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Oppenheimer Sees TripAdvisor's Lower Expectations Likely Already Baked In

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TripAdvisor, Inc. NASDAQ:TRIP - Oppenheimer Sees TripAdvisor's Lower Expectations Likely Already Baked In

Jed Kelly of Oppenheimer isn't particularly bullish on Tripadvisor Inc TRIP 0.46% heading into its first-quarter results, which are scheduled for May 4.

Kelly stated that while Tripadvisor "remains one of the most valuable and innovative assets in all of travel," there are "limited near-term catalysts" from Instant Booking's rollout. As such, investors should wait to become more constructive.

Kelly offered several key points investors should look out for in the company's quarterly print and subsequent conference call:

  • 1. Questions should focus on Instant Booking's monetization, especially around conversion improvement and repeat usage.
  • 2. As of last quarter, smartphones were monetizing at 30 percent of desktop but are driving a large portion of hotel shopper growth.
  • 3. Tripadvisor's management guided its hotel revenue to decelerate at a "meaningful" pace.
  • 4. Higher advertising spending could pressure industry advertising margins.
  • 5. Bottom line, the analyst's revenue estimates is 2 percent below the Street's, margins are 9 percent below the Street's estimates and EBITDA is 3 percent below the Street's estimates.

Shares of TripAdvisor were reiterated at a Perform rating with no assigned price target.

Apr 2016JP MorganMaintainsNeutral
Mar 2016MoffettNathansonInitiates Coverage onNeutral
Feb 2016Stifel NicolausDowngradesHoldSell

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