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TripAdvisor (TRIP) Q4 Loss Wider Than Expected, Sales Top

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TripAdvisor Inc. TRIP 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 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, 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.

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