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728600.0
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2023-03-08 00:00:00 UTC
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REV Group (REVG) Q1 Earnings and Revenues Beat Estimates
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DESP
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https://www.nasdaq.com/articles/rev-group-revg-q1-earnings-and-revenues-beat-estimates
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nan
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REV Group (REVG) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 1,100%. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.28, delivering a surprise of 7.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
REV Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $583.5 million for the quarter ended January 2023, surpassing the Zacks Consensus Estimate by 15.61%. This compares to year-ago revenues of $537 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
REV Group shares have lost about 1.5% since the beginning of the year versus the S&P 500's gain of 3.8%.
What's Next for REV Group?
While REV Group has underperformed the market so far this year, the question that com
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Over the last four quarters, the company has surpassed consensus EPS estimates three times. The company has topped consensus revenue estimates two times over the last four quarters. REV Group shares have lost about 1.5% since the beginning of the year versus the S&P 500's gain of 3.8%.
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REV Group (REVG) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.01 per share. Over the last four quarters, the company has surpassed consensus EPS estimates three times. REV Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $583.5 million for the quarter ended January 2023, surpassing the Zacks Consensus Estimate by 15.61%.
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REV Group (REVG) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.01 per share. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.28, delivering a surprise of 7.69%. REV Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $583.5 million for the quarter ended January 2023, surpassing the Zacks Consensus Estimate by 15.61%.
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REV Group (REVG) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.13 per share a year ago. A quarter ago, it was expected that this company would post earnings of $0.26 per share when it actually produced earnings of $0.28, delivering a surprise of 7.69%.
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b4e90092-ecd9-43f6-890d-866d40ffdec7
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728601.0
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2023-02-21 00:00:00 UTC
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Matson (MATX) Q4 Earnings Surpass Estimates
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DESP
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https://www.nasdaq.com/articles/matson-matx-q4-earnings-surpass-estimates
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nan
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nan
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Matson (MATX) came out with quarterly earnings of $2.10 per share, beating the Zacks Consensus Estimate of $1.97 per share. This compares to earnings of $9.39 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.60%. A quarter ago, it was expected that this ocean transportation and logistics services company would post earnings of $6.75 per share when it actually produced earnings of $6.89, delivering a surprise of 2.07%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Matson, which belongs to the Zacks Transportation - Services industry, posted revenues of $801.6 million for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.21%. This compares to year-ago revenues of $1.27 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Matson shares have added about 12.1% since the beginning of the year versus the S&P 500's gain of 6.2%.
What's Next for Matson?
While Matson has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Matson: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.73 on $764.21 million in revenues for the coming quarter and $5.95 on $3.1 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022.
This online travel company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +82.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Matson, Inc. (MATX) : Free Stock Analysis Report
Despegar.com Corp. (DESP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter. Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter. Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter. Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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42a2cc32-cb0b-4c3f-927e-6cafab1ff9aa
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728602.0
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2023-02-21 00:00:00 UTC
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Matson (MATX) Q4 Earnings Surpass Estimates
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DESP
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https://www.nasdaq.com/articles/matson-matx-q4-earnings-surpass-estimates-0
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nan
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nan
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Matson (MATX) came out with quarterly earnings of $2.10 per share, beating the Zacks Consensus Estimate of $1.97 per share. This compares to earnings of $9.39 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.60%. A quarter ago, it was expected that this ocean transportation and logistics services company would post earnings of $6.75 per share when it actually produced earnings of $6.89, delivering a surprise of 2.07%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Matson, which belongs to the Zacks Transportation - Services industry, posted revenues of $801.6 million for the quarter ended December 2022, missing the Zacks Consensus Estimate by 1.21%. This compares to year-ago revenues of $1.27 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Matson shares have added about 12.1% since the beginning of the year versus the S&P 500's gain of 6.2%.
What's Next for Matson?
While Matson has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Matson: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.73 on $764.21 million in revenues for the coming quarter and $5.95 on $3.1 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022.
