TripAdvisor Falls After Revenue Misses Estimates: Boston Mover
TripAdvisor Inc. (TRIP), the online travel- recommendation service spun off from Expedia Inc. (EXPE) in December, plunged as much as 19 percent after second-quarter revenue missed analysts’ estimates.
TripAdvisor fell 18 percent to $35.82 at 10:17 a.m. in New York. The shares, up 72 percent this year, had tumbled as low as $35.01 earlier in the session, marking their biggest intraday decline since the stock began trading last year.
Revenue climbed 16 percent to $197.1 million, the Newton, Massachusetts-based company said yesterday in a statement. Analysts had estimated sales of $203.6 million on average, according to data compiled by Bloomberg. Excluding some items, earnings were 41 cents a share, matching analyst projections.
TripAdvisor and other travel companies are facing headwinds from the sputtering economy and the credit crisis in Europe, which has crimped consumer spending. The company’s website, a repository for user-generated reviews of hotels and other travel businesses, relies on advertising and subscriptions for revenue.
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