The 10-second takeaway
For the quarter ended March 31 (Q1), TripAdvisor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins shrank, net margins grew.
TripAdvisor chalked up revenue of $229.9 million. The 19 analysts polled by S&P Capital IQ expected sales of $224.5 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $183.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. Non-GAAP EPS of $0.50 for Q1 were 43% higher than the prior-year quarter's $0.35 per share. GAAP EPS of $0.43 for Q1 were 23% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 98.4%, 10 basis points worse than the prior-year quarter. Operating margin was 38.4%, 150 basis points worse than the prior-year quarter. Net margin was 27.1%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $237.3 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $936.4 million. The average EPS estimate is $1.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 171 members out of 189 rating the stock outperform, and 18 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give TripAdvisor a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TripAdvisor is hold, with an average price target of $45.84.
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