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TripAdvisor Plunges 13% as Q3 Earnings, Revenue Disappoint

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TripAdvisor Inc. (TRIP - Free Report) just released its third quarter fiscal 2016 financial results, posting earnings of 41 cents per share (accounting for non-stock based compensation and BNRI) and revenues of $421 million. TRIP is a #4 (Sell), and is down 13.15% to $54.80 per share in after-hours trading shortly after its earnings report was released.

Missed earnings estimates. The company reported earnings of 41 cents per share, lagging behind the Zacks Consensus Estimate of 42 cents per share. This number excludes 4 cents from non-recurring items.

Missed earnings estimates. The company saw revenue figured of $421 million, missing our consensus estimate of $439 million and increasing 1% year-over-year (or roughly 3% on a constant currency basis).

TripAdvisor saw average monthly unique visitors reached 390 million, up 11% year-over-year. User reviews and opinions grew almost 50% year-over-year and reached 435 million at September 30, 2016. This covers about 1.05 million hotels and accommodations, 830,000 vacation rentals, 4.2 million restaurants, and 730,000 attractions and experiences.

Adjusted EBITDA was $114 million, a decrease of 12% year-over-year (or approximately 9% on a constant currency basis).

“In the third quarter, content and community grew quickly off of massive bases and we continued improving our products and our platform,” said Steve Kaufer, President and Chief Executive Officer of TripAdvisor. “We are focused on building for the long-term, delivering the best end-to-end user experience in travel and creating more value for partners in our marketplace.”

Here’s a graph that looks at TripAdvisor’s price, consensus, and EPS surprise:

TRIPADVISOR INC Price, Consensus and EPS Surprise

TRIPADVISOR INC Price, Consensus and EPS Surprise | TRIPADVISOR INC Quote

TripAdvisor Inc. is an online travel research company. The Company features reviews and advice on hotels, resorts, flights, vacation rentals, vacation packages, travel guides, and lots more. The sites operate in many countries worldwide, including China under daodao.com. TripAdvisor Inc. is headquartered in Newton, Massachusetts.

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