Key points:
- Tripadvisor stock dips on Q4 earnings, reported a loss of $0.01 on consensus of $0.09
- Revenue jumped 108% year-on-year, but still missed analyst expectations
- Travel stocks are worth keeping a keen eye on; pre-emptive of the travel bounce
Following a promising earnings report from Airbnb earlier in the week, Tripadvisor (NASDAQ: TRIP) is the latest travel company to update eager investors on the current health of the travel industry, after the extended aura of panic gives way to growing anticipation as a travel resurgence draws closer. TRIP stocked initially dropped around 8% premarket before regaining most of the loss with the opening the market, with the stock now sitting on a daily loss of just 2%.
The company reported an adjusted Q4 loss of $0.01 versus the consensus estimate of $0.09 per share and compared to $0.16 in the previous quarter. Revenue soared to $241M, illustrating a 108% growth year-over-year, but still missed analyst expectations of $247.9M.
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The majority of Tripadvisor’s Q4 users were driven by the progress in global vaccination effort, relaxing government travel restrictions, and a swelling demand in consumer travel. Tripadvisor Plus showed strength over the quarter as the subscription-based service continues to grow. Still, travel disruptions acted as a clear hurdle, with Omicron fears weighing on the later months of 2021.
In the early months of 2022, the haze over the travel industry is slowly starting to clear and optimism is returning to consumers. Travel stocks that have taken a beating over the last two years are starting to look more appealing than ever as they gear up for a sharp bounceback in travel.