) is set to report first quarter 2013 results on Apr 25. Last
quarter, it posted a 4.0% positive surprise. Let's see how things
are shaping up for this announcement.
Growth Factors This Past Quarter
Though Expedia's revenue in the fourth quarter was down
sequentially, a stronger travel market all over the world,
contribution from VIA and strategic expansion in Asia helped
revenue exceed our expectations.
We believe that Expedia will continue to benefit from the
acquisition of VIA Travel that closed in the second quarter of
2012. Bookings were down sequentially in the last quarter due to
weakness across channels and geographies, but there could be
improvements based on recent acquisitions and agreements that are
likely to expand its addressable market. Weaker volumes also
impacted margins in the last quarter.
Our proven model does not conclusively show that Expedia will
beat earnings this quarter. That is because a stock needs to have
both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 for this to happen. That is not
the case here as you will see below.
The Most Accurate estimate stands at $0.05 while the Zacks
Consensus Estimate is higher at $0.11. That is a difference of
Zacks Rank #3 (Hold):
Expedia's Zacks Rank #3 (Hold) when combined with a negative ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
APPLD MATLS INC (AMAT): Free Stock Analysis
AMAZON.COM INC (AMZN): Free Stock Analysis
EXPEDIA INC (EXPE): Free Stock Analysis
INTERSIL CORP (ISIL): Free Stock Analysis
To read this article on Zacks.com click here.
Applied Materials, Inc.
), Earnings ESP of +7.69% and Zacks Rank #2 (Buy)
Intersil Corp. (
, with an ESP of +62.5% and a Zacks Rank #3 (Hold)
), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)