TripAdvisor Inc. (TRIP - Free Report) reported adjusted first-quarter 2019 earnings of 36 cents per share, beating the Zacks Consensus Estimate by 5 cents. The reported earnings also increased 33.3% sequentially and 20% from the year-ago quarter.
Quarterly revenues were $376 million, missing the Zacks Consensus Estimate of $384 million. Moreover, the top line was down 1% year over year.
Following the company’s first-quarter results, the share price fell 11.41%. The decline was due to lower-than-expected revenues and a decrease in average monthly unique visitors.
Notably, the stock has gained 2.2% against its industry’s decline of 2.1% over the past year.
Revenue Segments
Starting first-quarter 2019, TripAdvisor revised its reporting structure into three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Revenues of $254 million (accounting for 68% of total revenues) from the Hotels, Media & Platform segment remained flat with the year-ago quarter.
The Experiences & Dining segment’s revenues of $80 million increased 29% year over year and contributed 21% to total revenues. The company will likely continue to invest in supply and marketing to accelerate E&D products, and drive attractive returns over the long run.
The Other segment contributed the remaining 11%. Revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China comprise total revenues under this segment. Revenues in this segment were $42 million, down 33% from the year-ago quarter, primarily due to the elimination of some marginal and unprofitable revenues within some non-TripAdvisor branded offerings.
Important Metrics
Average monthly unique visitors fell 5% from the prior-year quarter to approximately 411 million.
User reviews on the company’s website reached 760 million, representing year-over-year growth of more than 20%. The increase was driven by strong efforts toward improving its user base through marketing initiatives and enhancing mobile-centric product designs.
Operating Results
TripAdvisor’s adjusted operating expenses of $293 million were down 2.2% from $307 million a year ago. Per the press release, operating margin of 8.2% was up 210 basis points from a year ago.
On a GAAP basis, the company’s net income was $26 million or 18 cents per share versus net loss of $5 million or 4 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $811 million, up from $670 million recorded in fourth-quarter 2018. Accounts receivables were $236 million, up from $212 million in the fourth quarter.
Cash flow from operations was $182 million, increasing from $31 million in the fourth quarter. Capex was $17 million, up from $16 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Facebook, Inc. , Shopify Inc. (SHOP - Free Report) and AXT, Inc. (AXTI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Facebook, Shopify and AXT is currently projected at 20.2%, 23.7% and 15%, respectively.
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TripAdvisor Inc. (TRIP - Free Report) reported adjusted first-quarter 2019 earnings of 36 cents per share, beating the Zacks Consensus Estimate by 5 cents. The reported earnings also increased 33.3% sequentially and 20% from the year-ago quarter.
Quarterly revenues were $376 million, missing the Zacks Consensus Estimate of $384 million. Moreover, the top line was down 1% year over year.
Following the company’s first-quarter results, the share price fell 11.41%. The decline was due to lower-than-expected revenues and a decrease in average monthly unique visitors.
Notably, the stock has gained 2.2% against its industry’s decline of 2.1% over the past year.
Revenue Segments
Starting first-quarter 2019, TripAdvisor revised its reporting structure into three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Revenues of $254 million (accounting for 68% of total revenues) from the Hotels, Media & Platform segment remained flat with the year-ago quarter.
The Experiences & Dining segment’s revenues of $80 million increased 29% year over year and contributed 21% to total revenues. The company will likely continue to invest in supply and marketing to accelerate E&D products, and drive attractive returns over the long run.
The Other segment contributed the remaining 11%. Revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China comprise total revenues under this segment. Revenues in this segment were $42 million, down 33% from the year-ago quarter, primarily due to the elimination of some marginal and unprofitable revenues within some non-TripAdvisor branded offerings.
Important Metrics
Average monthly unique visitors fell 5% from the prior-year quarter to approximately 411 million.
User reviews on the company’s website reached 760 million, representing year-over-year growth of more than 20%. The increase was driven by strong efforts toward improving its user base through marketing initiatives and enhancing mobile-centric product designs.
Operating Results
TripAdvisor’s adjusted operating expenses of $293 million were down 2.2% from $307 million a year ago. Per the press release, operating margin of 8.2% was up 210 basis points from a year ago.
On a GAAP basis, the company’s net income was $26 million or 18 cents per share versus net loss of $5 million or 4 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $811 million, up from $670 million recorded in fourth-quarter 2018. Accounts receivables were $236 million, up from $212 million in the fourth quarter.
Cash flow from operations was $182 million, increasing from $31 million in the fourth quarter. Capex was $17 million, up from $16 million in the fourth quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Facebook, Inc. , Shopify Inc. (SHOP - Free Report) and AXT, Inc. (AXTI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Facebook, Shopify and AXT is currently projected at 20.2%, 23.7% and 15%, respectively.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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