Advertisement
Australia markets closed

  • ALL ORDS

    7,817.40
    -81.50 (-1.03%)
     

  • ASX 200

    7,567.30
    -74.80 (-0.98%)
     

  • AUD/USD

    0.6415
    -0.0011 (-0.17%)
     

  • OIL

    82.88
    +0.15 (+0.18%)
     

  • GOLD

    2,408.10
    +10.10 (+0.42%)
     

  • Bitcoin AUD

    99,467.09
    +129.93 (+0.13%)
     

  • CMC Crypto 200

    1,369.44
    +56.82 (+4.33%)
     

  • AUD/EUR

    0.6023
    -0.0008 (-0.13%)
     

  • AUD/NZD

    1.0896
    +0.0021 (+0.19%)
     

  • NZX 50

    11,796.21
    -39.83 (-0.34%)
     

  • NASDAQ

    17,082.23
    -312.08 (-1.79%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • Dow Jones

    37,869.99
    +94.61 (+0.25%)
     

  • DAX

    17,737.36
    -100.04 (-0.56%)
     

  • Hang Seng

    16,224.14
    -161.73 (-0.99%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

TripAdvisor (TRIP) Lags Q4 Earnings Estimates, Tops Revenues

Zacks Equity Research

TripAdvisor Inc. TRIP reported adjusted fourth-quarter 2018 earnings of 27 cents per share, missing the Zacks Consensus Estimate by 3 cents. The reported earnings decreased 62.5% sequentially but increased 350% from the year-ago quarter.

Revenues in the fourth quarter were $346 million, surpassing the Zacks Consensus Estimate by 0.49%. The top line was up 7% year over year but down 24% sequentially.

During the quarter, the company recorded a year-over-year increase in average monthly unique visitors and revenue per hotel shopper. However, average monthly unique hotel shoppers decreased from the year-ago quarter.

Notably, the stock has gained 39.8% against its industry’s decline of 6% over the past year.

Revenue Segments

TripAdvisor reports revenues under two segments: Hotel and Other.

ADVERTISEMENT

Revenues of $240 million (accounting for 69% of its total revenues) from the Hotel segment decreased 2% from the year-ago quarter. This segment includes click, display, subscription and transaction-based revenues from hotels, air and cruise. It also comprises sales from the company’s largest subsidiary, SmarterTravel, as well as operations in China.

Revenues of $106 million from the Non-Hotel segment increased 38% year over year and contributed the remaining 31% of its total revenues. This segment includes revenues from attractions, restaurants and vacation rental businesses.

Revenues by Source

Revenues of $139 million (accounting for 40% of the total revenues) from Click-based and transaction increased 1% from the year-ago quarter. Revenues from Display-based advertising remained flat year over year at $77 million and brought home 22% of the total revenues. The other hotel revenue component contributed $24 million, which was down 20% from the year-ago quarter.

Important Metrics

Average monthly unique visitors grew 2% from the prior-year quarter to approximately 490 million.

Average monthly unique hotel shoppers decreased 11% year over year.

Operating Results

TripAdvisor’s adjusted operating expenses of $273 million were up 2.2% from $267 million a year ago. Per the press release, operating margin of 6.6% was up 380 basis points from the year ago-quarter.

On a GAAP basis, the company’s net income was $7 million or 5 cents per share versus net loss of $84 million or 60 cents in the prior-year quarter.

Balance Sheet & Cash Flow

TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $670 million, up from $663 million recorded in the last reported quarter. Accounts receivables were $212 million, down from $237million in the third quarter.

Cash flow from operations was $31 million, increasing from $14 million in the last reported quarter. Capex was $16 million, up from $15 million in the third quarter.

TripAdvisor, Inc. Price, Consensus and EPS Surprise

 

TripAdvisor, Inc. Price, Consensus and EPS Surprise | TripAdvisor, Inc. Quote

Zacks Rank & Other Stocks to Consider

Currently, TripAdvisor has a Zacks Rank #2 (Buy). Other top-ranked stocks in the broader technology sector include Expedia Group, Inc. EXPE, AMETEK, Inc. AME and Inphi Corporation IPHI, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Expedia, AMETEK and Inphi is projected to be 13.4%, 9.6% and 18.5%, respectively.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
 
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
 
Inphi Corporation (IPHI) : Free Stock Analysis Report
 
AMETEK, Inc. (AME) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research