Expect Headwinds To Persist For TripAdvisor
Cantor Fitzgerald said Tripadvisor Inc (NASDAQ: TRIP)’s near-term results would continue to be pressured by headwinds from InstantBook (IB) as well as the continued shift in usage to mobile.
TripAdvisor's Q3
The comments follow TripAdvisor’s tepid third-quarter results, which came in below muted Street expectations. Though non-GAAP EPS of $0.53 topped estimates by a penny, revenue of $421 million missed FactSet’s consensus estimate of $437 million and $114 million EBITDA also fell short of consensus view of $124 million.
The core hotel segment revenue fell 6 percent on a 10 percent decline in TripAdvisor-branded click/transaction-based revenue. Revenue/Hotel shopper also dropped 12 percent.
“While monthly trends in 3Q point to improving trends in monetization (revenue/hotel shopper), we expect the ongoing mix-shift to continue to weigh on the business performance near term,” analyst Naved Khan wrote in a note.
Further, TripAdvisor expects lower EBITDA margins in 2017 as it increases its advertising spend to drive hotel shopper growth.
Analyst's Reactions
As such, Khan cut his fourth quarter revenue/EBITDA/NEPS views to $329 million/$85 million/$0.34 from $353 million/$90 million/$0.36, respectively.
Khan also cut his FY16 revenue/EBITDA/NEPS estimates to $1.493 billion/$379 million/$1.57. Earlier, the analyst expected $1.542 billion in revenue, $409 million in EBITDA and $1.67 in NEPS.
Further, the analyst trimmed his price target to $60 from $67 as he “opt to remain on the sidelines given the execution risks associated with business' transition.”
Khan has a Hold rating on the stock, which is currently down 0.91 percent at $52.14.
Latest Ratings for TRIP
Date | Firm | Action | From | To |
---|---|---|---|---|
Feb 2022 | Credit Suisse | Maintains | Neutral | |
Dec 2021 | JP Morgan | Maintains | Underweight | |
Dec 2021 | UBS | Initiates Coverage On | Neutral |
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Analyst Color Earnings News Guidance Price Target Reiteration Travel Analyst Ratings Best of Benzinga