This online travel company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +82.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Matson, Inc. (MATX) : Free Stock Analysis Report
Despegar.com Corp. (DESP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter. Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter. Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended December 2022. Despegar.com's revenues are expected to be $146.56 million, up 17.7% from the year-ago quarter. Click to get this free report Matson, Inc. (MATX) : Free Stock Analysis Report Despegar.com Corp. (DESP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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888d48f0-719e-4741-9f13-deb5009ebf76
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728603.0
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2023-02-09 00:00:00 UTC
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Despegar.com (DESP) Shows Fast-paced Momentum But Is Still a Bargain Stock
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DESP
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https://www.nasdaq.com/articles/despegar.com-desp-shows-fast-paced-momentum-but-is-still-a-bargain-stock
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nan
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nan
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Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Despegar.com (DESP) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 27.6%, the stock of this online travel company is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DESP meets this criterion too, as the stock gained 14.6% over the past 12 weeks.
Moreover, the momentum for DESP is fast paced, as the stock currently has a beta of 1.89. This indicates that the stock moves 89% higher than the market in either direction.
Given this price performance, it is no surprise that DESP has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DESP earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. DESP is currently trading at 0.98 times its sales. In other words, investors need to pay only 98 cents for each dollar of sales.
So, DESP appears to have plenty of room to run, and that too at a fast pace.
In addition to DESP, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Despegar.com Corp. (DESP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. Despegar.com (DESP) is one of the several great candidates that made it through the screen. DESP meets this criterion too, as the stock gained 14.6% over the past 12 weeks.
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In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DESP earn a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. Despegar.com (DESP) is one of the several great candidates that made it through the screen.
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Given this price performance, it is no surprise that DESP has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. Despegar.com (DESP) is one of the several great candidates that made it through the screen. DESP meets this criterion too, as the stock gained 14.6% over the past 12 weeks.
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In addition to DESP, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Despegar.com (DESP) is one of the several great candidates that made it through the screen. DESP meets this criterion too, as the stock gained 14.6% over the past 12 weeks.
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728604.0
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2023-02-06 00:00:00 UTC
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Take the Zacks Approach to Beat the Market: Ulta Beauty, Clorox, Similarweb in Focus
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DESP
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https://www.nasdaq.com/articles/take-the-zacks-approach-to-beat-the-market%3A-ulta-beauty-clorox-similarweb-in-focus
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nan
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nan
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Two of the three most widely followed indexes closed the week higher on Friday, with the tech-heavy Nasdaq posting its fifth-straight weekly gain. The Nasdaq Composite continued to make gains on a tech rally, rising 3.3% for the week. The S&P 500 also advanced 1.6% for the week, with the Dow Jones Industrial Average remaining the only outlier, contracting 0.2%.
Most of the positivity seen in the market throughout the week arose out of the signals coming in from the FOMC meeting for February. The interest rate hike was brought down by the central bank to 25 bps, on expected lines, but more importantly, Fed chair Jerome Powell acknowledged that the disinflationary process had started.
Continued contraction of the manufacturing and construction sectors also validated investors’ hope that the Fed’s effort to slow down the economy was getting reflected. Trade flourished on the fact that the market was finally coming out of inflation.
However, the labor market remains robust, with employment numbers coming in much stronger than expected. This might keep market participants worried for the time being about what the Fed might make of these numbers, even as the central bank turns dovish after a long time.
The global scene also remains a concern, as other central banks have raised rates and reiterated that they would keep doing so in the near term.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Similarweb, Despegar Surge Following Zacks Rank Upgrade
Shares of Similarweb Ltd. SMWB have surged 38.1% since it was upgraded to a Zacks Rank #2 (Buy) on November 21.
Another stock, Despegar.com, Corp. DESP, which was also upgraded to a Zacks Rank #2 on November 23, has returned 29% since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 stocks here >>>
Check Similarweb's historical EPS and Sales here>>>
Check Despegar's historical EPS and Sales here>>>
Image Source: Zacks Investment Research
Zacks Recommendation Upgrade Drives Inter Parfums and Alps Alpine Higher
Shares of Inter Parfums, Inc. IPAR and Alps Alpine Co., Ltd. APELY have surged 28.9% and 15.9% since their Zacks Recommendation was upgraded to Outperform on November 23 and November 18, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>
Zacks Focus List Model Portfolio Sea, Ulta Beauty Soar
Shares of Sea Limited SE, which belongs to the Zacks Focus List, have soared 42.6% over the past 12 weeks. The stock was added to the Focus List on March 26, 2020. Another Focus-List holding, Ulta Beauty, Inc. ULTA, which was added to the portfolio on March 25,2020, has returned 21% over the past 12 weeks.
