12:48 PM EDT, 04/29/2024 (MT Newswires) -- Expedia's ( EXPE ) Q1 performance is getting mixed opinions, with estimates divided on the upcoming leadership change and softer third-party data, particularly around the company's vacation rental platform Vrbo, Oppenheimer said in an earnings preview Sunday.

The firm said its projected revenue and earnings are slightly lower than Street estimates because it is cautious about the upcoming CEO change and slowdown in sequential hotel industry growth. The cold weather in January and February in warmer sunbelt regions also likely affected Expedia's ( EXPE ) Q1 revenue, according to Oppenheimer.

Expedia's ( EXPE ) revenue is expected to pick up after Q1 as the company has strong fundamentals that will likely make the management stick to its 2024 forecast, the firm added.

Oppenheimer said the conditions are right for hotels to grow by double digits in 2024 and the company can benefit by redirecting investment to marketing after reducing staff by 1,500 employees. The layoffs are expected to result in estimated annualized cash savings of $190 million to $240 million and a major portion of these savings will go towards software investment, the firm said.

The company's Q1 earnings report is scheduled for Thursday.

Oppenheimer reiterated its outperform rating on Expedia's ( EXPE ) stock and kept the price target at $175.