Travel Site Trip Advisor Stock Flies 22% After Earnings

Online travel site Trip Advisor  reported better than expected first quarter earnings Tuesday. $TRIP stock soared after hours over 18% as non Hotel revenues grew 36%.

Online travel site Trip Advisor reported better than expected first quarter earnings Tuesday. $TRIP soared over 18% hours Pre Market as non-hotel revenues grew 36%.

Trip Advisor Airport

Earnings:

Net income of $5 million, or 4 cents a share, compared with $13 million, or 9 cents a share a year-ago. Adjusted earnings 30 cents a share. Revenue rose to $378 million from $372 million a year-ago. Earnings beating analysts surveyed by FactSet with 16 cents a share on revenue of $360.9 million.

Tripadvisor Inc NASDAQ: $TRIP

Market Reaction > Close 47.62 +8.84 (+22.80%)

Highlights

  • A 36% growth in non-hotel revenues.
  • A 5% decline in revenue of its core-hotel business 
  • The non-hotel business accounted for just 9% of total revenue in 2014, now is over 23% of the company’s total revenue.
  • Average monthly unique visitors on TripAdvisor-branded websites and apps grew 12% year-over-year to approx 433 million,
  • Average monthly unique hotel shoppers remained flat year-over-year at about 149 million.

“We are expanding our global platform for the benefit of users and partners and we are executing along our key product, supply and marketing initiatives that position our business for long-term profitable growth,” said CEO Steve Kaufer.

Analysts Reaction 

Jefferies analyst Brent Thill  held underperform rating and $27 price target intact, Notes ting TripAdvisor’s beat was “driven by foreign exchange, not fundamentals.” Thill said that the company saw strong performance in its non-hotel segment but thinks TripAdvisor “would have a hard time executing a full turnaround within one year.”

Piper Jaffray’s Michael Olson raised the price target $2 to $49, but maintained his neutral rating. “We continue to have confidence in the company’s ability to better monetize its user base longer-term,” he wrote.

 TripAdvisor first quarter earnings

About TripAdvisor

TripAdvisor® is the world’s largest travel site*, enabling travelers to make the most of every trip. TripAdvisor offers advice from millions of travelers, with 500 million reviews and opinions covering 7 million accommodations, restaurants and attractions, and a range of travel choices and planning features — checking more than 200 websites to help travelers find and book today’s lowest hotel prices. TripAdvisor branded sites make up the largest travel community in the world, reaching 390 million average unique monthly visitors** in 49 markets worldwide.

Source: Trip Advisor, Alpha Street

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