- Adjusted Earnings: Trip.com reported adjusted earnings per American depositary receipt (ADS) of 7.25 yuan, beating the estimated 5.22 yuan.
- Revenue: The company’s revenue reached 12.79 billion yuan, a 14% increase year-over-year, slightly above the estimated 12.75 billion yuan.
- Accommodation Revenue: Accommodation reservation revenue grew by 20% year-over-year to 5.14 billion yuan, higher than the estimated 4.95 billion yuan.
- Transportation Revenue: Transportation ticketing revenue saw a modest increase of 1.2% year-over-year to 4.87 billion yuan, slightly below the estimated 4.97 billion yuan.
- Packaged-Tour Revenue: Packaged-tour revenue surged by 42% year-over-year to 1.03 billion yuan, surpassing the estimated 1.02 billion yuan.
- Corporate Travel Revenue: Corporate travel revenue rose by 8.4% year-over-year to 633 million yuan, nearly meeting the estimate of 634.5 million yuan.
- Gross Profit: Trip.com reported a gross profit of 10.46 billion yuan, a 13% increase year-over-year, matching the estimated 10.46 billion yuan.
- Executive Commentary: Executive Chairman James Liang noted that the second quarter of 2024 saw continued growth driven by strong travel demand, particularly for cross-border travel.
- Analyst Ratings: Trip.com has received 35 buy ratings, one hold, and no sell ratings from analysts.
- Conference Call: The company will host a conference call at 8 a.m. Shanghai time.
Trip.com on Smartkarma
Analyst coverage on Trip.com by independent analysts on Smartkarma provides valuable insights for investors. Daniel Hellberg, in his report “Monthly Chinese Tourism Tracker | Outbound Recovery Sluggish, but Trip.com Too Cheap”, highlights Trip.com as a favorable investment opportunity despite sluggish outbound travel recovery. He emphasizes Trip.com‘s gaining market share and attractive valuation at 14x PER, recommending a BUY. In another report, “Trip.com Q124 Review: Solid Top-Line Growth | Progress on Margins | BUY Below US$50″, Hellberg praises Trip.com‘s strong Q124 earnings, solid top-line growth, and margin improvement. He sees Trip.com‘s ADSs as appealing below US$50, reinforcing a BUY rating.
On the contrary, Eric Wen adopts a bearish stance in the report “[Trip.com (TCOM US, SELL, TP US$45) TP Change]: Liquidity and Platform Positive Vs. Demand Negative”. Despite travel being a bright spot in consumption, Wen notes the challenges of overseas travel as a luxury item with tough competition, warranting a SELL rating with a raised price target of US$45/ADS. This divergence in sentiments from analysts like Hellberg and Wen underscores the varied perspectives in the investment community regarding Trip.com‘s outlook.
A look at Trip.com Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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
Looking at Trip.com‘s Smartkarma Smart Scores, the company seems to have a mixed outlook for the long term. While it scores well in Resilience and Momentum, with scores of 4 in both categories, indicating strong stability and positive market trends, respectively, its Dividend score of 1 suggests that it may not be a top choice for income-seeking investors. The Value and Growth scores, both at 3, indicate a moderate potential for value appreciation and expansion in the future, showing some promise but not exceptional prospects.
As a provider of online travel agency services, Trip.com Group Ltd. offers a range of travel-related solutions such as mobile applications, hotel reservations, flight ticketing, package tours, corporate travel management, and train ticketing services. With varying scores across different factors, Trip.com‘s overall outlook may warrant a cautious approach, balancing its strengths in resilience and momentum against its weaker dividend performance and moderate value and growth potential.
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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