Expedia Group, Inc. (NASDAQ:EXPE) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a pretty great week for Expedia Group, Inc. (NASDAQ:EXPE) shareholders, with its shares surging 13% to US$181 in the week since its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of US$4.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.3% to hit US$5.04 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Expedia Group

Following the latest results, Expedia Group's 30 analysts are now forecasting revenues of US$14.6b in 2025. This would be a meaningful 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 30% to US$10.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$14.6b and earnings per share (EPS) of US$10.89 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 14% to US$176. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Expedia Group, with the most bullish analyst valuing it at US$220 and the most bearish at US$130 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Expedia Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Expedia Group.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Expedia Group's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Expedia Group going out to 2026, and you can see them free on our platform here..

Even so, be aware that Expedia Group is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.