TripAdvisor Books Positive Earnings Results
TripAdvisor Inc (
) announced earnings after the bell today, posting an EPS of
$0.15, slightly beating the Zacks Consensus Estimate of $0.14,
and Revenues of $212.7 million, surpassing the Zacks Revenue
Estimate of $204.96 million. This is the fifth consecutive
quarter with a positive earnings surprise by this company.
Over the past few quarters TripAdvisor has been focusing on
improving its mobile products, and has seen the fourth quarter
web traffic increase 50% year over year. Moreover, the company
just launched their new meta-display platform; which allows
customers to compare hotel pricing, and availability information
from top advertisers on the TripAdvisors website itself.
This new platform has allowed the company to increase their AD
rates, which has helped the top line revenues grow 26% compared
to Q4 2012.
On the negative, there has been whispers regarding
), and their potential of entering the Online Travel
market. In a recent interview, Ryanair CEO Michael O'Leary
touched on a "new pricing system partnership" with Google.
Currently, Google has both an airline search mechanism, and
booking services in the USA, and the UK. Furthermore, the
internet giant has also ran a hotel finder service since
2011. While the speculation is that Google will eventually
enter into the market, they would have to compete with two of the
biggest advertisers on Google,
). Unfortunately, for TripAdvisor, they derive slightly
less than one third of their business from Expedia.
In afterhours trading, TRIP has been fluctuating from an increase
just over 2% to a half percent. We do note that on February
6th Expedia announced earnings, which saw TripAdvisor shares jump
just over 9%. It appears, in afterhours trading, that
TRIP's positive earning numbers were somewhat already priced into
Expedia's strong earnings announcement.
Tomorrow Zacks will post a full earnings report on TripAdvisor
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