On June 26, Trip.com (TCOM) declined 5.01% overnight, trading at $38.39/share, with turnover of $512,100. The selloff followed the release of the company's Q1 earnings report, which revealed a sharp profit decline and disappointing forward guidance.
Trip.com reported Q1 revenue of RMB 16.2 billion, up 17% year-over-year and slightly above market expectations. However, net income attributable to shareholders came in at only RMB 2.499 billion, down 41.57% YoY, with adjusted EPS per ADS of RMB 5.73, missing the consensus estimate of RMB 6.09. More critically, the company guided Q2 net revenue growth to decelerate sharply to 3%-8%, potentially marking the slowest quarterly growth in four years. Management cited high energy prices, geopolitical volatility, and business rectification following an anti-monopoly investigation by the State Administration for Market Regulation as key headwinds. CMB International subsequently cut its target price by 14%, noting the weak Q2 guidance weighed heavily on sentiment. Citi maintained a Buy rating but flagged the investigation outcome and hotel business rectification as key risks to monitor.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments