TripAdvisor Inc. (TRIP) saw its shares jump nearly 18% on Thursday, Nov. 8, after releasing a strong third-quarter earnings report.
The Massachusetts-based online travel site said its adjusted earnings per share doubled to 72 cents, well above Zacks estimate of 47 cents. TripAdvisor's revenue also rose to $458 million, a 4% increase from the same quarter last year. Net income jumped to $69 million, coming close to tripling last year's third-quarter profit of $25 million.
But there were some struggles. Hotel-related revenue fell 2% to $305 million. TripAdvisor took the biggest hit in revenue from non-company-branded websites ads. This segment of ad revenue fell by 27% to $30 million.
Chief Financial Officer Ernst Teunissen played up some bright spots in TripAdvisor's hotel business, however, saying the quarter had "a number of very positive developments." Revenue per hotel shopper increased by 5%, said Teunissen in the earnings report, touting revenue growth non-hotel offerings.
What truly lifted up earnings results, however, was a 20% jump in non-hotel related revenue to $153 million.
Dubbing itself as the world's largest travel site, TripAdvisor has posted more than 702 million reviews on 8 million accommodations, airlines, destinations and restaurants and boasts 490 million average monthly unique visitors to its sites.
"We are on track to deliver strong profit growth in 2018," said Teunissen, "and we are well-positioned heading into 2019."