Close

TripAdvisor (TRIP) falling 23% on soft outlook is an 'overreaction', says Bernstein

November 8, 2022 8:36 AM EST
Get Alerts TRIP Hot Sheet
Price: $27.32 +1.19%

Rating Summary:
    11 Buy, 29 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 26 | New: 20
Join SI Premium – FREE

TripAdvisor (NASDAQ: TRIP) stock is trading well over 20% lower in pre-open after the company reported its third-quarter results and offered weak guidance.

TripAdvisor posted a Q3 EPS of $0.28, easily missing the analyst estimate of $0.38. Revenue for the quarter came in at $459 million, beating the consensus estimate of $443.84 million. The travel company generated a free cash flow of $46 million to crush the analyst estimate that was calling for an outflow of $103 million.

For its fourth quarter, TRIP expects its revenue to be up low-single digit from 2019 and to show a “modest slowdown” from the previous quarter.

“Consolidated adjusted EBITDA margin to step down sequentially to close to 10% of revenue, a result of the seasonal step down, a mix shift towards our lower margin growth revenue lines, and the increased investment in Viator,” the company further stated.

Bernstein analyst Richard Clarke said TRIP delivered a “strong quarter,” which was offset by a soft outlook due to a higher-than-expected Viator investment. While he says the after-hours move in TripAdvisor shares is “a bit of an overreaction”, the results clearly show “the honeymoon period is clearly over.”

By Senad Karaahmetovic



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Earnings, Guidance, Hot Comments, Hot Earnings, Hot Guidance, Hot List, Management Comments

Related Entities

Sanford C. Bernstein, Pre Market Movers, Senad Karaahmetovic