Financial Trading Blog
Stock of the day 03/08/2016 – TripAdvisor Inc
Like the rest of the market TripAdvisor had a gory start to 2016; from a starting price of $83.32 the stock had plunged all the way to a 33 month low of $53.49 by the middle of February. A Q4 report inspired lift then left TripAdvisor bouncing between $60 and $66, before briefly breaking out to $71 at the start of June. A swift decline back to $60 by the end of the month was soon overcome across July, leaving the holiday-helper at a current trading price of $69.41 (IT-Finance.com 03/08/2016).
(Source: IT-Finance.com 03/08/2016)
Back in February it was TripAdvisor’s fourth quarter figures that rescued it from that aforementioned 33 month nadir. The company smashed EPS estimates, producing 45 cents per share against the 33 cents forecast, while revealing revenue of $309 million, over $10 million higher than the figure analysts had earmarked.
Cut to the company’s first quarter results at the start of May, however, and the situation was almost exactly the opposite. Earnings per share was far lower than forecast, TripAdvisor managing a mere 32 cents against the 46 cents predicted by analysts, while revenue, at $352 million, missed targets by around $19 million.
In terms of TripAdvisor’s Q2 results on Thursday, analysts are expecting the company to post a near 9% slide in earnings per share to 42 cents off the back of a 0.54% slide in revenue to $402.86 million. Yet as shown above the company has more than proven its ability to surprise analysts and investors alike, with these positive or negative discrepancies between expectations and reality likely to be what sparks any movement from the stock later in the week.
TripAdvisor Inc has a consensus rating of ‘Hold’ with an average target price of $74.
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