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Can Travel Sites Beat Market Expectations?

Published 08/07/2017, 01:45 PM
Updated 07/09/2023, 06:31 AM
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Walt Disney Company (NYSE:DIS) Releasing: 8/8/17

The Estimize consensus calls for EPS of $1.57, two cents higher than the Wall Street’s consensus of $1.55. Currently, the Estimize community is looking for revenues of $14,557M, slightly higher than the Street’s expectation for $14,442M.

Despite Disney’s popularity among adults and children alike, its stock has been trading at the same price since early 2015, a concerning statistic for investors. However, Disney’s bottom line is projected to grow from $5.72 per share to $8 per share. Unlike most stock’s where looking at the stats could tell us all we need to know, Disney’s intangible factors could play a huge role in its futures stock growth. For example, Disney’s CEO, Bob Iger is set to leave Disney in July 2019; who will take over could for sure impact the stock. Likewise, Disney’s recent movies have not been raking in the revenue that its predecessors have. To top things off, Disney’s ESPN franchise has been going through some major changes lately, including firing 100+ employees to accommodate the changing media market. Regardless, Disney may still be a long-term investment. Disney will always be a hotspot for families, meaning it will continue to innovate and surprise followers with new attractions, movies, franchises, etc.

Priceline.com Incorporated (NASDAQ:PCLN) Releasing: 8/8/17

The Estimize consensus calls for EPS of $14.47, a bit higher than the Wall Street’s consensus of $14.27. Currently, the Estimize community is looking for revenues of $3,004M, slightly higher than the Street’s expectation for $2,996M.

The U.S. and European economies are strengthening, a fact that bodes well for travel companies such as Priceline. Investors are loving Priceline right now due to its nearly 40% stock growth in just a year, a sales growth forecast of 15.5% over the next two years and a 13% earnings growth in 2017. Likewise, PCLN recently acquired Kayak for just $1.8 billion, as well as Open Table and Momondo for $550 million. However, some analysts are warning us to be wary of so much growth in so little time. Some things they are saying to look at is the fact that its P/E ratio has rarely topped 45 and when it does, it is rarely able to sustain those levels. The Estimize community is also looking at some KPIs, including Total Bookings and Room Nights growth, with estimates coming in at $21,273M and 26.29% respectively. Total Bookings is projected to grow 14% YoY and Room Nights is projected to grow 8% YoY.

TripAdvisor Inc. (NASDAQ:TRIP) Releasing: 8/8/17

The Estimize consensus calls for EPS of $0.30, equal to the Wall Street consensus. Currently, the Estimize community is looking for revenues of $418.91M, slightly lower than the Street’s expectation for $423.62M.

Despite some disappointment in the market for TripAdvisor, the company has been showing a positive balance sheet, as well as some strategic management changes that provide a positive outlook for investors. Likewise, some analysts are saying that the stock price of $39.62 provides a nice margin of error for any fluctuations in the market. TripAdvisor’s two operating segments are both providing revenue; its hotel segment provides roughly 84% and its non-hotel segment including attractions and dining, is contributing roughly 15%. Some revenue increases last quarter were driven by an increase in revenue per hotel shopper, as well as an increase in percentage of traffic from paid marketing channels. The Estimize community is predicting a YoY revenue growth of roughly 8%, a positive statistic for some long term investors.

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