TripAdvisor (TRIP) reported third-quarter results Thursday that smashed earnings estimates but slightly missed on revenue. TripAdvisor stock soared on the news.
A web travel site, TripAdvisor earnings came in at an adjusted 72 cents per share, soundly beating the average estimate of analysts polled by Zacks Investment Research for 47 cents. TripAdvisor earnings doubled from the year-ago period. It reported revenue of $458 million — up 4% and below analyst views for $468 million.
TripAdvisor stock rocketed 17.5% higher, to 68.22, during morning trading on the stock market today.
“What we worry about most for TripAdvisor is that Booking Holdings (BKNG) and Expedia (EXPE) will step up marketing spending in 2019,” Needham analyst Laura Martin wrote in a note to clients. “Expedia and Booking will each report over $5 billion of marketing spending in 2018 compared with TripAdvisor’s total revenue of $1.6 billion, which makes it hard for it to compete in the hotel business.”
Martin maintained a hold rating on the company. TripAdvisor stock is up 80% this year.
The company is a leading provider of online travel services, covering accommodations, airlines and restaurants. It also has more than 702 million user reviews.
Hotel revenue for the quarter was $305 million, down 2% from the year-ago period.
Booking, formerly known as Priceline, reported third-quarter earnings after the market close Monday that matched revenue estimates but fell short on earnings.
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