Trip.com Group Ltd (NASDAQ: TCOM) has confirmed the release date for its Q4 2021 earnings report, which is scheduled on Wednesday, March 23, after market close.
What to look for
Earnings: Stockearning’s Estimated EPS for Q4 2021 is set to be $0.2 per share. The company reported earnings per share of $0.81 in the third quarter, topping consensus estimates of $0.1 per share by $0.8. a year ago, the company had EPS of $0.21 per share. For the current fiscal year, the company is expected to post EPS of $0. Historical EPS Performance shows that in the past 12 quarters, the company has topped estimates 32 times (91%), matched three times (8%), and never missed estimates.
Revenue: for the current quarter under review, the company anticipates posting revenue of $670.83 million. The company reported revenue of $761 million a year ago, which suggests a YoY decline in sales of 11.8%. In the third quarter, the company reported sales of $831 million, beating estimates of $808.93 million. The company is expecting revenue of $3.05 billion for the full year, with forecasts ranging between $3.02 billion and $3.10 billion. Trip.com anticipates revenue of $3.87 billion for fiscal 2022, with predictions ranging between $3.56 billion and $4.17 billion.
Stock movement: TCOM shares have lost 3.9% since the company released its last earnings release. Interestingly, following the earnings release, the company's shares have been DOWN 7 times in the past 12 quarters. So, the historical price reaction suggests a 58% probability of the share price going DOWN following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-5%, while the predicted volatility on the seventh day is +/-6%.
What analysts are saying: Macquarie analyst Ellie Jiang upgraded TCOM from Hold to Buy and set a price target of $23.5 on the shares. JPMorgan analyst Alex Yao downgraded the stock from Buy to Hold and slashed the price target from $30 to $20. Yao told investors in a research note that a sizable percentage of investors globally are attempting to lower exposure in China technology sectors owing to increase geopolitical tensions and macro risks, resulting in significant capital outflow from the industry, according to Yao in a research note. Trip.com, according to the analyst, will not be able to evade this "gravity," which could lead to a continued stock selloff. Essentially, the firm's financial picture is "primarily, if not entirely, connected" to China's COVID preventive approach and re-opening timeframe, according to Yao, and there's absolutely no visibility at this time.
Citi analyst Brian Gong raised his price target on the stock from $30 to $35 and kept a Buy rating on the shares. According to the analyst, the company's fourth-quarter revenue and profitability will generally be in line with expectations. In addition, Gong informs investors in a research note that travel levels were good during the Chinese New Year, especially for travel for family gatherings.
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