Oppenheimer Sees TripAdvisor's Lower Expectations Likely Already Baked In

Jed Kelly of Oppenheimer isn't particularly bullish on Tripadvisor Inc TRIP heading into its first-quarter results, which are scheduled for May 4.

Kelly stated that while Tripadvisor "remains one of the most valuable and innovative assets in all of travel," there are "limited near-term catalysts" from Instant Booking's rollout. As such, investors should wait to become more constructive.

Related Link: Vetr Top Raters Get Bullish On TripAdvisor

Kelly offered several key points investors should look out for in the company's quarterly print and subsequent conference call:

• 1. Questions should focus on Instant Booking's monetization, especially around conversion improvement and repeat usage.
• 2. As of last quarter, smartphones were monetizing at 30 percent of desktop but are driving a large portion of hotel shopper growth.
• 3. Tripadvisor's management guided its hotel revenue to decelerate at a "meaningful" pace.
• 4. Higher advertising spending could pressure industry advertising margins.
• 5. Bottom line, the analyst's revenue estimates is 2 percent below the Street's, margins are 9 percent below the Street's estimates and EBITDA is 3 percent below the Street's estimates.

Shares of TripAdvisor were reiterated at a Perform rating with no assigned price target.