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TripAdvisor (TRIP) to Report Q4 Earnings: What's in the Cards?

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TripAdvisor, Inc. (TRIP - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 18.

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $103.12 million, suggesting a decline of 69.2% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for loss stands at 26 cents per share. Notably, the company reported earnings of 38 cents per share in the prior-year quarter.

The company’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, delivering a surprise of 1.11%, on average.

TripAdvisor, Inc. Price and EPS Surprise

TripAdvisor, Inc. Price and EPS Surprise

TripAdvisor, Inc. price-eps-surprise | TripAdvisor, Inc. Quote

Factors to Consider

TripAdvisor’s fourth-quarter performance is likely to have been persistently hurt by coronavirus-induced disruptions in the global travel industry. Moreover, the renewed spike in COVID-19 cases across many parts of the world is expected to have remained a headwind.

Further, softness in the Hotels, Media & Platform segment is anticipated to get reflected in the to-be-reported results.

Nevertheless, the company’s focus on new initiatives and an improving Experiences & Dining segment are likely to have benefited its performance in the quarter under review.

Additionally, its expanding footprint in the international restaurant reservation space might have been a steady tailwind.

Moreover, TripAdvisor’s constant efforts to expand restaurant offerings and distribution capabilities are expected to have contributed well.

Notably, the introduction of 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, is expected to have driven the company’s momentum across restaurant owners during the soon-to-be-reported quarter.

This, in turn, is anticipated to have aided growth in the company’s fourth-quarter topline.

Additionally, TripAdvisor’s strong cost-reduction measures to combat the ongoing coronavirus-led crisis are expected to have helped curbing expenses in the quarter under review.

What Our Model Says

Our proven model predicts 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TripAdvisor has an Earnings ESP of +15.79% and a Zacks Rank #3, currently.

Other Stocks to Consider

Here are some other companies worth considering, which have the right combination of elements to beat on earnings this quarter:

Workday, Inc. (WDAY - Free Report) currently has an Earnings ESP of +1.16% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CrowdStrike Holdings Inc. (CRWD - Free Report) presently has an Earnings ESP of +57.75% and a Zacks Rank of 2.

Sapiens International Corporation (SPNS - Free Report) currently has an Earnings ESP of +1.96% and is Zacks #2 Ranked.

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