What happened
Shares of Trip.com Group (TCOM 0.72%), a Chinese travel company, spiked today after the company reported its first-quarter results. Trip.com's bottom-line results matched up with analysts' consensus estimate, while its top line beat Wall Street's expectations.
The travel stock was up by 14.1% as of 12:29 p.m. ET.
So what
Trip.com reported a non-GAAP (adjusted) loss of $0.01 per share in the quarter, which was an improvement from a loss of $0.05 in the year-ago quarter and on par with analysts' consensus bottom-line estimate for the quarter.
Image source: Getty Images.
Investors were also happy to see that the company's revenue of $649 million -- essentially flat from the year-ago quarter -- easily outpaced Wall Street's average estimate of $575 million.
The company said in its press release that staycation travel was "a major contributor to the recovery of the Chinese domestic market" with hotel booking increasing 20% year over year. Management also highlighted that airline ticket bookings on its global platforms increased by 270% from the year-ago quarter.
"Though it was challenging for domestic travel due to the COVID-19 resurgence in China during the first quarter, our results demonstrated our resilience amid a confluence of challenges and uncertainties," Trip.com CEO Jane Sun said in a press release.
Now what
The company's strong results in the first quarter came at a time when China is easing some of its COVID-related travel restrictions.
The combination of the two is likely helping to fuel the company's share price surge today, which has resulted in Trip.com's stock gaining nearly 14% year to date.
