Tripadvisor Inc. (TRIP: NSD) stock surged 12% on Monday following strong Q3 results, as sales and earnings surpassed analyst expectations. The company’s quarterly sales rose 16% to $397 million, beating analysts’ expectations of $388 million. Tripadvisor’s adjusted earnings per share came in at $0.93, also beating analysts’ expectations of $0.89.
Tripadvisor is a leading online travel platform with a strong brand and a loyal customer base. The company is also benefiting from the rebound in travel demand and its investments in new products and services. Tripadvisor is a well-positioned company to benefit from the continued growth of the travel industry.
Key Findings from the 3rd Quarter Report:
- Tripadvisor’s Q3 sales rose 16% to $397 million, beating analysts’ expectations of $388 million.
- Tripadvisor’s adjusted EPS came in at $0.93, also beating analysts’ expectations of $0.89.
- Hotel bookings revenue rose 20% to $268 million.
- Restaurant bookings revenue rose 14% to $51 million.
- Experiences and rentals revenue rose 38% to $77 million.
Tripadvisor Stock Q3 Earnings Analysis:
Tripadvisor’s strong Q3 results were driven by a rebound in travel demand as the COVID-19 pandemic continues to subside. The company’s hotel bookings revenue, which is its largest source of revenue, rose 20% in the quarter. Tripadvisor’s restaurant bookings revenue and experiences and rentals revenue also grew strongly.
Tripadvisor is also benefiting from its investments in new products and services. For example, the company’s Trips platform, which allows users to book entire trips, is gaining traction. Tripadvisor is also expanding its reach into new markets, such as Asia.
Tripadvisor is optimistic about the outlook for the travel industry in 2024 and beyond. The company expects its sales to grow in the mid-teens to high-teens in 2024. Tripadvisor is also targeting adjusted EPS of $4.00 to $4.50 in 2024.
Conclusion:
Tripadvisor has a strong brand, a loyal customer base, and a diversified business model. Moreover, it is also expanding its reach by investing in new products and services and exploring new markets. So, if you are looking to capitalize on the growth of the travel industry might find Tripadvisor stock to be a solid investment.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
