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What's in the Offing for TripAdvisor's (TRIP) Q2 Earnings?
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TripAdvisor, Inc. (TRIP - Free Report) is set to report second-quarter 2020 results on Aug 6. It delivered a negative earnings surprise of 41.7% in the last reported quarter.
The company topped the Zacks Consensus Estimate once in the last four quarters and missed thrice, with an average negative earnings surprise of 14.8%.
Trend in Estimate Revision
For the second quarter, the Zacks Consensus Estimate for the bottom line has remained stable at a loss of 72 cents per share over the past 30 days. This indicates a decrease of 260% from the year-ago reported figure.
The consensus mark for revenues is pegged at $43.86 million, implying a decline of 89.6% from the year-ago reported figure.
Let’s see how things have shaped up prior to the upcoming results.
TripAdvisor has been suffering from sluggishness in all the three revenue segments — namely Hotels, Media & Platform, Experiences & Dining, and Other — due to COVID-19-induced travel bans along with the need for physical distancing.
The online travel company recently stated that it expects revenues for the to-be-reported quarter to be down 80% year over year due to stringent travel restrictions owing to the coronavirus pandemic. Also, TripAdvisor expects to post adjusted EBITDA loss of $85 million for the quarter to be reported.
The company’s monthly unique users declined significantly on a year-over-year basis. But on a brighter note, it stated that though monthly unique users have declined significantly on a year-over-year basis, the metric has improved since April and hence, the monthly unique user performance is expected to improve in the June quarter.
Markedly, the company has taken a lot of cost-reduction measures in order to combat the ongoing crisis. These measures are expected to have helped it reduce expenses in the to-e-reported quarter. However, profit margins are expected to have remained under pressure in the quarter to be reported owing to the COVID-19 pandemic and uncertainties in the global economic outlook.
Also, increasing marketing investments and rising competition may reflect on the company’s results for the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for TripAdvisor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, TripAdvisor has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.
Benefitfocus has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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What's in the Offing for TripAdvisor's (TRIP) Q2 Earnings?
TripAdvisor, Inc. (TRIP - Free Report) is set to report second-quarter 2020 results on Aug 6. It delivered a negative earnings surprise of 41.7% in the last reported quarter.
The company topped the Zacks Consensus Estimate once in the last four quarters and missed thrice, with an average negative earnings surprise of 14.8%.
Trend in Estimate Revision
For the second quarter, the Zacks Consensus Estimate for the bottom line has remained stable at a loss of 72 cents per share over the past 30 days. This indicates a decrease of 260% from the year-ago reported figure.
The consensus mark for revenues is pegged at $43.86 million, implying a decline of 89.6% from the year-ago reported figure.
Let’s see how things have shaped up prior to the upcoming results.
TripAdvisor, Inc. Price and EPS Surprise
TripAdvisor, Inc. price-eps-surprise | TripAdvisor, Inc. Quote
Factors to Note
TripAdvisor has been suffering from sluggishness in all the three revenue segments — namely Hotels, Media & Platform, Experiences & Dining, and Other — due to COVID-19-induced travel bans along with the need for physical distancing.
The online travel company recently stated that it expects revenues for the to-be-reported quarter to be down 80% year over year due to stringent travel restrictions owing to the coronavirus pandemic. Also, TripAdvisor expects to post adjusted EBITDA loss of $85 million for the quarter to be reported.
The company’s monthly unique users declined significantly on a year-over-year basis. But on a brighter note, it stated that though monthly unique users have declined significantly on a year-over-year basis, the metric has improved since April and hence, the monthly unique user performance is expected to improve in the June quarter.
Markedly, the company has taken a lot of cost-reduction measures in order to combat the ongoing crisis. These measures are expected to have helped it reduce expenses in the to-e-reported quarter. However, profit margins are expected to have remained under pressure in the quarter to be reported owing to the COVID-19 pandemic and uncertainties in the global economic outlook.
Also, increasing marketing investments and rising competition may reflect on the company’s results for the quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for TripAdvisor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, TripAdvisor has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
Cogent Communications Holdings (CCOI - Free Report) has an Earnings ESP of +11.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and currently carries a Zacks Rank of 2.
Benefitfocus has an Earnings ESP of +6.25% and carries a Zacks Rank of 2, currently.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>