift due to overall market sentiment influenced by the broader industry dynamics, with potential outcomes that could permanently alter investor perceptions and stock valuations.