Cantor Previews TripAdvisor's Earnings
In a report published Tuesday, Cantor Fitzgerald analysts maintained a Hold rating on Tripadvisor Inc (NASDAQ: TRIP), with a price target of $84, saying that they expect the company to report in-line 1Q results.
The company is scheduled to reports its quarterly results on May 6. Expedia Inc (NASDAQ: EXPE) has announced healthy growth in its 1Q room nights and this is "a positive read-across on travel demand during the quarter," the analysts said.
Tripadvisor is expected to report revenue of $375M, representing 33 percent y/y growth, EBITDA of $149M and normalized EPS (NEPS) of $0.62.
Although the company's performance is likely to have been impacted by currency headwinds, its "ongoing efforts to improve traffic monetization (via mobile instant book, meta, restaurant bookings, and attractions) should have a net positive impact on 1Q results, in our view," the analysts wrote.
Continued strength in subscription and other revenues could result in the company reporting 99 percent y/y growth to $83.5M, driven by listings, vacation rentals, and transaction revenues, and including contribution from the La Fourchette acquisition. Display ad revenue is estimated to have risen 13 percent y/y to $36.2M.
In the report, Cantor Fitzgerald noted, "…we expect management to update current outlook for high-20% revenue growth and low-to mid-teens EBITDA growth in 2015. Consensus is at 27% and 14% Y/Y, respectively. Relevant topics for discussion on the call include growth in instant book, attractions and vacation-rental listings, and meta-search monetization."
Latest Ratings for TRIP
|Feb 2017||Cowen & Co.||Downgrades||Market Perform||Underperform|
|Jan 2017||Citigroup||Initiates Coverage On||Neutral|
|Dec 2016||CLSA||Initiates Coverage On||Underperform|
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