Yahoo Finance TripAdvisor (TRIP) Down 26.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for TripAdvisor (TRIP). Shares have lost about 26.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is TripAdvisor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
TripAdvisor Q4 Earnings and Revenues Rise Y/Y
TripAdvisor reported non-GAAP fourth-quarter 2022 earnings of 16 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line compares favorably with the year-ago quarter’s loss of 1 cent per share.
Revenues of $354 million surged 47% year over year and surpassed the Zacks Consensus Estimate of $344 million. The top-line growth was driven by growing demand for travel industry-related services. Strong momentum across Tripadvisor Core and Viator contributed well to the top-line growth.
Further, well-performing TheFork segment benefited the company.
However, adverse foreign currency fluctuations and macroeconomic headwinds affected the quarterly performance.
Quarterly Details
TripAdvisor reports revenues under three segments: Tripadvisor Core, Viator and TheFork.
Tripadvisor Core: Revenues summed $217 million (accounting for 61.3% of revenues), up 34% year over year. Revenues from Tripadvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 36% from the prior-year quarter’s level to $140 million. Tripadvisor-branded display and platform revenues jumped 14% year over year to $33 million.
Revenues from Tripadvisor experiences and dining were $34 million, increased 70% year over year. Other revenues consisting of rentals, flights, cars and cruise revenues remained flat with the prior-year quarter’s figure of $10 million.
Viator: Revenues totaled $127 million (35.9% of the top line). The figure skyrocketed 115% from the year-ago quarter’s level.
TheFork: Revenues came in at $33 million (9.3% of revenues), increasing 10% year over year.
Operating Results
TripAdvisor’s selling and marketing costs increased 54% year over year to $194 million.
General and administrative costs were up 26.1% from the year-ago quarter’s level to $58 million. Technology and content costs of $60 million increased 17.6% on a year-over-year basis.
TRIP reported an operating loss of $13 million in the fourth quarter compared with $28 million loss in the prior-year quarter.
In the reported quarter, total adjusted EBITDA margin was 12%, remained flat on a year-over-year basis.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash and cash equivalents were $1.02 billion, down from $1.07 billion as of Sep 30, 2022.
Long-term debt of $836 million remained flat with the previous quarter’s figure.
Cash used in operations was $40 million against $60 million of cash generated from operations in the prior quarter.
Additionally, free cash flow was an outflow of $55 million in the fourth quarter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted 9.09% due to these changes.
VGM Scores
At this time, TripAdvisor has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
TripAdvisor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
