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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Seth Jayson owned shares of the following at the time of publication: TripAdvisor. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends TripAdvisor. The Motley Fool owns shares of TripAdvisor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.