Core Insights - Trip.com Group Limited reported strong financial results for the fourth quarter and full year of 2024, highlighting resilience in the travel market driven by increased traveler demand for exploration and cultural experiences [2][21] - The company is focused on investing in AI and promoting inbound travel to enhance the overall travel experience and expects continued growth in the industry [2] Financial Performance - For Q4 2024, net revenue was RMB12.7 billion (US$1.7 billion), a 23% increase year-over-year, but a 20% decrease from the previous quarter due to seasonality [3][21] - Full year 2024 net revenue reached RMB53.3 billion (US$7.3 billion), marking a 20% increase from 2023 [4] - Q4 2024 net income was RMB2.2 billion (US$300 million), up from RMB1.3 billion in Q4 2023 [22][23] - Full year 2024 net income attributable to shareholders was RMB17.1 billion (US$2.3 billion), compared to RMB9.9 billion in 2023 [24] Revenue Breakdown - Accommodation reservation revenue for Q4 2024 was RMB5.2 billion (US$709 million), a 33% increase year-over-year [4] - Transportation ticketing revenue for Q4 2024 was RMB4.8 billion (US$655 million), a 16% increase from the same period in 2023 [6] - Packaged-tour revenue for Q4 2024 was RMB870 million (US$119 million), a 24% increase year-over-year [8] - Corporate travel revenue for Q4 2024 was RMB702 million (US$96 million), an 11% increase from Q4 2023 [9] Cost and Expenses - Cost of revenue for Q4 2024 increased by 31% to RMB2.6 billion (US$362 million) compared to Q4 2023 [11] - Product development expenses for Q4 2024 rose by 16% to RMB3.4 billion (US$465 million) [13] - Sales and marketing expenses for Q4 2024 increased by 45% to RMB3.4 billion (US$462 million) [15] - General and administrative expenses for Q4 2024 increased by 19% to RMB1.0 billion (US$142 million) [17] Cash and Capital Return - As of December 31, 2024, the company had cash and cash equivalents totaling RMB90.0 billion (US$12.3 billion) [27] - The board of directors authorized a share repurchase program of up to US$400 million and a cash dividend of approximately US$200 million for the financial year 2024 [28]

Financial Results - Trip.com Group Limited (TCOM) is set to release its fourth-quarter financial results on February 24, with analysts expecting earnings of $3.95 per share, a decrease from $4.00 per share in the same period last year [1] - The company projects quarterly revenue of $12.32 billion, up from $10.32 billion a year earlier [1] Management Changes - On February 11, Trip.com announced the resignation of Mr. Junjie He, a director nominated by Baidu, and the appointment of Mr. Rong Luo, the executive vice president of Baidu Inc., as his successor [2] - Following this announcement, Trip.com shares increased by 1.4%, closing at $67.02 [2] Analyst Ratings - Benchmark analyst Fawne Jiang has a Buy rating with a price target of $80 [4] - Citigroup analyst Brian Gong maintains a Buy rating and raised the price target from $73 to $78 [4] - Barclays analyst Jiong Shao has an Overweight rating and increased the price target from $76 to $84 [4] - TD Cowen analyst Kevin Kopelman maintains a Buy rating and raised the price target from $56 to $71 [4] - Mizuho analyst James Lee has an Outperform rating and increased the price target from $65 to $78 [4]

Group 1: Company Performance - Trip.com closed at $66.11, reflecting a -0.85% change from the previous session, underperforming the S&P 500's daily loss of 0.43% [1] - Over the past month, Trip.com shares have decreased by 0.28%, lagging behind the Consumer Discretionary sector's gain of 14.82% and the S&P 500's gain of 2.6% [1] Group 2: Upcoming Earnings Report - Trip.com is scheduled to release its earnings on February 24, 2025, with projected earnings of $0.52 per share, indicating a year-over-year decline of 7.14% [2] - The consensus estimate for revenue is $1.69 billion, representing a 16.34% increase compared to the same quarter of the previous year [2] Group 3: Analyst Estimates and Ratings - Recent changes to analyst estimates for Trip.com reflect shifting business dynamics, with upward revisions indicating analysts' positive outlook on the company's operations [3] - Trip.com currently holds a Zacks Rank of 1 (Strong Buy), with no changes in the Zacks Consensus EPS estimate over the past month [5] Group 4: Valuation Metrics - Trip.com has a Forward P/E ratio of 16.71, which is lower than the industry average Forward P/E of 20.97, suggesting it is trading at a discount [6] - The company's PEG ratio is currently 0.6, compared to the Leisure and Recreation Services industry's average PEG ratio of 0.78 [7] Group 5: Industry Context - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 49, placing it in the top 20% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - Trip.com closed at $69.24, reflecting a -0.72% change from the previous day, underperforming the S&P 500's 0.01% loss, while the Dow dropped 0.37% and the Nasdaq increased by 0.41% [1] - Over the past month, Trip.com shares gained 5.97%, compared to a 9.91% gain in the Consumer Discretionary sector and a 4.88% gain in the S&P 500 [1] Group 2 - Trip.com is set to release its earnings on February 24, 2025, with projected EPS of $0.52, indicating a 7.14% decline from the same quarter last year, while revenue is expected to reach $1.69 billion, representing a 16.34% growth year-over-year [2] Group 3 - Recent modifications to analyst estimates for Trip.com are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Rank system, which incorporates estimate changes, has shown a correlation with stock price performance, with Trip.com currently holding a Zacks Rank of 1 (Strong Buy) [4][5] Group 4 - Trip.com has a Forward P/E ratio of 17.48, which is lower than the industry average of 20.57, and a PEG ratio of 0.63, compared to the industry average PEG ratio of 0.78 [6] Group 5 - The Leisure and Recreation Services industry, which includes Trip.com, has a Zacks Industry Rank of 37, placing it in the top 15% of over 250 industries, indicating strong performance potential [7]

