Trip.com reported fourth-quarter results late Monday that soundly beat estimates on the top and bottom lines, fueled by the easing of Covid restrictions. TCOM stock climbed on the news.
The company reported adjusted earnings of 11 cents a share on revenue of $729 million. Analysts expected Trip to report an adjusted loss of 3 cents a share on revenue of $704 million.
TCOM stock moved up 1.7% to 39.28 in after-hours trading on the stock market today.
Trip.com is an online travel operation based in Shanghai. Services include accommodation reservation, transportation ticketing, packaged tours and corporate travel management. It operates under a portfolio of brands, including Ctrip, Qunar, Trip.com and Skyscanner.
TCOM Stock Ranks Fourth In Industry Group
Outbound air-ticket bookings and hotel bookings jumped more than 200% and 140%, respectively, from the year-ago period.
"The year of 2022 marks a turning point for the global travel industry, with most of the travel restrictions and quarantine requirements in China being lifted in December and the global travel industry maintaining its robust recovery," James Liang, executive chairman, said in a statement with the earnings report.
"We have seen rapid growth for China's outbound travel since the beginning of 2023, showing a strong pent-up demand for outbound travel."
For the year, revenue totaled $2.9 billion, which remained flat from the prior year.
TCOM stock ranks fourth out of 19 stocks in IBD's Leisure-Travel Booking industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 89 out of 99.
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