Shares of the online travel platform Tripadvisor (NASDAQ:TRIP) jumped about 14% in Monday’s after-hours trading. This spike in TRIP came after the company announced that it was exploring alternatives, including a potential sale of its business. It hired Centerview Partners as its financial advisor.
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According to Tripadvisor, a special committee comprising independent directors has been established to evaluate any possible sale bids. This action was taken in response to a recent SEC disclosure from Liberty TripAdvisor Holding, which owns approximately 21.1% of TRIP, expressing its interest in acquiring Tripadvisor.
Notably, Tripadvisor will report its fourth-quarter financial results on Thursday, February 15, 2024. Let’s delve into Q4 expectations.
Tripadvisor – Q4 Expectations
Wall Street expects Tripadvisor to report revenue of $375 million in Q4, reflecting a year-over-year growth of 5.9%. The company’s top line marked 16% year-over-year growth during the third quarter.
Analysts expect Tripadvisor to post earnings of $0.22 per share in Q4, up from $0.16 in the prior-year quarter.
Is Tripadvisor a Good Stock to Buy?
Tripadvisor stock is down about 8.4% in one year, underperforming the S&P 500’s (SPX) gain of 21.5%. Meanwhile, Wall Street remains sidelined on Tripadvisor stock ahead of Q4 earnings.
It has received three Buy, six Hold, and one Sell recommendations for a Hold consensus rating. Analysts’ average price target of $22.70 implies a limited 1.48% upside potential from current levels.
