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What's in the Offing for TripAdvisor's (TRIP) Q2 Earnings?

Zacks Equity Research

TripAdvisor, Inc. TRIP is set to report second-quarter 2019 results on Aug 8.

Notably, the company topped the Zacks Consensus Estimate in three of the trailing four quarters, recording average positive earnings surprise of 16.11%.

In the last reported quarter, TripAdvisor — which recorded earnings of 36 cents per share — delivered a positive surprise of 16.13%. The bottom line increased 33.3% sequentially and 20% from the year-ago quarter.

Revenues in the first quarter were $376 million, missing the Zacks Consensus Estimate of $384 million. Moreover, the top line was down 1% year over year.

For the second quarter, the Zacks Consensus Estimate for earnings per share is pegged at 52 cents and the same for revenues is $448.04 million.

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

TripAdvisor, Inc. Price and EPS Surprise


TripAdvisor, Inc. Price and EPS Surprise

TripAdvisor, Inc. price-eps-surprise | TripAdvisor, Inc. Quote

Factors to Drive Growth

TripAdvisor’s Experiences & Dining segment should perform well in the to-be-reported quarter. The company has been making efforts to invest in supply and marketing to accelerate E&D products and drive attractive returns from this segment.

TripAdvisor’s expanding footprint in the international restaurant reservation space and improved cost-control methods should drive results in the quarter.

Expansion of the company’s mobile product portfolio on a constant basis is likely to drive 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 could impact the company’s results in the quarter to be reported. Also, weakness and ongoing challenges in the Hotels, Media & Platform segment could affect its top line.

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 -10.92%, which makes surprise prediction difficult.

Stocks That Warrant a Look

Here are 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.

JD.com JD has an Earnings ESP of +17.86% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cisco Systems, Inc. CSCO has an Earnings ESP of +1.53% and a Zacks Rank #2.

Ciena CIEN has an Earnings ESP of +5.26% and a Zacks Rank #2.

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