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TripAdvisor (TRIP) to Report Q2 Earnings: What's in Store?

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TripAdvisor (TRIP - Free Report) is scheduled to report second-quarter 2021 results on Aug 5.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $199 million, suggesting growth of 237.3% from the year-ago reported figure.

Further, the Zacks Consensus Estimate for loss stands at 6 cents per share. The company reported a loss of 76 cents per share in the prior-year quarter.

Earnings surpassed estimates in one of the trailing four quarters and missed the same on the other three occasions, delivering a negative surprise of 12.3%, on average.

TripAdvisor, Inc. Price and EPS Surprise

TripAdvisor, Inc. Price and EPS Surprise

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

Factors to Note

In the second quarter, TripAdvisor is likely to have benefited from the ongoing vaccination drive throughout the world. In addition, increasing number of vaccinated people in the United States might have improved the domestic business.

Its improvement in key offerings including hotel metasearch auction, experiences, B2B business, display advertising and dining is expected to get reflected in second-quarter results.

Further, the company’s launch of an annual subscription plan, Tripadvisor Plus, and a mobile app for iOS as well as Android users during the quarter might have remained tailwinds.

Additionally, it collaborated with WarnerMedia's streaming platform, HBO Max, to celebrate pride and support LGBTQIA+ travelers who are willing to participate in Pride when there will be events across the United States. This move is likely to have driven momentum across LGBTQIA+ travelers.

TripAdvisor’s extended partnership with Trip.com to boost Tripadvisor Plus offerings is anticipated to have contributed well to its performance in the soon to-be-reported quarter.

The company’s Viator teamed up with Booking.com during the second quarter to integrate its high-quality attractions, tours and activities with the latter’s platform. This might have remained a positive.

Yet, headwinds in the global travel industry due to the ongoing pandemic are expected to have remained a primary concern. Also, travel sluggishness in India owing to increasing number of coronavirus cases in the country might have affected second-quarter results.

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. 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.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Agilent Technologies (A - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank of 2, at present.

Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.