Priceline Q2 View Yanks Partner TripAdvisor Ahead Of Q1 Earnings
Priceline ‘s ( PCLN ) Q2 guidance miss following its CEO’s unexpected resignation weighed on travel stocks Wednesday, tugging shares of partner TripAdvisor ( TRIP ) ahead of the smaller agency’s Q1 earnings report, slated for late Thursday. In afternoon trading on the stock market today , IBD’s 11-company Leisure-Travel Booking industry group was down 8.5% and hit a two-month low, led by a 9% dip in Priceline stock . Shares of TripAdvisor and Expedia ( EXPE ) were down nearly 4% and 2%, respectively. TripAdvisor is the third in the trio to report Q1 earnings. Expedia’s blow-out Q1 report drove the group up 1.6% last Friday. For Q1, the consensus of 26 analysts polled by Thomson Reuters expects TripAdvisor to report $370.5 million in sales and 46 cents earnings per share minus items, up 2% and down 15%, respectively, vs. the year-earlier quarter. On a year-over-year basis, it would be the second time in four quarters Tripadvisor’s EPS has fallen and the biggest EPS decline since December 2013. Sales would decelerate for the sixth consecutive quarter. The consensus models $110.16 million earnings before interest, taxes, depreciation and amortization (EBITDA), down 13% vs. $127 million in the year-earlier period. TripAdvisor didn’t provide guidance during its February Q4 earnings report, noting it would no longer offer an annual sales and EBITDA outlook. Though, CFO Ernst Teunissen cautioned that instant booking would likely continue to dilute near-term results. TripAdvisor and Priceline last year inked a partnership where some of Priceline’s online travel brands participate in TripAdvisor’s instant booking platform.