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What's in the Offing for TripAdvisor's (TRIP) Q1 Earnings?

Zacks Equity Research

TripAdvisor, Inc. TRIP is set to report first-quarter 2019 results on May 8.

Notably, the company topped the Zacks Consensus Estimate in three of the trailing four quarters, recording average positive earnings surprise of 33.96%.

In the last reported quarter, TripAdvisor, which recorded earnings of 27 cents per share, delivered a negative surprise of 10%. The bottom line decreased 62.5% sequentially but increased 350% from the year-ago quarter.

Revenues in the fourth quarter were $346 million, surpassing the Zacks Consensus Estimate by 0.49%. The top line was up 7% year over year but down 24% sequentially.

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at 51 cents per share and the same for revenues is $463.7 million.

Top-line growth is expected to be driven by the company’s robust non-hotel segment and increasing average monthly unique visitors.

Let’s see how things are shaping up prior to the upcoming results.

Factors to Drive Growth

TripAdvisor’s well-performing non-hotel business, which includes revenues from attractions, restaurants and vacation rental businesses, has emerged as a key catalyst over the last few quarters. The trend is expected to continue, with strong contributions in the to-be-reported quarter.

The segment is likely to drive the top line in the first quarter with the help of the ongoing shift from offline to online system in the market place.

Expanding footprint in the international restaurant reservation space will aid revenue generation of this particular segment in the quarter to be reported and beyond.

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

Notably, all these factors are likely to benefit the company’s results in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Currently, TripAdvisor has a Zacks Rank #3 and an Earnings ESP of +15.51%, which makes us reasonably confident about a positive earnings surprise.

TripAdvisor, Inc. Price and EPS Surprise


TripAdvisor, Inc. Price and EPS Surprise | TripAdvisor, Inc. Quote

Other Stocks That Warrant a Look

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

Agilent Technologies, Inc. A has an Earnings ESP of +2.10% and a Zacks Rank #2.

MongoDB, Inc. MDB has an Earnings ESP of +0.69% and a Zacks Rank 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Neon Therapeutics, Inc. NTGN has an Earnings ESP of +17.93% and a Zacks Rank #3.

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