The Zacks Focus List is a model portfolio of 50 hand-picked stocks that possess the right fundamental ingredients to outperform the market over the next 12 months. These 50 stocks are picked from a long list of stocks with the highest Zacks Rank.
Since its inception on Feb 1, 1996, the Focus List portfolio has delivered an annualized return of +12.9%.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Church & Dwight and Tractor Supply Rapidly Advance
Church & Dwight Co., Inc. CHD, a component of our Earnings Certain Admiral Portfolio (ECAP), jumped 11.3% over the past 12 weeks. Tractor Supply Company TSCO followed Church & Dwight with 9.3% returns.
ECAP is a model portfolio of 30 concentrated, ultra-defensive, long-term Buy and Hold stocks.
With little to no turnover and annual rebalance periodicity, the ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Clorox, Illinois Tool Works Outperform Peers
The Clorox Company CLX, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 9.1% over the past 12 weeks. Another ECDP stock, Illinois Tool Works Inc. ITW, has climbed 9% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid the heightened market volatility contributed to this performance.
Check Clorox’s dividend history here>>>
Check Illinois Tool Works’ dividend history here>>>
With an extremely low Beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk. The ECDP has consistently outperformed the S&P 500 Dividend Aristocrats ETF NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
Tractor Supply Company (TSCO) : Free Stock Analysis Report
The Clorox Company (CLX) : Free Stock Analysis Report
Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Alps Electric (APELY) : Free Stock Analysis Report
ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports
Despegar.com Corp. (DESP) : Free Stock Analysis Report
Similarweb Ltd. (SMWB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are some of our key achievements: Similarweb, Despegar Surge Following Zacks Rank Upgrade Shares of Similarweb Ltd. SMWB have surged 38.1% since it was upgraded to a Zacks Rank #2 (Buy) on November 21. Another stock, Despegar.com, Corp. DESP, which was also upgraded to a Zacks Rank #2 on November 23, has returned 29% since then. This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 stocks here >>> Check Similarweb's historical EPS and Sales here>>> Check Despegar's historical EPS and Sales here>>>
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Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report Alps Electric (APELY) : Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Despegar.com Corp. (DESP) : Free Stock Analysis Report Similarweb Ltd. (SMWB) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are some of our key achievements: Similarweb, Despegar Surge Following Zacks Rank Upgrade Shares of Similarweb Ltd. SMWB have surged 38.1% since it was upgraded to a Zacks Rank #2 (Buy) on November 21. Another stock, Despegar.com, Corp. DESP, which was also upgraded to a Zacks Rank #2 on November 23, has returned 29% since then.
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This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 stocks here >>> Check Similarweb's historical EPS and Sales here>>> Check Despegar's historical EPS and Sales here>>> Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Tractor Supply Company (TSCO) : Free Stock Analysis Report The Clorox Company (CLX) : Free Stock Analysis Report Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report Alps Electric (APELY) : Free Stock Analysis Report ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports Despegar.com Corp. (DESP) : Free Stock Analysis Report Similarweb Ltd. (SMWB) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are some of our key achievements: Similarweb, Despegar Surge Following Zacks Rank Upgrade Shares of Similarweb Ltd. SMWB have surged 38.1% since it was upgraded to a Zacks Rank #2 (Buy) on November 21.
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This stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 to Zacks Rank #5 (Strong Sell), has an impressive externally audited track record, with Zacks Rank #1 stocks generating an average annual return of +24.8% since 1988.You can see the complete list of today’s Zacks Rank #1 stocks here >>> Check Similarweb's historical EPS and Sales here>>> Check Despegar's historical EPS and Sales here>>> Here are some of our key achievements: Similarweb, Despegar Surge Following Zacks Rank Upgrade Shares of Similarweb Ltd. SMWB have surged 38.1% since it was upgraded to a Zacks Rank #2 (Buy) on November 21. Another stock, Despegar.com, Corp. DESP, which was also upgraded to a Zacks Rank #2 on November 23, has returned 29% since then.
