TripAdvisor Trips Up Again
TripAdvisor (NASDAQ: TRIP) has worked hard to transform itself into a full-blown online travel company. Going beyond its origins in solely offering reviews, TripAdvisor would ideally like to capture more of the business that it now refers out to its partners. Yet that's been a tough proposition for a while now, as competitive pressures throughout the online travel industry have made it harder for the company to gain traction and stand out from the crowd.
Coming into Wednesday's second-quarter financial report, investors had wanted to see solid earnings gains and some sales growth as well. Unfortunately, TripAdvisor once again saw its top line decline, and although the company wants to invest fully in its future, not everyone is happy about the sacrifices it's making to try to achieve its goals.
Second-quarter results didn't give the good news that people wanted to see. Revenue fell 3% to $422 million, well short of the 3% growth that most of those following the stock had expected. Adjusted net income fared a bit better, rising 10% to $64 million. But adjusted earnings of $0.45 per share couldn't match the consensus forecast among investors for $0.51 per share on the bottom line.
Quelle Fool.com
