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TripAdvisor (TRIP) Beats Q4 Earnings & Revenue Estimates

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TripAdvisor Inc. (TRIP - Free Report) reported adjusted fourth-quarter 2020 earnings of 38 cents per share, surpassing the Zacks Consensus Estimate of 34 cents. Also, the reported earnings increased 41% from the year-ago quarter.

Revenues in the fourth quarter were $335 million, surpassing the Zacks Consensus Estimate of $332 million. However, the top line was down 3% year over year.

Revenue Segments

Starting first-quarter 2019, TripAdvisor revised the reporting structure into three segments: Hotels, Media & Platform, Experiences & Dining, and Other.

Revenues of $194 million (accounting for 58% of total revenues) from the Hotels, Media& Platform segment were down 6% from the year-ago quarter.

Revenues of $109 million from the Experiences & Dining segment, which accounted for 33% of total revenues, grew 16% year over year. The company will likely continue to invest in supply and marketing to accelerate E&D products, as well as drive attractive returns in the long run.

The Other segment contributed the remaining 9% to total revenues. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China. Revenues from this segment were $32 million, down 30% from the year-ago quarter.

TripAdvisor, Inc. Price, Consensus and EPS Surprise

 

Operating Results

TripAdvisor’s adjusted operating expenses of $258 million were down 5.5% from $273 million a year ago. Per the press release, operating margin of 6% was also down 40 basis points from the year-ago quarter.

On a GAAP basis, the company’s net income was $15 million or 11 cents per share versus $7 million or 5 cents in the prior-year quarter.

Balance Sheet & Cash Flow

TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $319 million, down from $933 million recorded in the third quarter. Accounts receivables were $183 million, down from $218 million in the third quarter.

Cash flow from operations was $59 million versus $1 million in the third quarter. Capex was $22 million, down from $23 million in the third quarter.

Zacks Rank & Stocks to Consider

Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Itron, Inc. (ITRI - Free Report) , Splunk Inc. and Agilent Technologies (A - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Itron, Splunk, and Agilent is currently projected at 25%, 31.2% and 12.5%, respectively.

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