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TripAdvisor (TRIP) Down 2.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for TripAdvisor (TRIP - Free Report) . Shares have lost about 2.6% 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 its most recent earnings report in order to get a better handle on the important catalysts.
TripAdvisor Q1 Reports Loss
TripAdvisor reported an adjusted first-quarter 2022 loss of 9 cents per share, in line with the Zacks Consensus Estimate. The bottom line is narrower than the year-ago quarter’s loss of 39 cents per share. TRIP reported a loss per share of 1 cent in the prior quarter.
Revenues of $262 million skyrocketed 113% year over year. The same further surpassed the consensus mark by 4.2% and increased 8.7% sequentially.
The top-line increase was driven by a recovery in consumer travel demand owing to the progress in vaccination drives and the relaxation of government restrictions.
For the first quarter, monthly unique users on TripAdvisor-branded sites increased 27% from the year-ago quarter’s level.
Quarterly Details
TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Hotels, Media & Platform: The segment generated revenues of $160 million (accounting for 61% of revenues), up 82% year over year. Revenues from TripAdvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 84% from the prior-year quarter’s level to $136 million. In addition, TripAdvisor-branded display and platform increased 71% year over year to $24 million.
Experiences & Dining: The segment generated revenues of $92 million (35% of total revenues) from this segment. The figure skyrocketed 229% from the year-ago quarter’s level, driven by increased experiences and dining revenues and the Viator point of sale business.
Other: Revenues from this segment came in at $10 million (4% of revenues), increasing 43% year over year. This segment includes revenues from rentals, flights and cars, and cruise.
Operating Results
TripAdvisor’s selling and marketing costs increased 93% year over year to $141 million, driven by higher spending on search engine marketing and other online traffic acquisitions across all segments and businesses to meet rising consumer travel demand amid the travel-sector recovery period.
General and administrative costs were up 5% from the year-ago quarter’s level to $40 million.
Technology and content costs of $54 million decreased 2% on a year-over-year basis.
TRIP reported an operating loss of $20 million for the first quarter of 2022 compared with $84 million loss in the fourth quarter of 2021.
In the reported quarter, non-GAAP adjusted EBITDA was $27 million against ($26) million in the same quarter last year.
Balance Sheet & Cash Flow
As of Mar 31, 2022, cash and cash equivalents were $781 million, up from $723 million reported on Dec 31, 2021.
Long-term debt as of Mar 31, 2022 was $834 million. TRIP’s long-term debt was $833 million as of Dec 31, 2021.
Cash provided by operating activities was $86 million for the reported quarter compared with $65 million in the prior quarter.
Additionally, free cash flow was $72 million for the first quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 42.74% due to these changes.
VGM Scores
At this time, TripAdvisor has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TripAdvisor has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
TripAdvisor belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Amazon (AMZN - Free Report) , has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Amazon reported revenues of $116.44 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $4.24 for the same period compares with $15.79 a year ago.
For the current quarter, Amazon is expected to post earnings of $3.72 per share, indicating a change of -75.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Amazon. Also, the stock has a VGM Score of D.
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TripAdvisor (TRIP) Down 2.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for TripAdvisor (TRIP - Free Report) . Shares have lost about 2.6% 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 its most recent earnings report in order to get a better handle on the important catalysts.
TripAdvisor Q1 Reports Loss
TripAdvisor reported an adjusted first-quarter 2022 loss of 9 cents per share, in line with the Zacks Consensus Estimate. The bottom line is narrower than the year-ago quarter’s loss of 39 cents per share. TRIP reported a loss per share of 1 cent in the prior quarter.
Revenues of $262 million skyrocketed 113% year over year. The same further surpassed the consensus mark by 4.2% and increased 8.7% sequentially.
The top-line increase was driven by a recovery in consumer travel demand owing to the progress in vaccination drives and the relaxation of government restrictions.
For the first quarter, monthly unique users on TripAdvisor-branded sites increased 27% from the year-ago quarter’s level.
Quarterly Details
TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Hotels, Media & Platform: The segment generated revenues of $160 million (accounting for 61% of revenues), up 82% year over year. Revenues from TripAdvisor-branded hotels, including hotel auction and B2B subscription offerings, increased 84% from the prior-year quarter’s level to $136 million. In addition, TripAdvisor-branded display and platform increased 71% year over year to $24 million.
Experiences & Dining: The segment generated revenues of $92 million (35% of total revenues) from this segment. The figure skyrocketed 229% from the year-ago quarter’s level, driven by increased experiences and dining revenues and the Viator point of sale business.
Other: Revenues from this segment came in at $10 million (4% of revenues), increasing 43% year over year. This segment includes revenues from rentals, flights and cars, and cruise.
Operating Results
TripAdvisor’s selling and marketing costs increased 93% year over year to $141 million, driven by higher spending on search engine marketing and other online traffic acquisitions across all segments and businesses to meet rising consumer travel demand amid the travel-sector recovery period.
General and administrative costs were up 5% from the year-ago quarter’s level to $40 million.
Technology and content costs of $54 million decreased 2% on a year-over-year basis.
TRIP reported an operating loss of $20 million for the first quarter of 2022 compared with $84 million loss in the fourth quarter of 2021.
In the reported quarter, non-GAAP adjusted EBITDA was $27 million against ($26) million in the same quarter last year.
Balance Sheet & Cash Flow
As of Mar 31, 2022, cash and cash equivalents were $781 million, up from $723 million reported on Dec 31, 2021.
Long-term debt as of Mar 31, 2022 was $834 million. TRIP’s long-term debt was $833 million as of Dec 31, 2021.
Cash provided by operating activities was $86 million for the reported quarter compared with $65 million in the prior quarter.
Additionally, free cash flow was $72 million for the first quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 42.74% due to these changes.
VGM Scores
At this time, TripAdvisor has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TripAdvisor has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
TripAdvisor belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Amazon (AMZN - Free Report) , has gained 7.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Amazon reported revenues of $116.44 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $4.24 for the same period compares with $15.79 a year ago.
For the current quarter, Amazon is expected to post earnings of $3.72 per share, indicating a change of -75.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Amazon. Also, the stock has a VGM Score of D.