Trip.com Earnings Miss Expectations, Shares Down 5.4% YTD

Trip.com (TCOM) reported earnings of $0.82 per share, below expectations. Revenue of $1.91 billion also missed consensus. The stock has declined 5.4% year to date, trailing the S&P 500's 1.3% gain. Investors await management commentary for future outlook.

Date: 20-05-2025

AI Rating: 5

Overview of Earnings Report: Trip.com (TCOM) recently released its quarterly earnings report indicating earnings per share (EPS) of $0.82. This figure was below the Zacks Consensus Estimate of $0.86 and represented a slight decrease from $0.83 EPS reported in the same period last year. The earnings surprise stands at -4.65%, which indicates a disappointing performance relative to expectations.

In terms of revenue, Trip.com generated $1.91 billion, which also fell short of the Zacks Consensus Estimate by 0.25%. However, compared to the same quarter last year where revenue was $1.65 billion, this represents growth, albeit not enough to inspire investor confidence. The company has managed to top revenue estimates two out of the last four quarters, but the recent shortfall may weigh on future sentiment.

Earnings Performance: The recent data shows that the company has exceeded consensus EPS estimates in three of the last four quarters. This indicates a capacity for operational success; however, the current quarter’s performance may spark concern regarding current management strategies and future growth potential.

Market Reaction: The stock has experienced a year-to-date decline of 5.4%, while the S&P 500 index has increased by 1.3%. This relative underperformance requires close monitoring as investors consider the implications of management’s commentary on upcoming earnings calls.

Future Earnings Outlook: The consensus EPS estimate for the coming quarter stands at $1.01 with projected revenues of $2.04 billion. As the market approaches that release date, revisions to these estimates will become paramount. A Zacks Rank of #3 (Hold) signals that the stock is expected to perform in line with the market in the near term. A mixed trend in earnings estimate revisions could affect stock movement significantly, making sentiment analysis critical.

Industry Context: The performance of Trip.com should also be viewed within the context of the Leisure and Recreation Services industry, which ranks in the top 36% of over 250 Zacks industries. Strong industry performance can enhance investor outlook and potentially mitigate some of the negatives arising from this quarter's miss.

Stocks: TCOM