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2023-01-24 00:00:00 UTC
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Here Is Why Bargain Hunters Would Love Fast-paced Mover Despegar.com (DESP)
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DESP
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https://www.nasdaq.com/articles/here-is-why-bargain-hunters-would-love-fast-paced-mover-despegar.com-desp
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Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Despegar.com (DESP) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 33.3% over the past four weeks positions the stock of this online travel company well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. DESP meets this criterion too, as the stock gained 4.6% over the past 12 weeks.
Moreover, the momentum for DESP is fast paced, as the stock currently has a beta of 1.82. This indicates that the stock moves 82% higher than the market in either direction.
Given this price performance, it is no surprise that DESP has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DESP earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. DESP is currently trading at 0.92 times its sales. In other words, investors need to pay only 92 cents for each dollar of sales.
So, DESP appears to have plenty of room to run, and that too at a fast pace.
In addition to DESP, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Despegar.com Corp. (DESP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. Despegar.com (DESP) is one of the several great candidates that made it through the screen. DESP meets this criterion too, as the stock gained 4.6% over the past 12 weeks.
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In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped DESP earn a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. Despegar.com (DESP) is one of the several great candidates that made it through the screen.
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Given this price performance, it is no surprise that DESP has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Most importantly, despite possessing fast-paced momentum features, DESP is trading at a reasonable valuation. Despegar.com (DESP) is one of the several great candidates that made it through the screen.
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In addition to DESP, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. Despegar.com (DESP) is one of the several great candidates that made it through the screen. DESP meets this criterion too, as the stock gained 4.6% over the past 12 weeks.
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2022-12-08 00:00:00 UTC
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Here's Why Despegar.com (DESP) is Poised for a Turnaround After Losing 18.4% in 4 Weeks
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DESP
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https://www.nasdaq.com/articles/heres-why-despegar.com-desp-is-poised-for-a-turnaround-after-losing-18.4-in-4-weeks
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Despegar.com (DESP) has been beaten down lately with too much selling pressure. While the stock has lost 18.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
How to Determine if a Stock is Oversold
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefitting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for DESP
The RSI reading of 28.62 for DESP is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for DESP has increased 9.1%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, DESP currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Just Released: Zacks Unveils the Top 5 EV Stocks for 2022
For several months now, electric vehicles have been disrupting the $82 billion automotive industry. And that disruption is only getting bigger thanks to sky-high gas prices. Even titans in the financial industry including George Soros, Jeff Bezos, and Ray Dalio have invested in this unstoppable wave. You don't want to be sitting on your hands while EV stocks break out and climb to new highs. In a new free report, Zacks is revealing the top 5 EV stocks for investors. Next year, don't look back on today wishing you had taken advantage of this opportunity.
>>Send me my free report revealing the top 5 EV stocks
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Despegar.com Corp. (DESP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com (DESP) has been beaten down lately with too much selling pressure. Why a Trend Reversal is Due for DESP The RSI reading of 28.62 for DESP is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Over the last 30 days, the consensus EPS estimate for DESP has increased 9.1%.
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Despegar.com (DESP) has been beaten down lately with too much selling pressure. Why a Trend Reversal is Due for DESP The RSI reading of 28.62 for DESP is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Over the last 30 days, the consensus EPS estimate for DESP has increased 9.1%.
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Why a Trend Reversal is Due for DESP The RSI reading of 28.62 for DESP is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Despegar.com (DESP) has been beaten down lately with too much selling pressure. Over the last 30 days, the consensus EPS estimate for DESP has increased 9.1%.
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Despegar.com (DESP) has been beaten down lately with too much selling pressure. Why a Trend Reversal is Due for DESP The RSI reading of 28.62 for DESP is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand. Over the last 30 days, the consensus EPS estimate for DESP has increased 9.1%.
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2022-11-21 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-53
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nan
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Last week was a letdown for investors long the market after a strong rally the week before. The "three stocks to avoid" in my column that I thought were going to lose to the market last week -- Coinbase, Despegar.com , and Bowlero -- fell 21%, 12%, and 12%, respectively, averaging out to a 15% plunge.
