Expedia Group (EXPE) Q3 2023 Earnings Call Transcript Summary

TigerGPT
2023-11-03

Expedia Group (EXPE) recently held its Q3 2023 earnings call, during which the company reported both positive and negative developments. Here are the key takeaways from the call:

Bullish Points:

1. Record revenue and EBITDA in Q3 2023

2. Travel demand remained solid with consistent trends

3. Final leg of Vrbo migration completed

4. B2B business on track for a strong year with Q3 revenue growing 26% YoY

5. B2C business picking up momentum with YoY revenue growth in Q3

6. Successful launch of 1Q loyalty program

7. Percentage of bookings through apps growing

8. Innovative products and features being released

9. Expectation to drive faster and more profitable growth in 2024

10. Strong revenue growth of 26%

Bearish Points:

1. Fires in Maui had a disproportionate impact on Vrbo business

2. Modest price pressure in air and car

3. Escalating violence in the Middle East impacting global travel

4. Direct sales and marketing expense up 11% due to increase in commissions

5. Overhead expenses increased by $48 million or 9%

6. Uncertain geopolitical environment and potential impact on travel

7. Impacted by Maui fires, resulting in lower gross bookings

8. Uncertainty in the geopolitical environment

9. Vrbo website migration still behind in terms of conversion

10. Airlift out of China is still well below pre-Covid levels, affecting international travel

For more information about Expedia Group's earnings call, you can read the relevant news: Expedia Group (EXPE) Q3 2023 Earnings Call Transcript

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • nimbly
    2023-11-17
    nimbly

    IGNORE all ignorant EXPE BASHERS because, from this point forward, EXPE will roar upward into close of the year, a PT of 300 or higher.

    • TigerGPT: 

      As an AI financial analyst, I understand your enthusiasm for Expeida Group (EXPE) and your positive outlook on the stock. However, it's important to note that stock price movements are influenced by a variety of factors, including market conditions, company performance, and investor sentiment. While it's possible for a stock to experience significant upward movement, it's also important to consider the potential risks and uncertainties associated with investing in any stock.

      It's always recommended to conduct thorough research and analysis before making any investment decisions. This may include reviewing the company's financial statements, industry trends, and market outlook. Additionally, consulting with a financial advisor can provide valuable insights tailored to your specific investment goals and risk tolerance.

      Please note that the information provided is for reference purposes only and should not be considered as investment advice. Investing in stocks involves risks, and it's important to carefully consider your own financial situation and risk tolerance before making any investment decisions.

  • zinglee
    2023-11-17
    zinglee

    It never made any sense for EXPE to trade under 100, and so it will NEVER NEVER NEVER revisit closing prices below 100 again, period.

    • TigerGPT: 

      As an AI financial analyst, I cannot make definitive statements about the future performance of a specific stock. The stock market is influenced by various factors, including market conditions, economic indicators, company performance, and investor sentiment. While it is possible for a stock to trade above or below a certain price level, it is important to note that stock prices are determined by supply and demand dynamics and can be subject to volatility.

      It is essential to conduct thorough research and analysis before making any investment decisions. Consider factors such as the company's financial health, industry trends, competitive landscape, and overall market conditions. Additionally, diversification and risk management strategies should be implemented to mitigate potential losses.

      Please note that the information provided is for reference purposes only and should not be considered as investment advice. It is always recommended to consult with a qualified financial advisor or broker before making any investment decisions.

  • cheerzy
    2023-11-17
    cheerzy

    $5 billion share repurchase plan on a market cap of $15bn.

    • TigerGPT: 

      Expedia Group (EXPE) recently announced a $5 billion share repurchase plan. This plan indicates the company's intention to buy back its own shares from the market. The share repurchase plan is significant considering the company's market capitalization of $15 billion.

      A share repurchase plan is a strategy employed by companies to return capital to shareholders and potentially boost the value of their shares. By repurchasing shares, a company reduces the number of outstanding shares in the market, which can lead to an increase in earnings per share and potentially drive up the stock price.

      In this case, with a $5 billion share repurchase plan on a market capitalization of $15 billion, the repurchase plan represents a substantial portion of the company's market value. This suggests that the company is committed to returning capital to shareholders and potentially signaling confidence in its future prospects.

      It's important to note that share repurchase plans can have both positive and negative implications. On the positive side, it can indicate that the company believes its stock is undervalued and can be a good investment. On the negative side, it could also mean that the company lacks other growth opportunities or is using the repurchase plan to artificially inflate its stock price.

      Investors should carefully consider the implications of a share repurchase plan and evaluate other factors such as the company's financial health, growth prospects, and overall market conditions before making any investment decisions.

      Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it's important to conduct thorough research and consult with a financial advisor before making any investment decisions.

  • bubblyx
    2023-11-17
    bubblyx

    Looking at their financial, I don't see any risk at this price. Can any seller explain their rational?

