TripAdvisor Inc. (TRIP - Free Report) reported adjusted second-quarter 2019 earnings of 45 cents per share, missing the Zacks Consensus Estimate of 52 cents. However, the reported earnings increased 9.8% from the year-ago quarter.
Revenues in the second quarter were $422 million, missing the Zacks Consensus Estimate of $447 million. Moreover, the top line was down 3% year over year.
Notably, the stock has lost 21.3% compared with the industry’s decline of 17% 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 60% of total revenues) from the Hotels, Media & Platform segment were down 7%from the year-ago quarter.
Revenues of $125 million from the Experiences & Dining segment, which accounted for 30% of total revenues, grew 28% year over year. The company will likely continue to invest in supply and marketing to accelerate E&D products, and drive attractive returns in the long run.
The Other segment contributed the remaining 10%. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $43 million, down 32% from the year-ago quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Operating Results
TripAdvisor’s adjusted operating expenses of $299 million were down 9.7% from $331 million a year ago. Per the press release, operating margin of 15.6% was up 430 basis points from the year ago-quarter.
On a GAAP basis, the company’s net income was $34 million or 24cents per share versus $32 million or 23 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $966 million, up from $811 million recorded in the first quarter. Accounts receivables were $270 million, up from $236million in the first quarter.
Cash flow from operations was $181millionversus $182 million in the first quarter. Capex was $21 million, up from $17 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Alibaba Group Holding Limited (BABA - Free Report) , Teradyne, Inc. (TER - Free Report) and eBay Inc. (EBAY - 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 Alibaba, Teradyne and eBay is currently projected at 26.8%, 11.4% and 9.4%, respectively.
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TripAdvisor Inc. (TRIP - Free Report) reported adjusted second-quarter 2019 earnings of 45 cents per share, missing the Zacks Consensus Estimate of 52 cents. However, the reported earnings increased 9.8% from the year-ago quarter.
Revenues in the second quarter were $422 million, missing the Zacks Consensus Estimate of $447 million. Moreover, the top line was down 3% year over year.
Notably, the stock has lost 21.3% compared with the industry’s decline of 17% 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 60% of total revenues) from the Hotels, Media & Platform segment were down 7%from the year-ago quarter.
Revenues of $125 million from the Experiences & Dining segment, which accounted for 30% of total revenues, grew 28% year over year. The company will likely continue to invest in supply and marketing to accelerate E&D products, and drive attractive returns in the long run.
The Other segment contributed the remaining 10%. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $43 million, down 32% from the year-ago quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Operating Results
TripAdvisor’s adjusted operating expenses of $299 million were down 9.7% from $331 million a year ago. Per the press release, operating margin of 15.6% was up 430 basis points from the year ago-quarter.
On a GAAP basis, the company’s net income was $34 million or 24cents per share versus $32 million or 23 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $966 million, up from $811 million recorded in the first quarter. Accounts receivables were $270 million, up from $236million in the first quarter.
Cash flow from operations was $181millionversus $182 million in the first quarter. Capex was $21 million, up from $17 million in the first quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Alibaba Group Holding Limited (BABA - Free Report) , Teradyne, Inc. (TER - Free Report) and eBay Inc. (EBAY - 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 Alibaba, Teradyne and eBay is currently projected at 26.8%, 11.4% and 9.4%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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.
Free: See Our Top Stock and 4 Runners Up >>
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