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TripAdvisor (TRIP) Q4 Loss Wider Than Expected, Sales Top
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TripAdvisor Inc. (TRIP - Free Report) reported adjusted fourth-quarter 2020 loss of 41 cents per share, wider than the Zacks Consensus Estimate of a loss of 26 cents. It reported earnings of 38 cents per share in the year-ago quarter.
Revenues for the fourth quarter were $116 million, surpassing the Zacks Consensus Estimate by 12.5%. However, the top line was down 65% year over year.
For October, November, and December, monthly unique users on Tripadvisor sites were approximately 68%, 58%, and 59%, respectively.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Revenues of $74 million (accounting for 64% of total revenues) from the Hotels, Media & Platform segment were down 62% from the year-ago quarter.
Revenues of $36 million from the Experiences & Dining segment, which accounted for 31% of total revenues, were also down 67% year over year.
The Other segment contributed the remaining 5% to total revenues. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $6 million, down 81% from the year-ago quarter.
Operating Results
TripAdvisor’s operating expenses (selling & marketing, technology & content, and general & administrative) of $165 million were down 35.8% from $257 million a year ago. Operating loss was $92 million for the fourth quarter versus operating profit of 23 million in the year-ago period.
On a GAAP basis, the company recorded net loss of $55 million or loss of 41 cents per share versus net income of $53 million or earnings of 38 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash and cash equivalents of roughly $418 million, down from $446 million recorded in the third quarter.
Accounts receivables were $83 million, down from $91 million in the third quarter.
As of Dec 31, 2020, the company had a long-term debt of $491 million.
Cash flow from operations was ($15) million versus ($31) million in the third quarter. Capex was $9 million versus $15 million in the third quarter. Free cash flow was ($24) million versus ($42) million in the third quarter.
Long-term earnings growth for Semtech, KLA Corp., and Garmin is currently projected at 12.5%, 11.6%, and 6.8%, respectively.
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The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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TripAdvisor (TRIP) Q4 Loss Wider Than Expected, Sales Top
TripAdvisor Inc. (TRIP - Free Report) reported adjusted fourth-quarter 2020 loss of 41 cents per share, wider than the Zacks Consensus Estimate of a loss of 26 cents. It reported earnings of 38 cents per share in the year-ago quarter.
Revenues for the fourth quarter were $116 million, surpassing the Zacks Consensus Estimate by 12.5%. However, the top line was down 65% year over year.
For October, November, and December, monthly unique users on Tripadvisor sites were approximately 68%, 58%, and 59%, respectively.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote
Revenue Segments
TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
Revenues of $74 million (accounting for 64% of total revenues) from the Hotels, Media & Platform segment were down 62% from the year-ago quarter.
Revenues of $36 million from the Experiences & Dining segment, which accounted for 31% of total revenues, were also down 67% year over year.
The Other segment contributed the remaining 5% to total revenues. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $6 million, down 81% from the year-ago quarter.
Operating Results
TripAdvisor’s operating expenses (selling & marketing, technology & content, and general & administrative) of $165 million were down 35.8% from $257 million a year ago. Operating loss was $92 million for the fourth quarter versus operating profit of 23 million in the year-ago period.
On a GAAP basis, the company recorded net loss of $55 million or loss of 41 cents per share versus net income of $53 million or earnings of 38 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash and cash equivalents of roughly $418 million, down from $446 million recorded in the third quarter.
Accounts receivables were $83 million, down from $91 million in the third quarter.
As of Dec 31, 2020, the company had a long-term debt of $491 million.
Cash flow from operations was ($15) million versus ($31) million in the third quarter. Capex was $9 million versus $15 million in the third quarter. Free cash flow was ($24) million versus ($42) million in the third quarter.
Zacks Rank & Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Semtech Corporation (SMTC - Free Report) , KLA Corporation (KLAC - Free Report) and Garmin Ltd. (GRMN - 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 Semtech, KLA Corp., and Garmin is currently projected at 12.5%, 11.6%, and 6.8%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>