TripAdvisor (TRIP) Shares Fall Double Digits On Earnings Miss

If you have booked a trip lately, you probably have looked up at least some details of your destination on TripAdvisor (TRIP - Snapshot Report) first. The company has developed into a massive travel site offering user-generated reviews about hotels, activities, and restaurants around the world, and a go-to source for many before a vacation.

Many have become bullish on this company as hopes are rising that consumers will be back later this year thanks to lower oil prices and a better jobs situation, but the stock has seen some serious volatility as of late, and it is definitely in an overall downtrend. Investors have undoubtedly been awaiting TRIP’s latest earnings report to set the record straight and to give some guidance on where this company is heading to close out the year.

This was especially true following some recent earnings estimate revision activity for TRIP, as the most recent estimates for the full year have been to the downside. Plus, TRIP doesn’t have a great recent track record when it comes to earnings, as its last report was a miss by roughly 9.4%, which pushed the trailing four quarter close to negative territory.

It also doesn’t help that TRIP currently has a Zacks Rank #4 (Sell), but that could change following TripAdvisor’s latest earnings report which was just released. The company missed on earnings but beat on revenues so we could see more trouble for this stock ahead.

We have highlighted some of the key details from the just-released announcement below:

Earnings: TRIP missed on earnings. The Zacks Consensus Estimate called for EPS of 51 cents, while the company reported 37 cents per share of net income, while earnings, adjusted for stock option expense and pretax expenses, came in at 48 cents a share (this is the number more comparable to our consensus).

Revenue: TRIP did beat on revenues. TripAdvisor posted revenues of $354 million, beating the Zacks Consensus Estimate for revenues of $347.7 million.

Key Stats: Revenue from ‘subscription, transaction, and other’ was a bright spot in terms of growth. Revenues here were $72 million, an increase of over 100% when compared to the year ago quarter. Meanwhile, the press release said that more than 315 million average monthly unique visitors went to TRIP’s sites in the quarter.

Stock Price Reaction: TRIP is falling heavily in after-hours trading. Shares are down close to 11.7% at time of writing, pushing shares to the $74 mark. This suggests it could be a pretty rough day for TRIP in tomorrow’s session, and that this sell ranked stock might not be out of the woods just yet.

Check back later for our full write up on this TRIP earnings report.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.