Expedia (EXPE) Continues Strong Earnings Beat Trend Ahead of Next Report
Searching for a stock that has consistently outperformed earnings expectations? Expedia (EXPE), a prominent player in the Zacks Internet – Commerce industry, might be worth considering as it gears up for its next quarterly report.
This online travel company has demonstrated a solid record of exceeding earnings forecasts, particularly in its last two reports. The average surprise for these quarters was 7.98%.
Recent Earnings Performance
In its most recent quarter, analysts projected Expedia would earn $2.07 per share; however, it reported earnings of $2.39 per share, achieving a remarkable surprise of 15.46%. In the quarter before, the consensus estimate was $6.10 per share, and the company exceeded this with $6.13 per share, resulting in a slight surprise of 0.49%.
Price and EPS Surprise
Expedia’s earnings estimates have been on the rise, partly due to its history of positive surprises. Additionally, the company’s current Zacks Earnings ESP (Expected Surprise Prediction) suggests a favorable outlook for continued earnings beats in the upcoming reports.
Research indicates that stocks exhibiting both a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better tend to produce positive surprises about 70% of the time. This means that if you analyze ten such stocks, approximately seven might outperform consensus estimates.
The Zacks Earnings ESP evaluates the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate reflects recent changes in analyst predictions, which can be more reliable than earlier forecasts. As analysts adjust their estimates before an earnings announcement, they may provide the most current insights.
Currently, Expedia boasts an Earnings ESP of +3.58%, indicating a recent surge in analyst optimism regarding the company’s earnings potential. This positive ESP, coupled with a Zacks Rank of #3 (Hold), suggests the possibility of another earnings beat on the horizon. The company’s next earnings report is anticipated on May 8, 2025.
Earnings ESP Significance
It’s crucial to note that while a negative Earnings ESP can diminish its predictive power, it does not guarantee a missed earnings result. Many companies ultimately outperform consensus EPS estimates; however, performance may not solely depend on estimated earnings. Conversely, some stocks may maintain stability even with lower-than-expected results.
For investors, checking a company’s Earnings ESP before earnings releases can significantly increase the likelihood of successful predictions. Consider utilizing the Earnings ESP Filter to identify promising stock opportunities ahead of earnings announcements.
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Expedia Group, Inc. (EXPE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
