Expedia Group reported its fifth consecutive earnings beat and raised its full-year outlook. Alongside continued share repurchases and a stable $0.48 dividend, investor focus is turning to future earnings growth and the sustainability of its dividend policy.
Expedia Group is pursuing improved earnings power centered on its B2C business, on the assumption that solid consumer demand will continue across its portfolio of online travel brands. Its published outlook points to earnings beats and upward revisions, although risks such as fluctuations in travel demand and intensifying competition remain.
The ongoing share repurchase program is valued at $5 billion, with more than 20% of the company's shares already repurchased, while a stable quarterly dividend of $0.48 has also been announced. The sustainability of continued capital returns will be a focus for investors as the B2C segment improves its performance.
According to the analysis, revenue is expected to reach $18.7 billion and earnings $2.7 billion by 2029. However, achieving these figures is expected to require annual revenue growth of 7.2% and an increase of approximately $1.2 billion in current earnings.
Fair value is estimated at $293.71, implying approximately 9% downside from the current share price.