SunTrust Reduces TripAdvisor's Earnings Estimates

SunTrust technology analyst Bob Peck reduced earnings expectations for Tripadvisor Inc TRIP by 4 percent as the firm changed its view on TripAdvisor's seasonality. Specifically, SunTrust said it expects a "more normal seasonal pattern," with revenues higher in Q2 and Q3 before dipping in Q4 and Q1 again.

Peck also pointed to recent acquisition costs as a reason that Q1 earnings would be below Street expectations. TripAdvisor is also expected to up its advertising budget, adding $12 million in ad expenses versus last year.

SunTrust's Q1 earnings expectations are 14 percent below the Street at $121 million versus $141 million. By Q3, SunTrust expects that difference to be more than made up, with earnings 21 percent above the consensus.

TripAdvisor gained 10.5 percent this year. Over the past 52-weeks, the price has lost 3.7 percent.

In Monday's pre-market trading, prices were lower by 0.6 percent to $82.03.