Core Viewpoint - Trip.com Group Limited is set to announce its fourth quarter and full year results for 2024 on February 24, 2025, after market close [1] Group 1: Financial Announcement - The financial results announcement will take place on February 24, 2025, 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 [2] - The conference call will be available via live webcast and will be archived for twelve months [2] Group 2: Participation Details - Participants must pre-register to join the conference call using a provided registration link [2][3] - Upon registration, participants will receive dial-in numbers and a unique access PIN for the call [3] Group 3: Company Overview - Trip.com Group Limited is a leading global one-stop travel platform, offering a comprehensive suite of travel products and services [4] - The company operates under various brands, including Ctrip, Qunar, Trip.com, and Skyscanner, and aims to provide cost-effective travel bookings and support [4] - Founded in 1999, the company was listed on Nasdaq in 2003 and on HKEX in 2021 [4]

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Core Insights - Trip.com has consistently surpassed earnings estimates, with an average beat of 36.25% over the last two quarters [1][2] - The latest earnings report showed earnings of $1.25 per share against an estimate of $0.91, resulting in a surprise of 37.36% [2] - The previous quarter also saw a significant surprise, with actual earnings of $1 per share compared to an estimate of $0.74, yielding a surprise of 35.14% [2] Earnings Estimates - There has been a favorable change in earnings estimates for Trip.com, indicated by a positive Earnings ESP (Expected Surprise Prediction) [3][6] - The current Earnings ESP for Trip.com is +0.97%, suggesting analysts are optimistic about the company's earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy) indicates a high likelihood of another earnings beat [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] - A negative Earnings ESP does not necessarily indicate an earnings miss but reduces the predictive power of the metric [6]

Core Viewpoint - Trip.com Group Limited (TCOM) has shown significant stock performance, gaining 32.5% over the past six months, outperforming its industry and the S&P 500 Index [1] Group 1: Company Performance - The Zacks Consensus Estimate for TCOM's 2025 earnings per share (EPS) has increased from $3.77 to $3.98, indicating a year-over-year growth of 7.3% [3] - The earnings estimates for the first quarter of 2025 have also risen to 88 cents from 87 cents, reflecting a 6% growth from the previous year [3] - TCOM has consistently surpassed earnings expectations in the last four quarters, with an average surprise of 42.8% [3] Group 2: Market Demand and Growth Initiatives - TCOM is benefiting from robust travel demand, both domestically and internationally, as easing macro conditions have led to increased consumer optimism and travel sentiments [5] - The domestic travel market in China is particularly strong, with a focus on lesser-known destinations contributing to local tourism growth [6] - The company is investing in growth initiatives to enhance its product offerings, including a diversified portfolio of travel and hotel booking packages [7] Group 3: Technological Advancements - TCOM is integrating artificial intelligence (AI) into its services to improve customer experience and meet personalized demands [8] - The international OTA platform has become the most downloaded OTA app in several APAC markets, with air ticket and hotel bookings growing over 60% year-over-year [8] Group 4: Valuation and Financial Metrics - TCOM is currently trading at a discount compared to industry peers based on a forward 12-month price-to-earnings (P/E) ratio, indicating it remains an attractive investment option [10] - The company's trailing 12-month return on equity (ROE) stands at 12%, significantly higher than the industry's 1.2%, showcasing its efficiency in utilizing shareholders' funds [12]

Core Insights - The article discusses the importance of due diligence in financial decision-making, emphasizing that individuals should not rely solely on provided information for investment actions [2]. Group 1 - The content includes general news and publications, personal analysis, and opinions intended for educational and research purposes [2]. - It highlights that the information is not directed personally to any individual and does not consider specific financial situations or needs [2]. - The website may include advertisements and promotional content, with potential compensation from third parties [2]. Group 2 - The article mentions that cryptocurrencies and contracts for difference (CFDs) are complex instruments with a high risk of losing money [2]. - It encourages individuals to perform their own research before making investment decisions and to avoid investing in instruments that are not fully understood [2].

Brokerage Recommendations and ABR - Trip com currently has an average brokerage recommendation ABR of 1 13 on a scale of 1 to 5 Strong Buy to Strong Sell calculated based on the actual recommendations made by 19 brokerage firms An ABR of 1 13 approximates between Strong Buy and Buy [2] - Of the 19 recommendations that derive the current ABR 17 are Strong Buy and one is Buy Strong Buy and Buy respectively account for 89 5 and 5 3 of all recommendations [2] - Brokerage recommendations often have a strong positive bias due to the vested interest of brokerage firms in the stocks they cover For every Strong Sell recommendation brokerage firms assign five Strong Buy recommendations [5] Zacks Rank and Earnings Estimate Revisions - The Zacks Rank is a quantitative model designed to harness the power of earnings estimate revisions and is displayed in whole numbers 1 to 5 unlike the ABR which is displayed in decimals [8] - Earnings estimate revisions are at the core of the Zacks Rank and empirical research shows a strong correlation between trends in earnings estimate revisions and near term stock price movements [10] - The Zacks Rank is always timely in predicting future stock prices as it quickly reflects the revisions made by brokerage analysts to their earnings estimates [11] Trip com s Earnings Prospects - The Zacks Consensus Estimate for Trip com s current year earnings has increased 12 3 over the past month to 3 71 indicating growing optimism among analysts about the company s earnings prospects [12] - The recent change in the consensus estimate along with three other factors related to earnings estimates has resulted in a Zacks Rank 1 Strong Buy for Trip com [13] - The Buy equivalent ABR for Trip com may serve as a useful guide for investors considering the company s strong earnings estimate revisions and Zacks Rank [13]