TripAdvisor Needs a Vacation After These Earnings

TripAdvisor Inc. (NASDAQ: TRIP) reported its first-quarter financial results after the markets closed on Tuesday. The company posted $0.36 in earnings per share (EPS) and $376 million in revenue, while consensus estimates had called for $0.31 in EPS and $387.23 million in revenue. In the same period of last year, it said it had EPS of $0.30 on $378 million in revenue.

For the most recent quarter, the firm said that it had 490 million average monthly unique visitors, with roughly 60% coming from its mobile platform.

In terms of its segments, the firm reported as follows:

  • Hotels, Media & Platform revenues were relatively flat year over year at $254 million.
  • Experiences & Dining revenues increased 29% to $80 million.
  • Other revenues decreased 33% to $42 million.

In its prepared remarks, the firm noted that though its first-quarter Hotels, Media & Platform segment revenue was flat, management estimates that, excluding year-over-year changes in foreign currency, Hotels, Media & Platform segment revenue and adjusted EBITDA grew by roughly 3% and 43%, respectively.

At the same time, the firm observed softer than expected international demand in the first quarter, and these ongoing trends make management cautious about second-quarter auction growth, though management continues to believe auction trends will improve in the second half of the year

Shares of TripAdvisor were last seen down about 15% at $46.76, in a 52-week range of $43.40 to $69.00. The consensus price target is $56.14.