Core Insights - Trip.com Group Limited reported strong financial results for Q3 2024, with net revenue increasing by 16% year-over-year to RMB15.9 billion (US$2.3 billion) [2][3] - The company experienced robust growth in international businesses, with outbound hotel and air reservations reaching approximately 120% of pre-COVID levels from 2019 [2][3] - The travel industry is expected to continue its growth trajectory, driven by increasing consumer confidence and advancements in AI technology [2] Financial Performance - Net income for Q3 2024 was RMB6.8 billion (US$970 million), up from RMB4.6 billion in Q3 2023 [3] - Adjusted EBITDA for the quarter was RMB5.7 billion (US$808 million), an increase from RMB4.6 billion in the same period last year [3] - Accommodation reservation revenue rose by 22% year-over-year to RMB6.8 billion (US$969 million), while transportation ticketing revenue increased by 5% to RMB5.7 billion (US$805 million) [3] Revenue Breakdown - Packaged-tour revenue grew by 17% year-over-year to RMB1.6 billion (US$222 million) [3] - Corporate travel revenue increased by 11% to RMB656 million (US$93 million) [3] - The cost of revenue for Q3 2024 was RMB2.8 billion (US$399 million), reflecting a 13% increase from the previous year [3] Operational Highlights - The company noted a significant increase in accommodation reservations, with a 32% rise from the previous quarter [3] - Sales and marketing expenses rose by 23% year-over-year to RMB3.4 billion (US$482 million), driven by promotional activities [3] - As of September 30, 2024, the company had cash and cash equivalents totaling RMB86.9 billion (US$12.4 billion) [3]

International Travel Recovery - International outbound hotel and air reservations rebounded to approximately 120% of the pre-COVID level for the same period in 2019[1] - Air ticket and hotel reservations on the Company's international OTA brand increased by over 60% year-over-year[1] Financial Performance - Net revenue for the third quarter of 2024 grew by 16% year-over-year to RMB15.9 billion (US$2.3 billion)[2] - Net income for the third quarter of 2024 was RMB6.8 billion (US$970 million), a 48% increase from the same period in 2023[1] - Adjusted EBITDA for the third quarter of 2024 was RMB5.7 billion (US$808 million), a 24% increase from the same period in 2023[1] - Total revenue for Q3 2024 reached RMB 15,900 million (USD 2,265 million), a 24.3% increase compared to Q3 2023[10] - Net income attributable to Trip.com Group Limited for Q3 2024 was RMB 6,765 million (USD 962 million), a 46.6% increase year-over-year[11] - Adjusted EBITDA for Q3 2024 was RMB 5,680 million (USD 808 million), with an Adjusted EBITDA margin of 36%[12] - Non-GAAP net income attributable to Trip.com Group Limited for Q3 2024 was RMB 5,963 million (USD 847 million)[13] - Non-GAAP diluted income per ADS for Q3 2024 was RMB 8.75 (USD 1.25), a 49.8% increase year-over-year[13] Revenue Breakdown - Accommodation reservation revenue for the third quarter of 2024 increased by 22% year-over-year to RMB6.8 billion (US$969 million)[2] - Transportation ticketing revenue for the third quarter of 2024 increased by 5% year-over-year to RMB5.7 billion (US$805 million)[2] - Packaged-tour revenue for the third quarter of 2024 increased by 17% year-over-year to RMB1.6 billion (US$222 million)[2] - Corporate travel revenue for the third quarter of 2024 increased by 11% year-over-year to RMB656 million (US$93 million)[2] - Accommodation reservation revenue grew 21.7% year-over-year to RMB 6,802 million (USD 969 million) in Q3 2024[10] - Transportation ticketing revenue increased 5.3% year-over-year to RMB 5,650 million (USD 805 million) in Q3 2024[10] - Packaged-tour revenue surged 17.3% year-over-year to RMB 1,558 million (USD 222 million) in Q3 2024[10] Cash and Investments - As of September 30, 2024, the balance of cash and cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products was RMB86.9 billion (US$12.4 billion)[3] Operating Expenses - Operating expenses for Q3 2024 totaled RMB 8,067 million (USD 1,150 million), a 9.5% increase compared to Q3 2023[11] - Share-based compensation for Q3 2024 was RMB 459 million (USD 65 million), a 31.9% decrease compared to Q2 2024[13]

Company Performance - Trip.com shares closed at $66.68, reflecting a +1.83% change from the previous trading day's closing, outperforming the S&P 500's daily gain of 0.1% [1] - Over the past month, Trip.com shares gained 0.69%, lagging behind the Consumer Discretionary sector's gain of 5.33% and the S&P 500's gain of 4.37% [1] Upcoming Earnings - Trip.com is set to announce its earnings on November 18, 2024, with an expected EPS of $0.91, down 9% from the prior-year quarter [2] - The consensus estimate predicts revenue of $2.2 billion, indicating a 16.65% increase compared to the same quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at $3.36 per share and revenue at $7.35 billion, reflecting changes of +22.63% and +18.09% respectively from the preceding year [3] - Recent changes to analyst estimates for Trip.com may indicate a changing business landscape, with positive revisions suggesting optimism about the company's outlook [3] Valuation Metrics - Trip.com is currently trading with a Forward P/E ratio of 19.49, which is a discount compared to the industry average Forward P/E of 21.72 [6] - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 ranked stocks yield an average annual return of +25% since 1988 [5] - Trip.com currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5]