The S&P 500 experienced only a 0.7% move lower. I was right. I have been correct in 36 of the past 57 weeks, or 63% of the time.
Now let's look at the week ahead. I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week. Let's go over my near-term concerns with all three investments.
Image source: Getty Images.
1. Best Buy
Best Buy's revival a few years ago was a thing of beauty. Now we're seeing that the last major consumer-electronics superstore chain still standing is on wobbly legs.
The retailer reports fresh financials on Tuesday morning, and it won't be pretty. Analysts see revenue clocking in 13% lower than the prior-year's fiscal third quarter. Its profit is expected to be cut in half.
The near-term outlook is uninspiring. Wall Street pros see revenue slipping 11% for the current holiday quarter, as well as the entire fiscal 2023 year that ends in January. Profitability should take a bigger hit. If you're buying Best Buy for that chunky 4.9% yield, that's a dicey proposition when its bottom line is going the wrong way.
Rising costs and the inability of a brick-and-mortar chain to compete on price with bare-boned online merchants are making life hard for Best Buy, again. Now we have a potentially dimming economy setting back demand for consumer electronics.
To be fair, Best Buy's renaissance wasn't that exciting. You have to go back to fiscal 2009 -- 14 years -- to find the last time that this chain delivered top-line gains in the double digits.
2. Luckin Coffee
If you were to construct the perfect stock to avoid in a lab, it would probably look a lot like Luckin Coffee. It's a China-based company at a time when most investors outside of the country are steering clear of the market as geopolitical tensions and anti-capitalism fervor rise.
Let's also not forget that Luckin Coffee is a stock that -- like its hot java -- already burned investors before. You surely remember the accounting scandal of 2020.
Have you checked on Luckin Coffee stock lately? The stock is a 20-bagger off its C-suite drama low. The shares ended this past week within 0.5% of a new two-year high, nearly quadrupling from this-year's springtime bottom. We'll get an update on how it's brewing when it pours a cup of third-quarter results on Tuesday.
Luckin Coffee has done a commendable job turning things around. After years of losses, it was profitable in 2021. Revenue continued to grow.
However, Luckin Coffee's top-line gains have decelerated for four consecutive quarters. It also posted a loss in its previous quarter.
With the Chinese economy slowing as a result of the COVID-19 crisis and alienating international trade partners, it's hard to get excited about Luckin Coffee. It may seem like a low-priced indulgence, but it's a luxury that consumers will avoid if they need to save their money for more-pressing expenses.
3. Apple
Let's wrap-up this-week's list by picking on the country's most valuable company by market cap. I'm a longtime fan and investor in Apple, but I can see why it's a scary stock to hold heading into this particular holiday shopping season. The economy is on iffy footing, credit card debit is rising, and Apple isn't going to be immune from consumers steering clear of big-ticket purchases this season.
Apple held up well when most tech stocks got slammed earlier this year, but the class act of Cupertino is finally proving mortal. It doesn't help that its annual refresh of popular products wasn't overly impressive. With money already tight, it's easy to see consumers ride this year out and see what Apple springs on us in 2023.
Analysts aren't excited. They see revenue and earnings per share rising a mere 3% and 2%, respectively, for the new fiscal year.
It's going to be a bumpy road for some of these investments. If you're looking for safe stocks, you aren't likely to find them in Best Buy, Luckin Coffee, and Apple this week.
10 stocks we like better than Best Buy
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Rick Munarriz has positions in Apple. The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The "three stocks to avoid" in my column that I thought were going to lose to the market last week -- Coinbase, Despegar.com , and Bowlero -- fell 21%, 12%, and 12%, respectively, averaging out to a 15% plunge. The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. Rising costs and the inability of a brick-and-mortar chain to compete on price with bare-boned online merchants are making life hard for Best Buy, again.
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The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. The "three stocks to avoid" in my column that I thought were going to lose to the market last week -- Coinbase, Despegar.com , and Bowlero -- fell 21%, 12%, and 12%, respectively, averaging out to a 15% plunge. You have to go back to fiscal 2009 -- 14 years -- to find the last time that this chain delivered top-line gains in the double digits.
