NEW YORK (TheStreet) -- Shares of TripAdvisor (TRIP) are soaring 11.79% to $85.53 on Wednesday after the company said that it's teaming up with Marriott International (MAR) to let users of its travel-guide website book rooms at their hotels.
"We welcome Marriott to the Instant Booking platform, which provides travelers with a new, simplified booking functionality and an opportunity for Marriott to expand its relationship with guests before, during and after the trip," TripAdvisor's CEO Stephen Kaufer said.
Starting later this summer, travelers will be able to browse through TripAdvisor's website and book their stay at any of Marriott's more than 4,200 hotels.
This agreement will benefit Marriott by bringing new customers to the hospitality company's broad portfolio, according to both companies.
"TripAdvisor is a perfect partner for Marriott, both strategically and culturally," Marriott's CEO Arne Sorenson said. "Our new agreement demonstrates how the growth strategies for our two companies are aligned in the travel space."
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 multiple strengths, 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 and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 18.9%. Since the same quarter one year prior, revenues rose by 29.2%. 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 0.28 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 1.89, 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 96.42%. 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 17.35% significantly outperformed against the industry.
- TRIPADVISOR INC's earnings per share declined by 8.5% 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 ($2.23 versus $1.56).
- The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Internet & Catalog Retail industry average. The net income has decreased by 7.3% when compared to the same quarter one year ago, dropping from $68.00 million to $63.00 million.
- You can view the full analysis from the report here: TRIP Ratings Report