line travel agency (OTA) Expedia (EXPE) is set to report earnings after the close on Wednesday — and analysts polled by Thomson Reuters expect double-digit percentage growth amid challenges.
Expedia is set to grow revenue by 26% to $1.71 billion in Q4, compared with the year earlier quarter revenue of $1.36 billion, according to the consensus view. EPS minus items is expected to jump 16% to $1, from 86 cents, according to the poll of analysts.
Expedia stock was down about 3.5% in afternoon trading on the stock market today. The market overall was down on Monday on worries over the global economy and oil back under $30 a barrel. Expedia has an IBD Composite Rating of 52, where 99 is the highest.
Analysts have been expressing concern for the health of online travel companies as of late, citing the slowing global economy and increased competition.
In a research note Monday, RBC Capital Markets analyst Mark Mahaney wrote that web traffic to Expedia’s various properties has been slightly up during the quarter, but attributed it to the fact that the firm acquired Orbitz in September and in December HomeAway, a large alternative accommodations platform. Those acquisitions also make the quarter more difficult for analysts to model, Mahaney says.