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The "three stocks to avoid" in my column that I thought were going to lose to the market last week -- Coinbase, Despegar.com , and Bowlero -- fell 21%, 12%, and 12%, respectively, averaging out to a 15% plunge. The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. I see Best Buy (NYSE: BBY), Luckin Coffee (OTC: LKNC.Y), and Apple (NASDAQ: AAPL) as stocks you might want to consider steering clear of this week.
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The Motley Fool has positions in and recommends Apple, Best Buy, Coinbase Global, Inc., Despegar.com, Corp., and Luckin Coffee Inc. The "three stocks to avoid" in my column that I thought were going to lose to the market last week -- Coinbase, Despegar.com , and Bowlero -- fell 21%, 12%, and 12%, respectively, averaging out to a 15% plunge. If you're looking for safe stocks, you aren't likely to find them in Best Buy, Luckin Coffee, and Apple this week.
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2022-11-17 00:00:00 UTC
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Despegar.com (DESP) Reports Q3 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/despegar.com-desp-reports-q3-loss-tops-revenue-estimates-0
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nan
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Despegar.com (DESP) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to loss of $0.30 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -31.25%. A quarter ago, it was expected that this online travel company would post a loss of $0.15 per share when it actually produced a loss of $0.23, delivering a surprise of -53.33%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $145.6 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 6.68%. This compares to year-ago revenues of $83.37 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Despegar.com shares have lost about 36.9% since the beginning of the year versus the S&P 500's decline of -16.9%.
What's Next for Despegar.com?
While Despegar.com has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Despegar.com: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.08 on $155.55 million in revenues for the coming quarter and -$0.77 on $546.93 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Transportation sector, Golar LNG (GLNG), has yet to report results for the quarter ended September 2022.
This operator of carriers for natural gas shipping is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +2500%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Golar LNG's revenues are expected to be $64.95 million, down 38.4% from the year-ago quarter.
One Tiny Company Could Shake the EV Industry
Zacks Aggressive Growth expert Brian Bolan has pinpointed a U.S. manufacturer with an under-$5 stock price that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla just as soaring gas prices and desire for energy independence are set to drive the EV market to $1 trillion in 5 years.
See This Stock Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Despegar.com Corp. (DESP): Free Stock Analysis Report
Golar LNG Limited (GLNG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com (DESP) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.16. Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $145.6 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 6.68%. Despegar.com shares have lost about 36.9% since the beginning of the year versus the S&P 500's decline of -16.9%.
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Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $145.6 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 6.68%. Despegar.com (DESP) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.16. Despegar.com shares have lost about 36.9% since the beginning of the year versus the S&P 500's decline of -16.9%.
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Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $145.6 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 6.68%. Despegar.com (DESP) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.16. Despegar.com shares have lost about 36.9% since the beginning of the year versus the S&P 500's decline of -16.9%.
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Despegar.com (DESP) came out with a quarterly loss of $0.21 per share versus the Zacks Consensus Estimate of a loss of $0.16. Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $145.6 million for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 6.68%. Despegar.com shares have lost about 36.9% since the beginning of the year versus the S&P 500's decline of -16.9%.
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2022-11-02 00:00:00 UTC
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Matson (MATX) Q3 Earnings and Revenues Top Estimates
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DESP
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https://www.nasdaq.com/articles/matson-matx-q3-earnings-and-revenues-top-estimates
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nan
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nan
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Matson (MATX) came out with quarterly earnings of $6.89 per share, beating the Zacks Consensus Estimate of $6.75 per share. This compares to earnings of $6.53 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 2.07%. A quarter ago, it was expected that this ocean transportation and logistics services company would post earnings of $9.38 per share when it actually produced earnings of $9.49, delivering a surprise of 1.17%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Matson, which belongs to the Zacks Transportation - Services industry, posted revenues of $1.11 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 5.94%. This compares to year-ago revenues of $1.07 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Matson shares have lost about 16.8% since the beginning of the year versus the S&P 500's decline of -19.1%.
What's Next for Matson?
