The 10-second takeaway
For the quarter ended June 30 (Q2), TripAdvisor beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins shrank, net margins grew.
TripAdvisor reported revenue of $246.9 million. The 21 analysts polled by S&P Capital IQ anticipated a top line of $236.7 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $197.1 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 $0.52. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. Non-GAAP EPS of $0.52 for Q2 were 27% higher than the prior-year quarter's $0.41 per share. GAAP EPS of $0.46 for Q2 were 24% higher than the prior-year quarter's $0.37 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 98.3%, 20 basis points worse than the prior-year quarter. Operating margin was 38.1%, 430 basis points worse than the prior-year quarter. Net margin was 27.1%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $258.1 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $937.7 million. The average EPS estimate is $1.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 184 members out of 202 rating the stock outperform, and 18 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 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 $58.16.
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