Trip.com (TCOM) – a travel company for flights, hotels and tour packages – is expected to report third-quarter earnings on Nov. 11. The Zacks’ forecasts last week were expecting the company’s Q3 earnings per share to be $0.15 per share and revenue at $740 million, down 49.5% from the same quarter a year ago.
Ahead of tomorrow’s earnings report, Trip.com’s share price yesterday jumped along with many market participants after Biden’s victory, and the good news about Pfizer’s Covid-19 vaccine trial, pushing its share price up into the close. Rising 13.85% to $36.57 (despite the USA100 losing -1.53%), this year’s full-year share price is up 9.03% and its current market capitalization is $21.79 billion.
In the past six months, Trip.com has made additional partnerships with the world’s leading airlines, including Bangkok Airways, Etihad Airways, Jeju Air, Thai Airways and China Airlines.
From a technical perspective, the sentiment of the market from the clarification of the US election and the risk-on of the Covid-19 vaccine news, is now biased positively and Trip.com could be no different, with potentially higher odds to the upside. If the results are in line or not much lower than what the market expects then it is possible that the company’s share price will continue to rise this week. Its target is the 2020 year high at the $38.90 zone, but if the results are disappointing and the outlook cautious, it is possible that the price will drop back to the recent high of $33.00.
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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