Travel Site Trip Advisor $TRIP Follows Priceline, Crushed 10% After Earnings Miss

Online travel site Trip Advisor $TRIP reported worse than expected third quarter earnings Monday following its online travel competitor Priceline $PCLN lower after softer guidance. $TRIP sold off sharply after hours to be down 10%.

Online travel site Trip Advisor $TRIP reported worse than expected third quarter earnings Monday following its online travel competitor Priceline $PCLN lower after softer guidance. $TRIP sold off sharply after hours to be down 10%.

Trip Advisor Airport

Earnings: 3Q17 earnings of $25 million, or 18 cents a share, on revenue of $439 million, up from $421 million a year ago.  After adjustments for stock-based compensation and other effects, the company reported earnings of 36 cents a share. $TRIP missed on revenue with analysts looking for adjusted earnings of 35 cents a share on sales of $451 million, according to FactSet.

Reaction: Trip Advisor Inc NASDAQ: TRIP · $36.29 ▼ 3.24 (8.20%)

Earlier Competitor Online Travel Group Priceline International Revenue Surges But Guides Lower also sending $PCLN down 6.5%

“We are making progress on our 2017 initiatives,” . “In Hotels, we are pursuing profitable long-term revenue growth through an improved shopper experience and a marketing shift to brand-building channels. In Non-Hotels, we are investing to increase our lead, particularly in Attractions, as we broaden our marketplace and further deepen traveler engagement in more moments on their trip said Chief Executive Officer Steve Kaufer

 

Source:AlphaStreet

Guidance:

”Recent partner bidding trends and our re-allocation of dollars away from online channels with short-term payback will cause click-based and transaction revenue growth to slow further in Q4,” Trip Advisor said in a statement.

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: comScore Media Metrix for TripAdvisor Sites, worldwide, November 2016 **Source: TripAdvisor log files, Q3 2016

Source: Trip Advisor: http://files.shareholder.com/downloads/AMDA-MMXS5/5519347704x0x962893/8682F184-6B22-4BC8-B1F8-3C9B6D8CF28A/TripAdvisor_Reports_Third_Quarter_2017_Financial_Results.pdf

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