Expedia's Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Expedia Group EXPE reported third-quarter 2024 adjusted earnings of $6.13 per share, which beat the Zacks Consensus Estimate by 0.49%. The figure increased 13% year over year.EXPE’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 42.74%, on average.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $4.06 billion rose 3% year over year. The figure lagged the Zacks Consensus Estimate by 1.17%. B2B revenues increased 18% year over year to $1.2 billion. However, B2C declined 1.4% year over year to $2.78 billion. Trivago declined 11.3% year over year to $102 million. Expedia Group, Inc. Price, Consensus and EPS Surprise Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote Advertising revenues jumped 32% year over year. Simplified sign-up process and expanding product capabilities like video ads and search results are driving 30% increase in engagement.What Should You Expect From EXPE Shares Post Q3?EXPE shares were up 4.18% in pre-market trading.Expedia shares have returned 14.7% year to date (YTD), outperforming the Zacks Retail Wholesale sector’s appreciation of 25.4%.EXPE shares also underperformed the Zacks Internet Commerce industry and its closest peers, including MakeMyTrip MMYT, Booking Holdings BKNG and Travelzoo TZOO.YTD, MakeMyTrip, Booking and Travelzoo shares have returned 121.3%, 82% and 38.7%, respectively. The industry appreciated 35.1% over the same time frame.EXPE offered positive guidance for 2024, which is expected to boost its share price in the near term.EXPE’s Gross Bookings Rises Y/YTotal gross bookings were $27.5 billion, which increased 7% year over year and 150 basis points sequentially. B2C gross bookings increased 3% year over year, while B2B gross bookings increased 19%.  Lodging gross bookings grew 8% year over year to $20 billion, with hotel bookings climbing up 10%.Strength in ‘booked room nights,’ which rose 9% from the year-ago quarter to 97.4 million, was a positive.EXPE’s Operating DetailsAdjusted EBITDA was $1.25 billion in the reported quarter, up 3% year over year.Direct sales and marketing expenses were $1.9 billion, up 11% year over year. Overhead expenses were $602 million, down 3% year over year.Adjusted EBIT fell 1% year over year to $892 million.EXPE’s Debt Levels Improve, Burns Free Cash FlowAs of Sept. 30, 2024, cash and cash equivalents and short-term investments were $6.24 billion, down from $6.27 billion as of June 30, 2024.Long-term debt was $6.263 billion as of Sept. 30, 2024 compared with $6.259 billion as of June 30, 2024.Gross leverage ratio was reduced to 2.2X, and Expedia remains on track toward its targeted gross leverage ratio of 2X, driven by its ongoing strong EBITDA growth.Expedia used $1.49 billion in net cash in the reported quarter and burnt $1.687 billion in free cash flow.EXPE has approximately $3.2 billion remaining under its current share repurchase authorization.Expedia Offers Positive GuidanceEXPE expects gross bookings in the 6% to 8% range for fourth-quarter 2024, driven by a more favorable outlook for its air business. Revenue growth is expected to be roughly 1% lower than gross bookings growth.It expects fourth-quarter EBITDA and EBIT to be relatively steady year over year.  For 2024, EXPE expects gross bookings to be up 5% over 2023. Revenue growth is expected to remain 6% over 2023. EBITDA and EBIT margins are now expected to be slightly up year over year.Zacks RankCurrently, Expedia has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE): Free Stock Analysis Report MakeMyTrip Limited (MMYT): Free Stock Analysis Report Travelzoo (TZOO): Free Stock Analysis Report Booking Holdings Inc. (BKNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks