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TripAdvisor Inc. (TRIP - Free Report) reported adjusted second-quarter 2018 earnings of 41 cents per share, surpassing the Zacks Consensus Estimate by 2 cents. Also, earnings increased 37% sequentially and 8% from the year-ago quarter.
However, revenues in the second quarter were $433 million, lagging the Zacks Consensus Estimate of $436.1 million.
Following the weaker-than-expected revenues in the second quarter, the share price was down 10.32%.
However, on a year-to-date basis, the stock has outperformed the industry it belongs to. It has gained 48% compared with the industry’s rally of 27.2% in the said period.
Revenues
TripAdvisor’s quarterly revenues reflect an increase of 14.6% sequentially and 2.1% year over year.
Revenue Segments
TripAdvisor reports revenues under two segments: Hotel and Other.
Revenues of $313 million from the Hotel segment decreased 4% from the year-ago quarter but contributed 73% of the total revenues. This segment includes click, display, subscription and transaction-based revenues from hotels, air and cruise, also including sales from the company’s largest subsidiary, SmarterTravel, as well as from operations in China.
Revenues of $120 million from the Non-Hotel segment increased 22% year over year and contributed the remaining 27% of the total revenues. This segment includes revenues from attractions, restaurants and vacation rental businesses.
Revenues by Source
Revenues of $199 million from Click-based advertising decreased 7% from the year-ago quarter and accounted for 46% of the total revenues. Revenues from Display-based advertising increased 8% year over year to $80 million and brought home 18% of the total revenues. The other hotel revenue component contributed $34 million, down 11% from the year-ago quarter. However, it accounted for 17% of the total revenues.
Important Metrics
User reviews and opinions reached 661 in the quarter and grew 24% year over year.
Average monthly unique visitors grew 10% from the prior-year quarter to approximately 456 million.
Average monthly unique hotel shoppers decreased 3% year over year to approximately 149 million.
Operating Results
TripAdvisor’s adjusted operating expenses of $331 million were flat from the year-ago quarter. Per the press release, operating margin of 11.3% was up 50 bps from the year ago-quarter.
On a GAAP basis, TripAdvisor’s net income was $32 million or 23 cents per share compared with net profit of $27 million or earnings of 19 cents per share.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $678 million, up from $650 million recorded in the last reported quarter. Accounts receivables were $300 million, up from $281 million in the first quarter.
Cash flow from operations was $186 million, increasing from $174 million in the last reported quarter. Capex was $16 million, up from $15 million in the first quarter. Free cash flow was 170 million, down from $204 million in the last reported quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Long-term earnings growth for Groupon, IAC/InterActiveCorp and Advantestis currently projected to be 3%, 7.5% and 15.5%, respectively.
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TripAdvisor (TRIP) Tops Q2 Earnings Estimates, Lags Revenues
TripAdvisor Inc. (TRIP - Free Report) reported adjusted second-quarter 2018 earnings of 41 cents per share, surpassing the Zacks Consensus Estimate by 2 cents. Also, earnings increased 37% sequentially and 8% from the year-ago quarter.
However, revenues in the second quarter were $433 million, lagging the Zacks Consensus Estimate of $436.1 million.
Following the weaker-than-expected revenues in the second quarter, the share price was down 10.32%.
However, on a year-to-date basis, the stock has outperformed the industry it belongs to. It has gained 48% compared with the industry’s rally of 27.2% in the said period.
Revenues
TripAdvisor’s quarterly revenues reflect an increase of 14.6% sequentially and 2.1% year over year.
Revenue Segments
TripAdvisor reports revenues under two segments: Hotel and Other.
Revenues of $313 million from the Hotel segment decreased 4% from the year-ago quarter but contributed 73% of the total revenues. This segment includes click, display, subscription and transaction-based revenues from hotels, air and cruise, also including sales from the company’s largest subsidiary, SmarterTravel, as well as from operations in China.
Revenues of $120 million from the Non-Hotel segment increased 22% year over year and contributed the remaining 27% of the total revenues. This segment includes revenues from attractions, restaurants and vacation rental businesses.
Revenues by Source
Revenues of $199 million from Click-based advertising decreased 7% from the year-ago quarter and accounted for 46% of the total revenues. Revenues from Display-based advertising increased 8% year over year to $80 million and brought home 18% of the total revenues. The other hotel revenue component contributed $34 million, down 11% from the year-ago quarter. However, it accounted for 17% of the total revenues.
Important Metrics
User reviews and opinions reached 661 in the quarter and grew 24% year over year.
Average monthly unique visitors grew 10% from the prior-year quarter to approximately 456 million.
Average monthly unique hotel shoppers decreased 3% year over year to approximately 149 million.
Operating Results
TripAdvisor’s adjusted operating expenses of $331 million were flat from the year-ago quarter. Per the press release, operating margin of 11.3% was up 50 bps from the year ago-quarter.
On a GAAP basis, TripAdvisor’s net income was $32 million or 23 cents per share compared with net profit of $27 million or earnings of 19 cents per share.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $678 million, up from $650 million recorded in the last reported quarter. Accounts receivables were $300 million, up from $281 million in the first quarter.
Cash flow from operations was $186 million, increasing from $174 million in the last reported quarter. Capex was $16 million, up from $15 million in the first quarter. Free cash flow was 170 million, down from $204 million in the last reported quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. Price, Consensus and EPS Surprise | TripAdvisor, Inc. Quote
Zacks Rank and Other Stocks to Consider
Currently, TripAdvisor sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same industry include Groupon (GRPN - Free Report) , IAC/InterActiveCorp (IAC - Free Report) and Advantest Corporation (ATEYY - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Groupon, IAC/InterActiveCorp and Advantestis currently projected to be 3%, 7.5% and 15.5%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>