Global online travel firm TripAdvisor, Inc. (TRIP) has reported outstanding financial results for the second quarter of 2021. The Massachusetts-based company owns a portfolio of online travel brands to provide bookings for transportation, restaurants, travel experiences and lodging.
TripAdvisor reported an adjusted loss of $0.07 per share, narrower than the Street’s estimate of a loss of $0.11 per share and the year-ago loss of $0.76 per share. Total revenue soared 298% year-over-year to $235 million, exceeding analysts’ expectations of $188.57 million. The rise was driven by travel demand recovery in the U.S. and Europe.
Hotel revenue grew 323% year-over-year to $131 million; revenue from display and platform rose 257% to $25 million; experiences & dining revenue was up 386% to $68 million; and other revenues jumped 57% to $11 million.
The company said, “While we remain mindful of the ongoing risks posed by the virus and its variants, and near-term results will likely remain materially impacted by travel market conditions and government restrictions, we continue to expect that leisure travel, and our business, could experience a more robust second‐half rebound as vaccinations increase, countries reopen, and the leisure travel recovery broadens. This includes our expectation for Q3 revenue and adjusted EBITDA performance to meaningfully improve versus Q2, both in absolute dollar terms and as a percentage of 2019.”
TripAdvisor’s shares gained 5.3% to close at $37.95 on Thursday. (See TripAdvisor stock chart on TipRanks)
Two months ago, Ascendiant analyst Edward Woo maintained a Buy rating on the stock and raised the price target to $54 from $50 (42.3% upside potential). The analyst said, “The company’s 2021 outlook is much improved with vaccine rollouts and a travel industry rebound.”
Overall, the stock has a Strong Buy consensus based on 5 Buys and 7 Holds. The average TripAdvisor price target of $47.33 implies 24.7% upside potential. Shares of the company have gained nearly 76% over the past year.
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