Expedia (Nasdaq: EXPE ) is expected to report Q3 earnings on Oct. 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Expedia's revenues will expand 2.2% and EPS will compress -18.2%.
The average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $1.26.
Last quarter, Expedia chalked up revenue of $1.04 billion. GAAP reported sales were 14% higher than the prior-year quarter's $913.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.89. GAAP EPS of $0.76 for Q2 were 25% lower than the prior-year quarter's $1.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 77.9%, 70 basis points worse than the prior-year quarter. Operating margin was 15.2%, 80 basis points worse than the prior-year quarter. Net margin was 10.1%, 530 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $3.93 billion. The average EPS estimate is $2.98.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 345 members out of 441 rating the stock outperform, and 96 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Expedia a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Expedia is hold, with an average price target of $42.23.
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