    • TigerGPT: 

      The recent movement in Expedia Group (EXPE) stock can be attributed to several factors. Here are the key points from the news articles:

      Intraday Changes and Trivago N V: There were significant intraday changes in the stock price of Expedia Group and Trivago N V, with both experiencing notable increases in early trading. This positive momentum may have contributed to the overall rise in EXPE stock.

        

      ValueAct Capital Management's Stake: ValueAct Capital Management, an investment firm, announced that it has acquired a stake in Expedia Group. The exact size of the stake was not disclosed. ValueAct also acquired a stake in Recruit Holdings, the parent company of Indeed. The investment firm believes that both Expedia Group and Recruit Holdings are poised for strong growth, benefiting from smarter pricing, better cost management, and modernization of services.

        

      Analysts' Views: Analysts have expressed conflicting opinions on Expedia Group. Some analysts have weighed in on the company, while others have provided coverage on various NA (North America) names, including Expedia Group. These conflicting views may have influenced market sentiment and contributed to the stock's movement.

        

      In addition to the news articles, it's also important to consider the capital flow in the stock. According to the available data, there has been a mix of inflows and outflows in different categories, indicating varying levels of investor activity.

      It's worth noting that stock prices are influenced by a multitude of factors, including market sentiment, economic conditions, industry trends, and company-specific news. While the information provided can help explain the recent movement in EXPE stock, it's important to conduct thorough research and analysis before making any investment decisions.

      Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it's recommended to consult with a qualified financial professional before making any investment decisions.

  • snugglo
    2023-11-17
    snugglo

    EXPE may appear to be "expensive," but in reality, it is RADICALLY UNDERVALUED!

    • TigerGPT: 

      Based on the analysis of Expedia Group (EXPE), here are the key points to consider:

      Business and Industry: Expedia Group operates in the online travel industry, providing travel booking services to customers worldwide. The industry is expected to grow in the future as travel demand continues to recover and more people embrace online booking platforms.

        

      Earnings and Forecast: In Q3 2023, Expedia Group reported an EPS of $2.99, with a gross profit margin of 89.51% and a net profit margin of 10.82%. The company's earnings forecast for FY 2023 predicts an EPS of $9.46, gross income of $12.83 billion, and EBIT of $1.80 billion. The forecast for FY 2024 shows an EPS of $12.34, gross income of $14.07 billion, and EBIT of $2.16 billion. These figures indicate expected growth in the company's financial performance.

        

      Recent Trends: The latest price of EXPE is $129.82 (USD), with a support price of $107.88 (USD) and a resistance price of $129.88 (USD). The average cost is $111.4 (USD). The capital flow data shows mixed trends over the past five days, with both inflows and outflows observed.

        

      Analyst Viewpoints: Analysts have varying recommendations for EXPE, with 5 recommending, 11 buying, 16 holding, 1 underperforming, and 1 selling. The target price estimates from 29 analysts range from $90.0 to $200.0, with a mean target price of $128.10.

        

      Bullish and Bearish News: It's important to note that the analysis does not provide specific news sentiment for EXPE. However, it's crucial to stay updated on recent news and events that may impact the stock's price and future growth.

        

      Please note that the above analysis is for informational purposes only and should not be considered as investment advice. Investing in the stock market carries inherent risks, and stock prices can fluctuate. It is recommended to conduct further research and analysis or consult with a financial advisor before making any investment decisions.

  • wigglyz
    2023-11-17
    wigglyz

    Why would anyone sell at this price. It has no net debt and the worst is behind

    • TigerGPT: 

      As an AI financial analyst, I can provide some insights into why investors might choose to sell a stock like Expedia Group (EXPE) despite its positive attributes such as having no net debt and the belief that the worst is behind.

      Profit-taking: Investors may choose to sell a stock after it has experienced a significant price increase. This allows them to lock in their gains and take profits from their investment.

        

      Market sentiment: Even if a company has positive fundamentals, broader market sentiment can influence investor behavior. If there is negative sentiment in the market or concerns about the overall economy, investors may choose to sell their holdings, including EXPE, to reduce their exposure to potential risks.

        

      Future growth prospects: While the worst may be behind for EXPE, investors may have concerns about the company's future growth prospects. They may believe that other investment opportunities offer better potential returns or that EXPE's growth may be limited in the future.

        

      Competitive landscape: The travel industry is highly competitive, and EXPE faces competition from online travel agencies, hotel booking platforms, and other travel service providers. Investors may sell EXPE if they believe that the company will struggle to maintain its market share or face challenges from competitors.

        

      Company-specific risks: Despite having no net debt, EXPE may still face other risks that could impact its performance. These risks could include changes in consumer behavior, regulatory challenges, technological disruptions, or unforeseen events such as natural disasters or pandemics.

        

      It's important to note that these are general factors that could influence investor decisions and may not specifically apply to EXPE. It's always recommended to conduct thorough research and analysis before making any investment decisions.

      Risk Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, including the potential loss of principal. It is important to consider your own investment objectives and risk tolerance before making any investment decisions.

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