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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV