Trip.com (TCOM) Fourth-quarter earnings and revenue beat estimates

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Jrip.com (TCOM) exited with quarterly earnings of $0.08 per share, beating Zacks consensus estimate of a loss of $0.09 per share. That compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 188.89%. A quarter ago, this travel services company was expected to post a profit of $0.01 per share when it actually produced a profit of $0.13, offering a surprise of 1,200 %.

In the past four quarters, the company has exceeded consensus EPS estimates four times.

Trip.com, which is part of Zacks’ recreation and leisure services industry, posted revenue of $735 million for the quarter ended December 2021, beating Zacks’ consensus estimate of 8.19%. That compares to revenues of $761 million a year ago. The company has exceeded consensus revenue estimates four times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Shares of Trip.com have lost about 1.8% year-to-date compared to a -5.3% decline for the S&P 500.

What’s next for Trip.com?

With Trip.com outperforming the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this earnings release, the trend of estimate revisions for Trip.com is mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.11 on $640.48 million in revenue for the upcoming quarter and $0.57 on $3.9 billion in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, recreation and recreation services currently make up 45% of Zacks more than 250 industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in Zacks’ broader consumer discretionary sector, Las Vegas Sands (LVS), has yet to report results for the quarter ending March 2022.

This casino operator is expected to post a quarterly loss of $0.21 per share in its next report, representing a year-over-year change of +16%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

Las Vegas Sands revenue is expected to be $1.16 billion, down 2.9% from the year-ago quarter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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