TCOM - Trip.com surpasses expectations despite COVID-19 lockdowns in China

Trip.com (TCOM -2.8%) shares after the company reports revenue of $831M, beats by $14M, and adjusted EPS of $0.13, beats by $0.12. Shares are relatively steady post market-close The company blamed a total net revenue Q/Q decrease of 9% on natural disasters and new rounds of COVID-19 infections that affected multiple provinces in China. Net revenue fell 2% Y/Y. "In the beginning of the third quarter of 2021, the Company continued to experience steady recovery of both domestic and overseas business. However, in August and September 2021, a few waves of COVID-19 infections reemerged in certain regions of China, which restrained users' demand for the Company products," wrote the company. Cost of revenue for the third quarter of 2021 increased by 19% to RMB1.2B ($190M) from the same period in 2020, primarily due to an increase in compensation to customer service center personnel. Cost of revenue was relatively stable Q/Q.

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Trip.com surpasses expectations despite COVID-19 lockdowns in China