Will TripAdvisor (TRIP) Beat Q3 Earnings Estimates?
We expect online travel research company TripAdvisor Inc. (TRIP) to beat expectations when it reports the third-quarter 2014 results on Nov 4.
Why a Likely Positive Surprise?
Our proven model shows that TripAdvisor is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +5.9%. This is a meaningful and leading indicator of a likely positive earnings surprise for the shares.
Zacks Rank: TripAdvisor has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of TripAdvisor’s Zacks Rank #3 and +5.9% ESP makes us reasonably confident of a positive earnings beat.
What is Driving the Better-than-Expected Earnings?
TripAdvisor’s strong fundamentals, focus on improving its mobile products, expansion into international restaurant reservation space and improvement in traffic and hotel shoppers are expected to result in a positive earnings surprise in the upcoming quarter.
TripAdvisor recently acquired LaFourchette and Vacation Home Rentals which increased page views per visitor since users now spend more time on its website. The company is striving to help consumers make their travel decisions easy and fruitful based on the experiences of other travelers. Given its expanding user base, improving margins and increasing monetization of social and mobile platforms, TripAdvisor is well positioned to deliver strong results. We believe the company’s growth strategies and solid execution will help it to continue to grow.
Other Stocks to Consider
TripAdvisor is not the only firm looking up this earnings season. We also see likely earnings beats coming from these companies:
Spirit AeroSystems Holdings, Inc. (SPR), with an Earnings ESP of +1.33% and a Zacks Rank #1 (Strong Buy).
AmSurg Corp. (AMSG), with an Earnings ESP of +18.52% and a Zacks Rank #1.
Henry Schein, Inc. (HSIC), with an Earnings ESP of +1.53% and a Zacks Rank #1.
Read the Full Research Report on AMSG
Read the Full Research Report on HSIC
Read the Full Research Report on SPR
Read the Full Research Report on TRIP
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