Trip.com Group Limited (TCOM) Q1 2025 Earnings Insights

May 20, 2025 2:00 AM - Alex Lavoie

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Trip.com Group Limited (NASDAQ:TCOM) Q1 2025 Earnings Overview

Earnings per Share (EPS): Trip.com Group Limited reported an EPS of $0.83 for Q1 2025, slightly missing the Zacks Consensus Estimate of $0.86 but showing improvement from the $0.81 reported in Q1 2024.

Revenue: The company generated $1.65 billion in revenue, aligning closely with analyst expectations of $1.68 billion and reflecting a 25% year-over-year increase, driven by robust growth in international travel demand.

Financial Health: TCOM maintains a solid balance sheet with a debt-to-equity ratio of 0.27 and a current ratio of 1.52, underscoring prudent debt management and strong liquidity.

Trip.com Group Limited (NASDAQ:TCOM), a global leader in travel services, provides hotel reservations, transportation ticketing, packaged tours, and corporate travel management. Despite a competitive market, TCOM's Q1 2025 earnings, released on May 19, 2025, demonstrated resilience amid evolving travel trends.

The company's EPS of $0.83 fell marginally short of the $0.86 consensus estimate but marked a slight improvement from the $0.81 reported in the prior year's first quarter. This performance reflects TCOM's ability to navigate macroeconomic challenges while capitalizing on recovering travel demand. Revenue reached $1.65 billion, nearly meeting the $1.68 billion forecast and showcasing a 25% year-over-year increase. International operations were a key driver, with TCOM's global online travel agency platform reporting over 70% year-over-year growth in bookings.

Executive Chairman James Liang attributed this to “sustained consumer confidence and favorable global travel policies.”

TCOM's financial metrics highlight its market position. The price-to-earnings (P/E) ratio stands at 20.1, suggesting a reasonable valuation relative to earnings. The price-to-sales (P/S) ratio is approximately 5.8, and the enterprise value to sales ratio is 5.6, reflecting investor confidence in TCOM's revenue growth. The company's enterprise value to operating cash flow ratio, while elevated at 21.5, aligns with its focus on long-term growth investments.

With a debt-to-equity ratio of 0.27, TCOM demonstrates conservative leverage, and its current ratio of 1.52 indicates strong coverage of short-term liabilities. CEO Jane Sun emphasized the company's commitment to innovation, stating, “We are enhancing our platform to deliver seamless, customer-focused travel solutions worldwide.” Looking ahead, TCOM remains well-positioned to benefit from the global travel recovery, supported by its diversified portfolio and strategic investments in technology.

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