• Trip.com‘s adjusted earnings per American depositary receipts were 6.00 yuan, beating the estimated 4.08 yuan.
• Their revenue was 11.92 billion yuan, a 29% increase year on year, surpassing the predicted 11.62 billion yuan.
• Accommodation reservation income reached 4.50 billion yuan, up 29% from the previous year, topping the estimate of 4.4 billion yuan.
• Transportation ticketing brought in 5.00 billion yuan, a 20% growth year on year, slightly above the estimated 4.99 billion yuan.
• Packaged-tour revenue stood at 883 million yuan, a significant increase from 386 million yuan the previous year, and higher than the predicted 848 million yuan.
• Corporate travel revenue was 511 million yuan, an increase of 15% year on year, and higher than the projected 501.5 million yuan.
• Gross profit reached 9.67 billion yuan, 28% more than the previous year, surpassing the estimated 9.28 billion yuan.
• James Liang, Executive Chairman, commented on the significant increase in travel demand in China, both domestically and outbound, facilitated by a more stabilized supply and relaxation of visa requirements.
• Trip.com‘s global business also experienced growth, driven by enhanced product offerings.
• The company’s shares rose 2.5% in post-market trading to $58.48.
Trip.com on Smartkarma
Analyst coverage on Smartkarma provides valuable insights on Trip.com. Daniel Hellberg‘s report on the Monthly Chinese Tourism Tracker indicates a positive outlook, with a focus on Chinese outbound tourism demand recovery. The report highlights Trip.com as the best YTD performer in the space, raising the question of whether airlines can catch up. Ming Lu‘s report on China Consumption Weekly emphasizes encouraging trends in the car and travel markets, reflecting positively on potential opportunities for companies like Trip.com.
Furthermore, Daniel Hellberg‘s analysis on Trip.com‘s performance in Q4 showcases strong top-line growth and effective expense control. The report suggests buying Trip.com below US$43/ADS, positioning the company as an attractive investment option. Overall, the analyst coverage underscores Trip.com‘s resilience and growth potential in the evolving tourism and consumer markets, making it a noteworthy player to watch in the investment landscape.
A look at Trip.com Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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 using the Smartkarma Smart Scores have painted a positive long-term outlook for Trip.com Group Ltd. The company has received high scores in growth and momentum, indicating strong potential for future expansion and market performance. With above-average marks in resilience and a moderate score in value, Trip.com is poised for continued success in the online travel agency sector.
As Trip.com continues to focus on growth opportunities and capitalizing on momentum in the market, investors may find the company a promising choice for long-term investment. While the lower dividend score may not attract income-seeking investors, the overall outlook suggests that Trip.com‘s strategic position in the travel industry could lead to substantial returns over time.
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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