Group 1 - Trip.com (TCOM) closed at $68.42, reflecting a +1.75% change from the previous trading day's closing, outperforming the S&P 500's gain of 1.23% [1] - Over the past month, Trip.com shares have decreased by 1.62%, while the Consumer Discretionary sector gained 1.35% and the S&P 500 lost 0.54% [1] Group 2 - The upcoming earnings report for Trip.com is expected to show an EPS of $0.91, indicating a 9% decline compared to the same quarter last year, with projected revenue of $2.2 billion, reflecting a 16.65% increase [2] - For the full year, earnings are projected at $3.36 per share and revenue at $7.35 billion, representing increases of +22.63% and +18.09% respectively from the previous year [3] Group 3 - Recent changes to analyst estimates for Trip.com are being monitored, as upward revisions indicate analysts' positive outlook on the company's operations and profit generation [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Trip.com at 3 (Hold), with the consensus EPS projection remaining unchanged over the past 30 days [6] Group 4 - Trip.com is currently trading at a Forward P/E ratio of 20.01, which is in line with the industry average [7] - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 61, placing it in the top 25% of over 250 industries [7] Group 5 - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - Trip.com Group Limited will announce its financial results for the three months ended September 30, 2024, on November 18, 2024, U.S. Time [1] - A conference call will be hosted by the management team at 7:00 PM U.S. Eastern Time on the same day, with a live webcast available [2] - The company operates a comprehensive travel platform and is recognized as a leading provider of travel services globally [4] Company Overview - Trip.com Group Limited is a leading global one-stop travel platform, offering a wide range of travel products and services [4] - The company was founded in 1999 and is listed on Nasdaq since 2003 and HKEX since 2021 [4] - It operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, with a mission to pursue the perfect trip for a better world [4]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

Core Viewpoint - Trip.com is experiencing a mixed performance in the market, with a recent share price of $64.89 and a notable increase of 9.49% over the last month, outperforming both the Consumer Discretionary sector and the S&P 500 [1][2]. Financial Performance - The upcoming earnings release is anticipated to show an EPS of $0.91, reflecting a 9% decline year-over-year, while revenue is projected at $2.2 billion, indicating a 16.65% increase from the same quarter last year [2]. - Full-year estimates predict earnings of $3.36 per share and revenue of $7.35 billion, representing year-over-year growth of +22.63% and +18.09% respectively [3]. Analyst Sentiment - Recent changes in analyst estimates for Trip.com are crucial, as positive revisions indicate optimism regarding the company's business and profitability [3][4]. - The Zacks Rank system currently rates Trip.com as 3 (Hold), with the consensus EPS estimate remaining unchanged over the past month [5]. Valuation Metrics - Trip.com is trading at a Forward P/E ratio of 19.37, which is slightly lower than the industry average of 19.61, suggesting a relative discount [6]. - The Leisure and Recreation Services industry, which includes Trip.com, holds a Zacks Industry Rank of 102, placing it in the top 41% of over 250 industries [6][7].

Core Viewpoint - Trip.com (TCOM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings potential, which is expected to drive buying pressure and increase its stock price [1][2]. Earnings Outlook - For the fiscal year ending December 2024, Trip.com is projected to earn $3.36 per share, reflecting a 22.6% increase from the previous year's reported figure [5]. - Over the past three months, the Zacks Consensus Estimate for Trip.com has risen by 5.6%, indicating a trend of increasing earnings estimates [5]. Impact of Earnings Estimates - The correlation between changes in earnings estimates and stock price movements is strong, with institutional investors using these estimates to assess fair value, leading to significant buying or selling actions that affect stock prices [3]. - The Zacks rating system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Zacks Rating System - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating, indicating superior earnings estimate revisions [6]. - The upgrade of Trip.com to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for near-term price appreciation [6].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility. Trip.com (TCOM) is highlighted as a strong growth stock based on its favorable Growth Score and Zacks Rank [1]. Earnings Growth - Trip.com has a historical EPS growth rate of 37.2%, with projected EPS growth of 22.6% for the current year, significantly outperforming the industry average of 13.8% [3]. Cash Flow Growth - The company exhibits a remarkable year-over-year cash flow growth of 374.8%, compared to the industry average of -21.4%. Over the past 3-5 years, Trip.com has maintained an annualized cash flow growth rate of 20.9%, while the industry average stands at -1.3% [4]. Earnings Estimate Revisions - The current-year earnings estimates for Trip.com have been revised upward, with the Zacks Consensus Estimate increasing by 1.7% over the past month, indicating a positive trend in earnings estimate revisions [5]. Overall Positioning - Trip.com has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category, making it an attractive option for growth investors [6].

Group 1: Company Overview - Trip.com (TCOM) currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [2][6] - The company has seen significant price increases, with shares up 11.59% over the past week and 30.61% over the past month [3] - Over the past quarter, TCOM shares have risen 29.21%, and they are up 79.56% in the last year, outperforming the S&P 500 which moved 3.54% and 35.24% respectively [4] Group 2: Market Performance - TCOM's average 20-day trading volume is 7,454,343 shares, indicating strong market interest [4] - The Zacks Leisure and Recreation Services industry has remained flat over the past week, contrasting with TCOM's performance [3] Group 3: Earnings Outlook - In the past two months, one earnings estimate for TCOM has moved higher, increasing the consensus estimate from $3.16 to $3.36 [5] - For the next fiscal year, one estimate has also moved upwards with no downward revisions [5]