Trip.com (TCOM, Financial) experienced a significant drop in its stock price, falling over 12% after initially plummeting 14% following the release of its fourth-quarter earnings. This marks the largest intraday decline since October 2022. Although the company reported revenue that exceeded expectations, concerns were raised over its operating profit margin.
Citi analysts maintained a "buy" rating on the stock, noting that while fourth-quarter revenue was robust, the non-GAAP operating profit margin might have fallen short of some investors' expectations. Revenue surpassed consensus estimates by 4%, likely driven by group tours and corporate travel, with accommodation and transportation revenue slightly exceeding expectations due to Trip.com's growing market share.
Benchmark analysts commented that the fiscal year 2025 guidance appeared conservative, adding to investor concerns.
