) is set to report second-quarter fiscal 2014 results on Jul 23.
Last quarter, the company posted a 4.4% positive surprise. Let's
see how things are shaping up for this announcement.
Factors to Consider this Past Quarter
TripAdvisor's first-quarter earnings of 48 cents beat the Zacks
Consensus Estimate by a couple of cents on the back of improved
global travel market. Also, revenues of $281.0 million were up
sequentially as well as from the year-ago period, driven by
continued strong hotel shopper growth, increased ad rates and
strength across product suite.
However, operating margin of 34.2% was down 410 basis points year
over year due to higher expenses incurred in the quarter.
The company's strong fundamentals, focus on improving its mobile
products, expansion into international restaurant reservation space
and improvement in traffic and hotel shoppers drove strong results
in the last quarter.
Our proven model does not conclusively show that TripAdvisor will
beat earnings this quarter. That is because a stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
: Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 53 cents. Hence, the difference is 0.00%.
: TripAdvisor's Zacks Rank #3 (Hold) when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
You could consider other stocks with a positive Earnings ESP and a
favorable Zacks Rank such as:
), with an Earnings ESP of +2.08% and a Zacks Rank #1 (Strong Buy).
), with an Earnings ESP of +3.08% and a Zacks Rank #1.
), with an Earnings ESP of +3.13% and a Zacks Rank #2 (Buy).
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