Shares of TripAdvisor Inc. (TRIP) - Get TripAdvisor, Inc. Report were falling 6.9% in trading Wednesday after the vacation booking company reported fourth-quarter results that were below analysts' expectations as its hotel booking segment struggled.
The company reported adjusted earnings of 27 cents per share, 3 cents short of the 30 cents per share analysts were expecting, on revenue of $346 million, which topped Wall Street's $344.3 million guidance.
Fourth-quarter hotel revenue of $240 million was a 2% decrease year over year. Even though hotel revenue was down, the company was able to increase hotel segment profitability. TripAdvisor, however, also said that it expects weakness in the segment to continue into 2019.
"Our solid Q4 capped a very strong 2018," said Chief Executive Officer Steve Kaufer. "We reinvigorated Hotel segment profitability, reinforced our leading positions in Experiences and Restaurants and laid important groundwork for future growth. We are pleased with our progress and will continue to balance growth and margin to deliver maximum shareholder value."
Year to date, TripAdvisor shares have risen nearly 14% and the stock has gained about 60% over the past 12 months.