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TripAdvisor, Pepsi Are S&P Decliners

NEW YORK ( TheStreet) -- Shares of TripAdvisor (TRIP - Get Report) and Pepsi (PEP - Get Report) were among the worst performers on the S&P 500 midday Thursday.

The index was rising 1.82 points to 1,351.78 midday Thursday.

Shares of TripAdvisor fell 16.85% to $28.56 on about three times the stock's average daily trading volume.
TripAdvisor and Pepsi were among the worst S&P 500 performers midday Thursday.

The travel company reported Thursday fourth-quarter earnings of $22 million, an increase of 19% from a year earlier. TripAdvisor's fourth-quarter earnings per share were 16 cents, up 2 cents.

The stock was downgraded Thursday to neutral by analysts at both Susquehanna and Lazard. Lazard previously rated TripAdvisor a buy; Susquehanna had a positive rating on TripAdvisor.

TripAdvisor's 2012 guidance fell below analysts' estimates.

"Due to CPC pressure and 'decluttering' efforts, TripAdvisor issued mid to high teens y/y revenue growth guidance versus Street's expectation of 21% growth," Bank of America Merrill Lynch analysts wrote in a report Thursday. "We are now modeling 2012 revenue/adjusted EBITDA of $751.2mn/$320.4mn from $763.9mn/$335.0mn. Additionally, we are lowering our 1Q12 revenue/adjusted EBITDA estimate to $169.2mn/$74.1mn from $182.4mn/$78.6mn. Although we are lowering our 2012 estimates, we are raising 2013E revenue to $912.7mn from $901.0mn."

TripAdvisor has an estimated price-to-earnings ratio for next year of 17.50; the average for travel and tourism stocks is 24.09. For comparison, Priceline.com's (PCLN) forward P/E is 17.76 and Hertz (HTZ) has a forward P/E of 11.72.

Of the 15 analysts who cover TripAdvisor, 11 rated it a hold. Three analysts gave the stock a buy rating and one considered it a sell. The stock has risen 13.09% year to date.

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