The Q1 2014 Tripadvisor Inc (NASDAQ: TRIP) earnings report is due after the market closes on Tuesday, May 6th, with investors and traders alike who follow either the stock or large cap Priceline Group Inc (NASDAQ: PCLN), mid cap Expedia Inc (NASDAQ: EXPE) and small caps Travelzoo Inc (NASDAQ: TZOO) and Orbitz Worldwide, Inc (NYSE: OWW) should be paying attention to it. Aside from the Tripadvisor Inc earnings report, it should be said that Travelzoo Inc released 1Q 2014 earnings on April 17th and Expedia Inc released earnings last Thursday while the Q1 2014 Orbitz Worldwide earnings report is due today before the market opens and the Priceline Group Inc earnings report is due out on Thursday, May 8, at 9:30AM EDT. However, Tripadvisor Inc is a little different from these other travel booking companies as its main focus is to provide travel advice or reviews written by real travelers (which obviously leads to travel bookings that they make money on).
What Should You Watch Out for With the Tripadvisor Inc Earnings Report?First, here is a quick recap of Tripadvisor Inc's recent earnings history:
| EPS Est | 0.46 | 0.49 | 0.45 | 0.21 |
| EPS Actual | 0.50 | 0.52 | 0.45 | 0.21 |
| Difference | 0.04 | 0.03 | 0.00 | 0.00 |
| Surprise % | 8.70% | 6.10% | 0.00% | 0.00% |
Last February, Tripadvisor Inc reported higher than expected revenue and in-line fourth quarter profits as a large amount of purchased TV ads weighed down profits, but website traffic also surged 50% from the third quarter. RBC Capital analyst Mark Mahaney then upgraded the stock to Outperform from Sector Perform, saying its 2014 outlook is "robust" and that the company can generate new revenue streams going forward as it has proven that it provides value for marketers.
This time around and according to Yahoo! Finance analyst estimates page, the consensus expects Tripadvisor Inc to report 1Q 2014 revenues of $282.94M and EPS of $0.55 with the EPS consensus being the same over the past 90 days ago.
As for recent news, Tripadvisor Inc just got into the Airbnb and vacation rental hype last Thursday by acquiring Vacation Home Rentals, a Massachusetts-based vacation rentals website that features more than 14,000 properties around the world, for an undisclosed sum. So investors should expect some questions about that during the earnings call along with plenty of questions regarding the strength of the travel market or the economy in general.
What do the Tripadvisor Inc Charts Say?The latest technical chart for Tripadvisor Inc shows the stock hit a 52 week high around the $110 level only to touch below the $80 level late last month:
However, Tripadvisor Inc has also outperformed other travel stocks since its IPO and as the economy has gotten stronger since the end of the financial crisis:
And for reference, here are the latest technical charts for Priceline Group Inc, Expedia Inc, Travelzoo Inc and Orbitz Worldwide, Inc:
I would not expect any big positive or negative surprises with the Q1 2014 Tripadvisor Inc earnings report. But if you are invested in any online travel stock like Expedia, Travelzoo, Priceline Group and Orbitz Worldwide, it might be a good idea to pay attention to what is reported and to listen in on the Tripadvisor Inc earnings call.
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