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What's in the Offing for TripAdvisor's (TRIP) Q3 Earnings?
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TripAdvisor, Inc. (TRIP - Free Report) is set to report third-quarter 2020 results on Nov 5. It delivered a negative earnings surprise of 7.04% 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 13.2%.
Trend in Estimate Revision
For the third quarter, the Zacks Consensus Estimate for the bottom line has remained stable at a loss of 29 cents per share over the past 30 days. This indicates a decrease of 150% from the year-ago reported figure.
The consensus mark for revenues is pegged at $147.7 million, implying a decline of 65.5% 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.
During the second quarter, the company’s monthly unique users declined significantly on a year-over-year basis. The trend is expected to have continued in the to-be-reported quarter due to COVID-19 fears and travel restrictions.
Markedly, it took 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-be-reported quarter.
In addition, during the quarter, TripAdvisor made constant efforts to expand restaurant offerings and distribution capabilities. In this regard, the company unveiled an online listings management solution, Menu Connect, which enables restaurants to publish, update and manage their menu and business information across a wide network of sites without any hassle.
This new solution is expected to have helped the company to diversify revenues and expand top-line growth.
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 #4 (Sell).
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.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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What's in the Offing for TripAdvisor's (TRIP) Q3 Earnings?
TripAdvisor, Inc. (TRIP - Free Report) is set to report third-quarter 2020 results on Nov 5. It delivered a negative earnings surprise of 7.04% 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 13.2%.
Trend in Estimate Revision
For the third quarter, the Zacks Consensus Estimate for the bottom line has remained stable at a loss of 29 cents per share over the past 30 days. This indicates a decrease of 150% from the year-ago reported figure.
The consensus mark for revenues is pegged at $147.7 million, implying a decline of 65.5% 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 Drive Growth
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.
During the second quarter, the company’s monthly unique users declined significantly on a year-over-year basis. The trend is expected to have continued in the to-be-reported quarter due to COVID-19 fears and travel restrictions.
Markedly, it took 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-be-reported quarter.
In addition, during the quarter, TripAdvisor made constant efforts to expand restaurant offerings and distribution capabilities. In this regard, the company unveiled an online listings management solution, Menu Connect, which enables restaurants to publish, update and manage their menu and business information across a wide network of sites without any hassle.
This new solution is expected to have helped the company to diversify revenues and expand top-line growth.
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 #4 (Sell).
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.
MercadoLibre, Inc. (MELI - Free Report) has an Earnings ESP of +269.05% and carries a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>