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TripAdvisor (TRIP) Q1 Earnings Miss Mark, Revenues Fall Y/Y

TripAdvisor TRIP reported adjusted first-quarter 2021 loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents. The company reported earnings of 7 cents per share in the year-ago quarter.

Revenues of $123 million lagged the consensus mark by 2.8% and declined 65% year over year.

For January, February and March, monthly unique users on TripAdvisor sites were approximately 53%, 56%, and 58%, respectively.

Quarter Details

TripAdvisor reports revenues in three segments: Hotels, Media & Platform, Experiences & Dining, and Other.
 

TripAdvisor, Inc. Price, Consensus and EPS Surprise

TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote

 

Hotels, Media & Platform segment revenues (71.5% of revenues) were $80 million, down 48% year over year. Revenues from TripAdvisor-branded hotels plunged 46% to $74 million. Moreover, TripAdvisor-branded display and platform declined 56.3% year over year to $14 million.

Experiences & Dining segment revenues (22.8% of revenues) were $28 million, down 66.3% year over year.

Other revenues (5.7% of revenues) were $7 million, down 73.1% year over year. This segment includes revenues from rentals, SmarterTravel, Flights/Cruise and TripAdvisor China.

TripAdvisor’s operating expenses (selling & marketing, technology & content, and general & administrative) of $166 million were down 32.2% year over year.

Operating loss was $84 million for the first quarter compared with loss of $27 million in the year-ago period.

Balance Sheet

As of Mar 31, 2021, cash and cash equivalents were $674 million, up from $418 million reported as of Dec 31, 2020.

Total debt as of Mar 31, 2021, was $831 million compared with $491 million as of Dec 31, 2020.

Guidance

For the second quarter of 2021, TripAdvisor expects revenues and adjusted EBITDA to improve sequentially.

Zacks Rank & Stocks to Consider

TripAdvisor currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader retail sector include American Eagle Outfitters AEO, Foot Locker FL and L Brands LB. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

L Brands, Foot Locker and American Eagle Outfitters and are set to report their earnings results on May 19, 20 and 26, respectively.

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