NEW YORK (TheStreet) -- Shares of TripAdvisor Inc. (TRIP) are up 2.80% to $83.65 in pre-market trade after Liberty Interactive Corp. (LINTA) yesterday filed with regulators to spin off its stake in the travel website and ownership of online retailer BuySeasons into a separate company valued at nearly $3 billion.
Liberty TripAdvisor Holdings Inc, the new entity, will hold Liberty Interactive's 22% stake in TripAdvisor and 100% ownership of BuySeasons.
TripAdvisor announced financial results for the 2014 first quarter. Total revenue of $281 million was up 32%, quarter-over-quarter, and up 22% year-over-year.
Net income of $68 million, or 47 cents per diluted share, was up 240% quarter-over-quarter, and up 10% year-over-year.
Non-GAAP net income of $80 million, or 54 cents per diluted share, was up 167% quarter-over-quarter, and up 10% year-over-year.
Adjusted EBITDA of $122 million, or 43% of revenue, was up 135% quarter-over-quarter, and up 12% year-over-year.
TheStreet Ratings team rates TRIPADVISOR INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRIPADVISOR INC (TRIP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 25.5%. 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.
- Compared to its closing price of one year ago, TRIP's share price has jumped by 60.23%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- TRIPADVISOR INC's earnings per share declined by 39.1% 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 $1.41 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($2.13 versus $1.41).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet & Catalog Retail industry and the overall market, TRIPADVISOR INC's return on equity exceeds that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 39.6% when compared to the same quarter one year ago, falling from $33.58 million to $20.27 million.
- You can view the full analysis from the report here: TRIP Ratings Report