U.S. markets close in 3 hours 31 minutes
  • S&P 500

    3,860.09
    -65.34 (-1.66%)
     
  • Dow 30

    31,596.47
    -365.39 (-1.14%)
     
  • Nasdaq

    13,253.74
    -344.22 (-2.53%)
     
  • Russell 2000

    2,237.02
    -47.36 (-2.07%)
     
  • Crude Oil

    63.34
    +0.12 (+0.19%)
     
  • Gold

    1,778.20
    -19.70 (-1.10%)
     
  • Silver

    27.84
    -0.09 (-0.32%)
     
  • EUR/USD

    1.2235
    +0.0067 (+0.55%)
     
  • 10-Yr Bond

    1.4530
    +0.0640 (+4.61%)
     
  • GBP/USD

    1.4085
    -0.0056 (-0.40%)
     
  • USD/JPY

    106.2370
    +0.3550 (+0.34%)
     
  • BTC-USD

    50,232.40
    +670.15 (+1.35%)
     
  • CMC Crypto 200

    1,004.89
    +10.22 (+1.03%)
     
  • FTSE 100

    6,651.96
    -7.01 (-0.11%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     

TripAdvisor (TRIP) Misses Q1 Earnings & Revenue Estimates

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

TripAdvisor Inc. TRIP reported adjusted first-quarter 2020 earnings of 7 cents per share, missing the Zacks Consensus Estimate of 12 cents. Also, the reported earnings decreased 81% from the year-ago quarter.

Revenues in the first quarter were $278 million, missing the Zacks Consensus Estimate by 3.6%. Also, the top line was down 26% year over year.

Revenue Segments

Starting first-quarter 2019, TripAdvisor revised the reporting structure into three segments: Hotels, Media & Platform, Experiences & Dining, and Other.

Revenues of $169 million (accounting for 61% of total revenues) from the Hotels, Media & Platform segment were down 33% from the year-ago quarter.

Revenues of $83 million from the Experiences & Dining segment, which accounted for 30% of total revenues, grew 4% year over year. The company will likely continue to invest in supply and marketing to accelerate E&D products, as well as drive attractive returns in the long run.

The Other segment contributed the remaining 9% to total revenues. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $26 million, down 38% from the year-ago quarter.

TripAdvisor Inc Price, Consensus and EPS Surprise

 

TripAdvisor Inc Price, Consensus and EPS Surprise
TripAdvisor Inc Price, Consensus and EPS Surprise

TripAdvisor Inc price-consensus-eps-surprise-chart | TripAdvisor Inc Quote

Operating Results

TripAdvisor’s adjusted operating expenses of $254 million were down 13.3% from $293 million a year ago. Operating margin was (9.7%) in the first quarter versus 8.2% in the year-ago period.

On a GAAP basis, the company recorded net loss of $16 million or loss of 12 cents per share versus net income of $26 million or earnings of 18 cents in the prior-year quarter.

Balance Sheet & Cash Flow

TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $798 million, up from $319 million recorded in the fourth quarter. During March, the company borrowed $700 million from the revolving credit facility in a bid to enhance liquidity.

Accounts receivables were $159 million, down from $183 million in the fourth quarter.

Cash flow from operations was ($70) million versus $59 million in the fourth quarter. Capex was $20 million, down from $22 million in the fourth quarter. Free cash flow was ($90) million in the first quarter.

Zacks Rank & Stocks to Consider

Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Akamai Technologies, Inc. AKAM, Inuvo, Inc. INUV and Shopify Inc. SHOP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Akamai, Inuvo, and Shopify is currently projected at 12.3%, 30% and 25.8%, respectively.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Akamai Technologies Inc (AKAM) : Free Stock Analysis Report
 
TripAdvisor Inc (TRIP) : Free Stock Analysis Report
 
Inuvo Inc (INUV) : Free Stock Analysis Report
 
Shopify Inc (SHOP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research