Why Tripadvisor Stock Crashed 11% Today
Tripadvisor (NASDAQ: TRIP) stock beat on second-quarter earnings but missed on sales last night, triggering a series of analyst price target cuts on the travel advisory services stock Wednesday morning -- and sending Tripadvisor stock down 11% through 10 a.m. ET.
Heading into the quarter, analysts forecast Tripadvisor would earn $0.37 per share on sales of $504.8 million. Tripadvisor actually beat the earnings number, reporting profits of $0.39. But Tripadvisor missed badly on sales -- just $497 million -- and adding insult to injury, warned of further declines later in the year.
The news gets worse. Tripadvisor's earnings may have beaten expectations -- but they still weren't as good as initially appeared. Turns out, both Wall Street's forecast and Tripadvisor's $0.39 profit were non-GAAP (adjusted) numbers and, when calculated according to generally accepted accounting principles (GAAP), the company actually earned only $0.17 per share.
Source Fool.com
