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What's in the Offing for TripAdvisor's (TRIP) Q3 Earnings?

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TripAdvisor, Inc. TRIP is set to report third-quarter 2019 results on Nov 7. It delivered a negative earnings surprise of 13.46% in the last reported quarter.

The company topped the Zacks Consensus Estimate in two of the last four quarters, with average positive earnings surprise of 11.47%.

Performance in the Last Reported Quarter

TripAdvisor reported adjusted second-quarter 2019 non-GAAP earnings of 45 cents per share, which missed the Zacks Consensus Estimate by 7 cents but increased 9.8% from the year-ago period.

Revenues of $422 million missed the Zacks Consensus Estimate of $447 million and decreased 17.6% on a year-over-year basis.

Let’s see how things have shaped up prior to the upcoming results.

TripAdvisor, Inc. Price and EPS Surprise


Factors to Drive Growth

TripAdvisor’s Experiences & Dining segment is expected to have performed well in the to-be-reported quarter. The company has been making efforts to invest in supply and marketing to accelerate E&D products. This is likely to have continued in the third quarter and driven attractive returns from this segment.

TripAdvisor’s expanding footprint in the international restaurant reservation space and improved cost-control methods are expected to have driven margins in the quarter to be reported.

In addition, expansion of the company’s mobile product portfolio on a constant basis is likely to have driven growth of the Mobile platform in the to-be-reported quarter. Accelerating number of mobile hotel shoppers on TripAdvisor’s website, which bodes well for growing mobile initiatives, is expected to have aided the performance of the hotel segment.

However, increasing marketing investments and rising competition may reflect on the company’s results in the quarter to be reported. Also, weakness and ongoing challenges in the Hotels, Media & Platform segment might have affected its top line in the quarter.

For the third quarter, the Zacks Consensus Estimate for earnings per share is pegged at 69 cents, indicating a decline of 4.17% from the year-ago period.

The Zacks Consensus Estimate for revenues is currently pegged at $468.9 million, indicating growth of 2.38% from the year-ago quarter.

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. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of -2.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, TripAdvisor has a Zacks Rank #3.

Stocks That Warrant a Look

Here are a few stocks worth considering, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Mettler-Toledo International, Inc. MTD has an Earnings ESP of +0.35% and a Zacks Rank of #3.

Target Corporation TGT has an Earnings ESP of +5.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

CSX Corporation (CSX - Free Report) has an Earnings ESP of +0.21% and a Zacks Rank #3.

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