Benzinga | Feb 17, 2021 10:25AM EST

Earnings Outlook For TripAdvisor

On Thursday, February 18, TripAdvisor (NASDAQ:TRIP) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on TripAdvisor management projections, analysts predict EPS of $0.25 on revenue of $107.59 million. In the same quarter last year, TripAdvisor reported EPS of $0.38 on revenue of $335.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 165.79% decrease in the company's earnings. Sales would be down 67.88% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.26 -0.66 0.21 0.33EPS Actual -0.17 -0.76 0.07 0.38Revenue Estimate 143.35 M 49.76 M 317.14 M 334.36 MRevenue Actual 151.00 M 59.00 M 278.00 M 335.00 M

Stock Performance

Shares of TripAdvisor were trading at $37.29 as of February 16. Over the last 52-week period, shares are up 27.79%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. TripAdvisor is scheduled to hold the call at 08:30:00 ET and can be accessed here.