TripAdvisor (TRIP) Stock Gains Ahead of Today's Earnings Release
NEW YORK (TheStreet) -- TripAdvisor (TRIP) - Get Report stock is up by 1.12% to $83.55 in late morning trading on Thursday, ahead of the release of the company's third quarter 2015 earnings results after the market close today.
Analysts expect the travel website to report a year over year rise in both earnings per share and revenue for the most recent quarter.
TripAdvisor has been forecast to report earnings of 55 cents per share on revenue of $430.22 million by analysts surveyed by Thomson Reuters.
Last year, the company posted earnings of 48 cents per share on revenue of $354 million for the 2014 third quarter.
Separately, TheStreet Ratings team rates TRIPADVISOR INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate TRIPADVISOR INC (TRIP) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TRIP's revenue growth trails the industry average of 45.7%. Since the same quarter one year prior, revenues rose by 25.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- TRIP's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TRIP has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for TRIPADVISOR INC is currently very high, coming in at 96.05%. Regardless of TRIP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TRIP's net profit margin of 14.32% significantly outperformed against the industry.
- Net operating cash flow has increased to $200.00 million or 26.58% when compared to the same quarter last year. Despite an increase in cash flow, TRIPADVISOR INC's cash flow growth rate is still lower than the industry average growth rate of 53.39%.
- TRIPADVISOR INC's earnings per share declined by 14.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TRIPADVISOR INC increased its bottom line by earning $1.56 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $1.56).
- You can view the full analysis from the report here: TRIP
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.