Tuesday, 02 January 2024 12:17 GMT

Trip Retail Investors Bullish Ahead Of Q3 Reports Despite Profit Decline Prediction


(MENAFN- AsiaNet News)
  • Stocktwits sentiment for Trip climbs higher in the 'bullish' zone ahead of the company's third-quarter report after the markets close.
  • Analysts expect a nearly 15% growth in revenue, but a 9% decline in adjusted EPS.
  • Twenty-eight of the 30 brokerages covering the stock recommend 'Buy' or higher.

Bullish sentiment around Trip Group Ltd. (TCOM) gained ground early Monday, even as the stock slipped from recent highs ahead of its earnings report. 

Stocktwits sentiment for the stock rose about 20 points deeper in the 'bullish' zone as of early Monday, up from the previous day. The Chinese travel company is scheduled to report its quarterly results after the markets close.

Analysts expect Trip, which operates its namesake site and other services such as Ctrip, Qunar, and Skyscanner, to report a 14.7% rise in third-quarter revenue to $2.57 billion, according to Koyfin. That would be the slowest pace since the second quarter of last year.

Adjusted EPS is expected to decline 9% to $1.12, dropping for the third straight quarter.

TCOM sentiment and message volume as of November 17 | Source: Stocktwits

Although the TCOM stock trades near an all-time high achieved in mid-September, it has declined in the last two sessions. Shares are down 3.5% since last Wednesday, but remain up 5% since the start of the year.

Shares listed in Hong Kong declined 3.6% on Monday.

In the recent past, the company has introduced several new products and features, including Trip, an AI-powered one-stop itinerary tool, and FlightAI, a data-visualization platform to help airlines and airports monitor trends and optimize operations. The company has also expanded its corporate and events-driven packages business.

Currently, an overwhelming 28 of the 30 analysts covering TCOM have a 'Buy' or higher rating, and only two rate it 'Hold,' according to Koyfin. Their average price target of $84.01 implies a 16.6% upside to the stock's last close. 

In its last quarter's results, released in August, the company reported a sharp 70% growth in international business and authorized a $5 billion share buyback, including the company's American depositary receipts (ADRs).

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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