While Matson has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Matson: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $4.06 on $928.67 million in revenues for the coming quarter and $30.29 on $4.41 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022.
This online travel company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +46.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter.
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Matson, Inc. (MATX): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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908c6055-e6c7-430c-a621-470b0d97b787
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728610.0
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2022-10-27 00:00:00 UTC
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Hub Group (HUBG) Q3 Earnings Surpass Estimates
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DESP
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https://www.nasdaq.com/articles/hub-group-hubg-q3-earnings-surpass-estimates
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nan
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nan
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Hub Group (HUBG) came out with quarterly earnings of $2.61 per share, beating the Zacks Consensus Estimate of $2.41 per share. This compares to earnings of $1.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 8.30%. A quarter ago, it was expected that this transportation management company would post earnings of $2.53 per share when it actually produced earnings of $3.03, delivering a surprise of 19.76%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Hub Group, which belongs to the Zacks Transportation - Services industry, posted revenues of $1.36 billion for the quarter ended September 2022, missing the Zacks Consensus Estimate by 5.23%. This compares to year-ago revenues of $1.08 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hub Group shares have lost about 10.9% since the beginning of the year versus the S&P 500's decline of -19.6%.
What's Next for Hub Group?
While Hub Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hub Group: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.32 on $1.48 billion in revenues for the coming quarter and $10.38 on $5.61 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022.
This online travel company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +46.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter.
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Hub Group, Inc. (HUBG): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended September 2022. Despegar.com's revenues are expected to be $136.48 million, up 63.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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d942d1af-8974-452c-8cad-47c1f7bd0832
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728611.0
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2022-10-05 00:00:00 UTC
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Strong week for Despegar.com (NYSE:DESP) shareholders doesn't alleviate pain of five-year loss
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DESP
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https://www.nasdaq.com/articles/strong-week-for-despegar.com-nyse%3Adesp-shareholders-doesnt-alleviate-pain-of-five-year
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nan
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nan
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Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 12% in the last week. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. Indeed, the share price is down a whopping 80% in that time. It's true that the recent bounce could signal the company is turning over a new leaf, but we are not so sure. The real question is whether the business can leave its past behind and improve itself over the years ahead. While a drop like that is definitely a body blow, money isn't as important as health and happiness.
While the last five years has been tough for Despegar.com shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.
Despegar.com wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last five years Despegar.com saw its revenue shrink by 15% per year. That's definitely a weaker result than most pre-profit companies report. So it's not that strange that the share price dropped 13% per year in that period. We don't think this is a particularly promising picture. Ironically, that behavior could create an opportunity for the contrarian investor - but only if there are good reasons to predict a brighter future.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
NYSE:DESP Earnings and Revenue Growth October 5th 2022
If you are thinking of buying or selling Despegar.com stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We regret to report that Despegar.com shareholders are down 45% for the year. Unfortunately, that's worse than the broader market decline of 17%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 13% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
We will like Despegar.com better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:DESP Earnings and Revenue Growth October 5th 2022 If you are thinking of buying or selling Despegar.com stock, you should check out this FREE detailed report on its balance sheet. Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 12% in the last week. While the last five years has been tough for Despegar.com shareholders, this past week has shown signs of promise.
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NYSE:DESP Earnings and Revenue Growth October 5th 2022 If you are thinking of buying or selling Despegar.com stock, you should check out this FREE detailed report on its balance sheet. Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 12% in the last week. While the last five years has been tough for Despegar.com shareholders, this past week has shown signs of promise.
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NYSE:DESP Earnings and Revenue Growth October 5th 2022 If you are thinking of buying or selling Despegar.com stock, you should check out this FREE detailed report on its balance sheet. Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 12% in the last week. While the last five years has been tough for Despegar.com shareholders, this past week has shown signs of promise.
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Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 12% in the last week. In the last five years Despegar.com saw its revenue shrink by 15% per year. While the last five years has been tough for Despegar.com shareholders, this past week has shown signs of promise.
