Trip.com ADR earnings beat by ¥1.15, revenue topped estimates

Trip.com Group shares surged over 3% on Wednesday after the travel platform disclosed robust-than-anticipated adjusted earnings for the second quarter, with revenue also slightly surpassing Visible Alpha estimates. Despite reporting a net loss primarily due to a RMB5.2 billion anti-monopoly penalty, Trip.com's stock jumped 3.15% to HK$321.00 in late trading, outpacing the broader Hang Seng Index's 0.09% decline.

The results came in at RMB15.66 billion in revenue, up 6% year-over-year and exceeding the RMB15.56 billion Visible Alpha consensus by 0.7%. Adjusted earnings were particularly impressive, with non-GAAP diluted earnings per share reaching RMB7.27, surpassing the Visible Alpha model's RMB5.67 estimate by approximately 28%. Non-GAAP net income attributable to shareholders stood at RMB4.8 billion, 28% higher than the RMB5 billion in the previous year.

GAAP results were more muted, with a RMB2.4 billion net loss versus RMB4.9 billion net income in the prior year. Trip.com's international platform showed continued growth, with revenue climbing more than 50% year-over-year and inbound travel revenue surging at a high double-digit rate. Accommodation reservations saw a 6% increase to RMB6.6 billion, packaged-tour revenue rose 8% to RMB1.2 billion, and corporate travel revenue expanded 11% to RMB771 million.

However, transportation ticketing revenue fell 1% year-over-year to RMB5.4 billion and declined 12% sequentially due to high energy prices and geopolitical uncertainty.