Travel service provider Trip.com Group Ltd. (NASDAQ:TCOM) earnings exceeded third-quarter Fiscal 2023 expectations on the heels of solid sales growth. Total revenue surged 95% year-over-year to $1.89 billion, coming marginally in line with expectations. Remarkably, adjusted earnings per ADS (American Depositary Share) stood at $1.00, significantly better than the consensus of $0.67 per ADS. In Q3FY22, Trip.com reported adjusted earnings per ADS of $0.22 per share.
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The Shanghai-based travel company attributed the robust performance to a global rebound in both domestic and international travel demand as well as the momentum of summer travel. Trip.com’s domestic hotel bookings jumped 90% year-over-year and exceeded pre-COVID levels. The company expects the demand momentum to continue going forward and is fully committed to expanding its global footprint and “cultivating AI-related initiatives.”
Is Trip.com Stock a Buy?
With 11 unanimous Buys, Trip.com stock indeed commands a Strong Buy consensus rating. All of these ratings were given before the earnings were announced. On TipRanks, the average Trip.com price target of $50.82 implies 38.6% upside potential from current levels. Meanwhile, TCOM stock has gained 2.8% so far this year.
