TRIP Falls in First Hour of Trading

TripAdvisor (NASDAQ:TRIP) earnings for the travel review company’s third quarter of 2019 had TRIP stock falling in early trade on Thursday.

The company’s adjusted EPS of 58 cents missing Wall Street’s estimate of 69 cents. Revenue of $428 million was also well below analysts’ estimates of $458.61 million.

Adjusted per-share earnings were down 19% from 72 cents in the third quarter of 2018. Revenue comes in 7% lower YoY from $458 million.

Income from operations of $68 million is a 24% drop from $89 million reported during the same time last year.

The TripAdvisor earnings report also includes a net income of $50 million, or a 28% decrease from its net income of $69 million reported in Q3 2018.

TripAdvisor also announced a strategic partnership with Trip.com Group Limited that includes a joint venture, a content sharing agreement and a governance agreement

CEO Steve Kaufer said, "Q3 was more difficult than we anticipated, but we are taking action. We are driving non-auction revenue growth in our Hotels, Media & Platform and Experiencing & Dining segments. We are containing costs, and we are returning more capital to shareholders. We are also excited to announce our strategic partnership with Trip.com Group.”

TripAdvisor earnings also include news about a special cash dividend.

This dividend is $3.50 per share and is payable on Dec. 4, to shareholders as of Nov 20.

Shares tumbled $9.25, or 22.7%, to $31.54 early Thursday morning.