TripAdvisor Inc. (TRIP - Free Report) reported adjusted third-quarter 2019 earnings of 58 cents per share, missing the Zacks Consensus Estimate of 69 cents. Also, the reported earnings decreased 19.4% from the year-ago quarter.
Revenues in the third quarter were $428 million, missing the Zacks Consensus Estimate by 6.2%. Moreover, the top line was down 6.6% year over year.
Revenue Segments
Starting first-quarter 2019, TripAdvisor revised the reporting structure into three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Revenues of $238 million (accounting for 56% of total revenues) from the Hotels, Media & Platform segment were down 12% from the year-ago quarter.
Revenues of $141 million from the Experiences & Dining segment, which accounted for 33% of total revenues, grew 19% year over year. The company will likely continue to invest in supply and marketing to accelerate E&D products, as well as drive attractive returns in the long run.
The Other segment contributed the remaining 11%. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $49 million, down 30% from the year-ago quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Operating Results
TripAdvisor’s adjusted operating expenses of $303 million were down 4.7% from $318 million a year ago. Per the press release, operating margin of 15.9% was also down 350 basis points from the year-ago quarter.
On a GAAP basis, the company’s net income was $50 million or 36 cents per share versus $69 million or 49 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $933 million, down from $966 million recorded in the second quarter. Accounts receivables were $218 million, down from $270 million in the second quarter.
Cash flow from operations was $1 million versus $181 million in the second quarter. Capex was $23 million, up from $21 million in the second quarter.
During the quarter, the company declared a special cash dividend of $3.50 per share and returned approximately $490 million of capital to its shareholders.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. , AMETEK, Inc. (AME - Free Report) and Carvana Co. (CVNA - Free Report) . While Stamps.com sports a Zacks Rank #1 (Strong Buy), AMETEK and Carvana carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Stamps.com, AMETEK and Carvana is currently projected at 15%, 10.91% and 9%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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 >>
TripAdvisor Inc. (TRIP - Free Report) reported adjusted third-quarter 2019 earnings of 58 cents per share, missing the Zacks Consensus Estimate of 69 cents. Also, the reported earnings decreased 19.4% from the year-ago quarter.
Revenues in the third quarter were $428 million, missing the Zacks Consensus Estimate by 6.2%. Moreover, the top line was down 6.6% year over year.
Revenue Segments
Starting first-quarter 2019, TripAdvisor revised the reporting structure into three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Revenues of $238 million (accounting for 56% of total revenues) from the Hotels, Media & Platform segment were down 12% from the year-ago quarter.
Revenues of $141 million from the Experiences & Dining segment, which accounted for 33% of total revenues, grew 19% year over year. The company will likely continue to invest in supply and marketing to accelerate E&D products, as well as drive attractive returns in the long run.
The Other segment contributed the remaining 11%. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $49 million, down 30% from the year-ago quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Operating Results
TripAdvisor’s adjusted operating expenses of $303 million were down 4.7% from $318 million a year ago. Per the press release, operating margin of 15.9% was also down 350 basis points from the year-ago quarter.
On a GAAP basis, the company’s net income was $50 million or 36 cents per share versus $69 million or 49 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $933 million, down from $966 million recorded in the second quarter. Accounts receivables were $218 million, down from $270 million in the second quarter.
Cash flow from operations was $1 million versus $181 million in the second quarter. Capex was $23 million, up from $21 million in the second quarter.
During the quarter, the company declared a special cash dividend of $3.50 per share and returned approximately $490 million of capital to its shareholders.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. , AMETEK, Inc. (AME - Free Report) and Carvana Co. (CVNA - Free Report) . While Stamps.com sports a Zacks Rank #1 (Strong Buy), AMETEK and Carvana carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Stamps.com, AMETEK and Carvana is currently projected at 15%, 10.91% and 9%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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 >>
Get the latest research report on AME - FREE
Get the latest research report on TRIP - FREE
Get the latest research report on CVNA - FREE