- Trip.com reported adjusted earnings per American Depositary Share (ADS) of 8.75 yuan, surpassing the estimate of 7.00 yuan.
- Revenue for the third quarter was 15.90 billion yuan, marking a 16% increase compared to the previous year, beating the estimate of 15.65 billion yuan.
- Accommodation reservation revenue grew by 22% year-over-year, totaling 6.80 billion yuan and meeting the expected estimate of 6.8 billion yuan.
- Transportation ticketing revenue rose by 5.3% year-over-year to 5.65 billion yuan, slightly above the estimate of 5.53 billion yuan.
- Packaged-tour revenue reached 1.56 billion yuan, reflecting a 17% year-over-year increase, but fell short of the estimated 1.61 billion yuan.
- Corporate travel revenue increased by 11% year-over-year to 656 million yuan, exceeding the estimate of 648.7 million yuan.
- Revenue from other sources surged by 41% year-over-year to 1.23 billion yuan, beating the estimate of 1.03 billion yuan.
- The company’s gross profit was reported at 13.07 billion yuan, a 16% increase year-over-year, slightly above the estimated 12.93 billion yuan.
- Analyst recommendations include 34 “buys,” 2 “holds,” and 1 “sell” rating for Trip.com.
Trip.com on Smartkarma
Analyst coverage of Trip.com on Smartkarma reveals positive sentiments towards the company’s performance. Daniel Hellberg‘s report highlighted the slower revenue growth in Q2 for Trip.com; however, the company showed improved margins due to effective management of operating expenses. Despite the slower growth, Trip.com‘s competitive position has strengthened post-Covid, leading to a “BUY” rating with a target price of US$58. Similarly, Eric Wen‘s analysis indicated that Trip.com exceeded revenue and net income expectations in Q2, driven by international growth and rising equity income, prompting analysts to recommend buying with a target price of US$50.
In another report by Daniel Hellberg, Chinese outbound travel activity showed signs of improvement, with July data approaching pre-Covid levels. Trip.com continues to garner favor, maintaining a “BUY” rating and a US$55 price target. Despite sluggish outbound travel recovery in June, Trip.com is viewed as undervalued and gaining market share, trading at a low PER of 14x. Overall, analysts on Smartkarma remain bullish on Trip.com‘s prospects, noting its resilience and growth potential in the evolving tourism sector.
A look at Trip.com Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Trip.com Group Ltd.’s long-term outlook using their Smart Scores. With a strong rating of 5 for Momentum and 4 for Resilience, Trip.com seems well-positioned to maintain its growth trajectory and weather market uncertainties effectively. Additionally, the company scores moderately high in terms of Value and Growth at 3 each, indicating a solid foundation and potential for expansion.
However, Trip.com‘s Smart Scores reveal some areas for improvement, notably in the Dividend category where it scores a 1. This suggests that the company may not be prioritizing dividend payouts to investors. Despite this, Trip.com‘s overall outlook appears promising, benefiting from its diverse offerings including mobile applications, hotel reservations, flight ticketing, and more.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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