Tripadvisor (TRIP) Stock: Soars On Earnings, But Analysts Not Impressed

TripAdvisor TRIP stock newsTripadvisor Inc Common Stock (NASDAQ: TRIP) is having an overwhelmingly positive start to the trading session this morning, and for good reason. The company released its earnings for the first quarter, blowing away expectations and exciting investors. Of course, this led the stock on a run for the top. However, analysts don’t seem to be impressed. Today, we’ll talk about:

  • The financial results;
  • how analysts reacted;
  • what we’re seeing from TRIP;
  • and what we’ll be watching for ahead.

TRIP Heads Up On Financial Results

As mentioned above, TripAdvisor is having an incredibly strong start to the trading session this morning after reporting its financial results for the first quarter. Here’s what we saw from the report:

  • Earnings – In terms of earnings, TRIP did incredibly well. During the first quarter, the company generated a profit of $5 million. That works out to $0.04 per share. On an adjusted basis, earnings came in at $0.30 per share. This figure absolutely blew away analyst expectations of just $0.16 per share.
  • Revenue – Revenue also proved to be a strong point for the company. During the quarter, analysts expected that revenue would come in at $360.8 million. However, the company actually reported revenue in the amount of $378 million.

While the earnings report proved to be overwhelmingly positive, analysts don’t seem to be impressed. According to FactSet, none of the analysts weighing in on the stock have changed their ratings following the strong earnings report. In fact, analysts are warning that the beat on earnings was driven by foreign exchange, not fundamental data. As such, there’s no reason to be excited here. Nonetheless, investors are indeed excited.

What We’re Seeing From The Stock 

As investors, one of the first lessons that we learn is that the news moves the market. In the case of TripAdvisor, the news proved to be overwhelmingly positive. While analysts are pointing to factors that suggest that the gains won’t continue, investors are looking at the report and happy with what they see. This can bee seen in the gains that we’re seeing on the stock this morning. At the moment (11:05), TRIP is trading at $47.35 per share after a gain of $8.57 per share or 22.10% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on TRIP. In particular, we’re interested in following the company to see if growth continues or if analysts are correct and this will prove to be nothing more than a blip on the screen. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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