Chinese travel solutions provider Trip.com (NASDAQ:TCOM) (HK:9961) clocked robust top-line growth for the first quarter on the back of buoyant travel trends. As a result, shares of the company are ticking higher in the early trading session today.
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TCOM’s Strong Q1 Performance
TCOM’s revenue jumped by 29% year-over-year to $1.6 billion. Importantly, its Earnings per American Depository Share (EPADS) nearly doubled over the prior-year period to $0.83.
The quarter was marked by positive momentum across TCOM’s domestic and international businesses. The company’s domestic hotel and air bookings improved by 20% each in Q1. Moreover, its outbound hotel and air bookings jumped by over 100%. Notably, total revenue from TCOM’s global OTA platform rose by 80% over the prior-year period.
Furthermore, TCOM experienced improved performance across packaged tours and corporate travel (its packaged-tour revenue expanded by nearly 129% year-over-year). This growth points to possibly improving business as well as consumer sentiment in China, as the country undertakes measures to support its economy and financial markets.
What Is the Stock Price Forecast for TCOM?
For Trip.com, today’s price gains come on top of a nearly 74% rise in its share price over the past six months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average TCOM price target of $55.57. However, analysts’ views on the stock could see a revision following today’s earnings report.
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