Trip.com Group Limited (NASDAQ:TCOM) Earnings Preview

Trip.com Group Limited, trading as NASDAQ:TCOM, is a leading travel service provider. It offers a comprehensive range of travel services, including hotel reservations, transportation ticketing, packaged tours, and corporate travel management. As a major player in the travel industry, TCOM competes with other giants like Expedia and Booking Holdings. The company is set to release its first-quarter 2025 earnings on May 19.

Analysts expect TCOM to report earnings per share (EPS) of $0.86, with revenue projected at $13.8 billion. This reflects a positive outlook, as the company has consistently surpassed expectations in previous quarters. In the last quarter, TCOM reported an adjusted EPS of $0.60, exceeding the estimated $0.52, and saw a 23% increase in net revenue year over year.

Despite a decline in expected earnings per share from $6 to $5.57 compared to the same period last year, TCOM is projected to see an increase in quarterly revenue to $13.82 billion, up from $11.9 billion a year earlier. This growth is driven by strong hotel bookings and increased traffic, as highlighted by the company's robust performance in the travel and hospitality sector.

TCOM's financial metrics indicate a stable market position. The company has a price-to-earnings (P/E) ratio of approximately 19.14 and a price-to-sales ratio of about 5.78. Its enterprise value to sales ratio is around 5.58, and the enterprise value to operating cash flow ratio is notably high at approximately 871.81. These figures suggest a strong valuation in relation to its earnings and revenue.

The company's debt-to-equity ratio is relatively low at 0.28, indicating a conservative use of debt in its capital structure. Additionally, TCOM has a current ratio of approximately 1.51, reflecting its ability to cover short-term liabilities with short-term assets. As the earnings call approaches, analysts continue to revise their forecasts, reflecting dynamic market expectations surrounding TCOM's performance.