TripAdvisor Earnings: Here’s Why Investors are Excited Now

TripAdvisor (NASDAQ:TRIP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 14.49%.

TripAdvisor Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.83% to $0.52 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Rose 25.23% to $246.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TripAdvisor reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.49. It beat the average revenue estimate of $236.64 million.

Quoting Management: “There was a lot for TripAdvisor fans to be excited about during the second quarter,” said Steve Kaufer, President & CEO of TripAdvisor. “Our strong financial performance was driven by continued traffic growth. We also kicked off our first-ever offline ad campaign to enhance brand awareness. Perhaps most notably, we bid ‘adieu’ to pop-ups and rolled out our new hotel metasearch display, which makes it easier for travelers to find a great hotel as they plan their perfect trip.”

Key Stats (on next page)…

Revenue increased 7.39% from $229.92 million in the previous quarter. EPS increased 4% from $0.50 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.46. For the current year, the average estimate is a profit of $1.73, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)