Categories AlphaGraphs, Earnings, Technology

TripAdvisor stock keeps sliding after Q4 earnings miss

Shares of online travel booking company TripAdvisor (TRIP) have been in a downward spiral ever since it reported weaker than expected fourth-quarter earnings on Tuesday. Though total revenues increased year-on-year and came in above the estimates, the hotel segment fell short of expectations.

TripAdvisor Q4 earnings miss
TripAdvisor Q4 2018 earnings infographic

Adjusted earnings surged to $0.27 per share in the fourth quarter from $0.06 per share in the year-ago period, but missed estimates. On an unadjusted basis, the company recorded profit of $7 million or $0.05 per share, compared to a loss of $84 million or $0.60 per share in the fourth quarter of 2017 when profitability was negatively impacted by higher tax expenses. In the most recent quarter, the bottom-line benefited from higher revenues and improved cost management.

Revenues moved up 8% to $346 million in the December quarter from $321 million a year earlier as a 2% drop in hotel revenues was more than offset by a 38% growth in non-hotel revenues. Though the top-line exceeded forecasts, growth was limited by unfavorable changes in foreign currency.

In the fourth quarter, the bottom-line benefited from higher revenues and improved cost management

There was a 2% rise in the average number of monthly unique visitors on TripAdvisor-branded websites. During the three-month period, total applications rose 2% to 490.

The management is forecasting double-digit growth in consolidated adjusted EBITDA for fiscal 2019, supported by a projected improvement in the performance of the hotel segment. Also, the ongoing initiatives to ramp up the Experiences and Restaurants segment through heavy investment are expected to drive long-term revenue growth.

Related: TripAdvisor Q4 2018 Earnings Conference Call Transcript

“Our solid Q4 capped a very strong 2018. We reinvigorated Hotel segment profitability, reinforced our leading positions in Experiences and Restaurants and laid important groundwork for future growth,” said CEO Steve Kaufer.

After falling sharply during the extended trading session Tuesday, TripAdvisor shares continued the downtrend on Wednesday, losing about 6% in the early trading hours. The stock has gained more than 30% since the beginning of the year.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference, and much more!

Most Popular

Thermo Fisher Scientific (TMO) Q4 earnings drop despite higher revenues

Thermo Fisher Scientific Inc. (NYSE: TMO) announced fourth-quarter 2022 financial results, reporting a double-digit fall in adjusted earnings and an increase in revenues. Fourth-quarter revenues increased 7% annually to $11.5

Altria Group (MO) Q4 2022 Earnings: Key financials and quarterly highlights

Altria Group Inc. (NYSE: MO) reported fourth quarter 2022 earnings results today. Net revenues decreased 2.3% year-over-year to $6.1 billion. Net earnings attributable to Altria increased 65.6% to $2.6 billion

AMD Earnings: Advanced Micro Devices Q4 revenue up 16%, profit drops

Semiconductor company Advanced Micro Devices, Inc. (NASDAQ: AMD) reported a decline in fourth-quarter earnings, despite an increase in revenues. Earnings, excluding special items, dropped to $0.69 per share in the

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top