Cantor Fitzgerald Previews Tripadvisor, Expects In-Line Results

Tripadvisor Inc (NASDAQ: TRIP) is scheduled to report its third quarter results on Tuesday after market close. The consensus estimate calls for the company to earn $0.60 per share on revenue of $349 million.

Naved Khan of Cantor Fitzgerald previewed Tripadvisor's results in a note to clients on Tuesday.

"We believe that a generally positive read-across from Expedia on the health of online travel along with ongoing efforts by TripAdvisor to improve monetization (via mobile instant-book, meta, restaurant bookings) bode well for the latter's 3Q results," Khan wrote.

Khan expects Tripadvisor to earn $0.58 per share on revenue of $355 million.

The analyst is looking for a click-based revenue growth of 37.7 percent to $260.7 million, showing a quarter-over-quarter improvement from the 28.6 percent TripAdvisor recorded in its second quarter. Subscription revenues is expected to grow 70.5 percent from a year ago to $60.2 million, while the analyst expects display ad revenue to grow 11.6 percent from a year ago to $34.1 million.

Khan expects Tripadvisor's management to update its outlook for growth in revenue and EBITDA for 2014. The analyst also expects management to discuss its progress on improving monetization of meta-search and mobile and any potential impact from Google Inc's recent changes to its hotel meta-search offering.

Shares are Hold rated with a $94 price target.

Shares of Tripadvisor recently traded at $83.84, down 1.6 percent.