uploads///ANR

What Do Analysts Estimate for TripAdvisor in 2016 and Beyond?

By

Dec. 28 2016, Updated 9:06 a.m. ET

Analyst estimates

TripAdvisor’s (TRIP) sales are expected to grow 10% to $340 million in 4Q16. For fiscal 2016, analysts expect TRIP’s sales to grow 2% to ~$1.5 billion. Its EBITDA[1. earnings before interest, tax, depreciation, and amortization] is expected to remain flat at 0.03% to $87 million in 4Q16. For fiscal 2016, its EBITDA is expected to fall 17% to ~$388 million.

TRIP’s earnings per share are also expected to fall 26% in 4Q16 to $0.33. For fiscal 2016, its earnings per share are expected to fall 24% to $1.6.

The company’s sales are expected to rise 15% in 2017 and in 2018, achieving sales of $1.7 billion and $2 billion, respectively. Its EBITDA growth is expected to accelerate to 26% in both 2017 and 2018 to ~$488 million and $621 million, respectively.

Article continues below advertisement

Analyst recommendations

Of the 27 analysts rating TripAdvisor (TRIP) stock after the company’s 3Q16 earnings report, 14.8% (four analysts) issued a “buy” rating, 74.1% (20 analysts) issued a “hold” rating, and 11.1% (three analysts) issued a “sell” rating.

Target price

The consensus 12-month target for TRIP’s stock price is $63.86, which indicates a 1.2% return potential. Consensus target prices for other online travel players are:

  • Priceline (PCLN) has a 12-month target price of $1,732.00 with a return potential of 9.8%.
  • Expedia (EXPE) has a 12-month target price of $141.50 with a return potential of 11.4%.
  • Ctrip.com (CTRP) has a 12-month target price of $52.70 with a return potential of 20.9%.

TRIP makes up ~1.8% of the NASDAQ-100 Ex-Technology Sector Index ETF (QQXT).

Advertisement

More From Market Realist