TripAdvisor Inc. TRIP reported adjusted third-quarter 2018 earnings of 72 cents per share, surpassing the Zacks Consensus Estimate by 25 cents. Also, earnings increased 75.6% sequentially and 100% from the year-ago quarter.
Revenues in the third quarter were $458 million, lagging the Zacks Consensus Estimate of $468 million. However, quarterly revenues were up 4.3% year over year.
On a year-to-date basis, the stock has outperformed the industry it belongs to. It has gained 68.5% compared with the industry 's growth of 2.1% in the said period.
TripAdvisor reports revenues under two segments: Hotel and Other.
Revenues of $305 million (accounting for 67% of its total revenues) from the Hotel segment decreased 2% from the year-ago quarter. This segment includes click, display, subscription and transaction-based revenues from hotels, air and cruise, and also comprise sales from the company's largest subsidiary, SmarterTravel, as well as operations in China.
Revenues of $153 million from the Non-Hotel segment increased 20% year over year and contributed the remaining 33% of its total revenues. This segment includes revenues from attractions, restaurants and vacation rental businesses.
Revenues by Source
Revenues of $194 million (accounting for 42% of the total revenues) from Click-based and transaction decreased 1% from the year-ago quarter. Revenues from Display-based advertising increased 7% year over year to $81 million and brought home 18% of the total revenues. The other hotel revenue component contributed $30 million, down 27% from the year-ago quarter.
Average monthly unique visitors grew 8% from the prior-year quarter to approximately 490 million.
Average monthly unique hotel shoppers decreased 5% year over year to approximately 160 million.
TripAdvisor's adjusted operating expenses of $318 million were down 9.1% from $350 million a year ago. Per the press release, operating margin of 19.4% was up 980 basis points from the year ago-quarter.
On a GAAP basis, the company's net income was $69 million or 49 cents per share compared with $25 million or 18 cents in the prior-year quarter.
Balance Sheet & Cash Flow
TripAdvisor exited the quarter with cash, cash equivalents and short-term investments of roughly $663 million, down from $678 million recorded in the last reported quarter. Accounts receivables were $237 million, down from $300 million in the second quarter.
Cash flow from operations was $14 million, decreasing from $186 million in the last reported quarter. Capex was $15 million, down from $16 million in the second quarter.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. Price, Consensus and EPS Surprise | TripAdvisor, Inc. Quote
Zacks Rank and Stocks to Consider
Currently, TripAdvisor has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are boohoo group plc BHOOY , QuinStreet, Inc. QNST and AMETEK, Inc. AME , 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 rate for boohoo group, QuinStreet and AMETEK is currently pegged at 25%, 25% and 10.97%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BOOHOO COM PLC (BHOOY): Free Stock Analysis Report TripAdvisor, Inc. (TRIP): Free Stock Analysis Report QuinStreet, Inc. (QNST): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research