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613c9749-0146-4bd5-ac4a-3533050cf784
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728612.0
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2022-08-21 00:00:00 UTC
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US$11.18: That's What Analysts Think Despegar.com, Corp. (NYSE:DESP) Is Worth After Its Latest Results
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DESP
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https://www.nasdaq.com/articles/us%2411.18%3A-thats-what-analysts-think-despegar.com-corp.-nyse%3Adesp-is-worth-after-its-latest
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nan
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nan
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Despegar.com, Corp. (NYSE:DESP) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$8.27 in the week after its latest quarterly results. Revenues of US$134m beat expectations by a respectable 5.3%, although statutory losses per share increased. Despegar.com lost US$0.24, which was 60% more than what the analysts had included in their models. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
NYSE:DESP Earnings and Revenue Growth August 21st 2022
Taking into account the latest results, the consensus forecast from Despegar.com's four analysts is for revenues of US$547.2m in 2022, which would reflect a sizeable 20% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 62% to US$0.64. Before this earnings announcement, the analysts had been modelling revenues of US$535.8m and losses of US$0.84 per share in 2022. So it seems there's been a definite increase in optimism about Despegar.com's future following the latest consensus numbers, with a considerable decrease in the loss per share forecasts in particular.
Yet despite these upgrades, the analysts cut their price target 7.8% to US$11.18, implicitly signalling that the ongoing losses are likely to weigh negatively on Despegar.com's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Despegar.com at US$15.00 per share, while the most bearish prices it at US$9.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Despegar.com's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 45% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. Not only are Despegar.com's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Despegar.com. Long-term earnings power is much more important than next year's profits. We have forecasts for Despegar.com going out to 2024, and you can see them free on our platform here.
We also provide an overview of the Despegar.com Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (NYSE:DESP) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$8.27 in the week after its latest quarterly results. Despegar.com lost US$0.24, which was 60% more than what the analysts had included in their models. NYSE:DESP Earnings and Revenue Growth August 21st 2022 Taking into account the latest results, the consensus forecast from Despegar.com's four analysts is for revenues of US$547.2m in 2022, which would reflect a sizeable 20% improvement in sales compared to the last 12 months.
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NYSE:DESP Earnings and Revenue Growth August 21st 2022 Taking into account the latest results, the consensus forecast from Despegar.com's four analysts is for revenues of US$547.2m in 2022, which would reflect a sizeable 20% improvement in sales compared to the last 12 months. Despegar.com, Corp. (NYSE:DESP) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$8.27 in the week after its latest quarterly results. Despegar.com lost US$0.24, which was 60% more than what the analysts had included in their models.
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NYSE:DESP Earnings and Revenue Growth August 21st 2022 Taking into account the latest results, the consensus forecast from Despegar.com's four analysts is for revenues of US$547.2m in 2022, which would reflect a sizeable 20% improvement in sales compared to the last 12 months. Despegar.com, Corp. (NYSE:DESP) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$8.27 in the week after its latest quarterly results. Despegar.com lost US$0.24, which was 60% more than what the analysts had included in their models.
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NYSE:DESP Earnings and Revenue Growth August 21st 2022 Taking into account the latest results, the consensus forecast from Despegar.com's four analysts is for revenues of US$547.2m in 2022, which would reflect a sizeable 20% improvement in sales compared to the last 12 months. Despegar.com, Corp. (NYSE:DESP) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$8.27 in the week after its latest quarterly results. Despegar.com lost US$0.24, which was 60% more than what the analysts had included in their models.
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e3ce1a6e-fedd-4131-b96e-c1536992d8f3
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728613.0
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2022-08-17 00:00:00 UTC
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Pre-Market Earnings Report for August 18, 2022 : EL, NTES, NICE, BJ, TPR, KSS, MSGS, CSIQ, SPTN, CAN, DESP, CALT
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-18-2022-%3A-el-ntes-nice-bj-tpr-kss-msgs-csiq-sptn-0
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nan
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nan
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The following companies are expected to report earnings prior to market open on 08/18/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Estee Lauder Companies, Inc. (EL)is reporting for the quarter ending June 30, 2022. The cosmetic & toiletries company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.32. This value represents a 58.97% decrease compared to the same quarter last year. In the past year EL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 14.46%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EL is 38.78 vs. an industry ratio of 27.50, implying that they will have a higher earnings growth than their competitors in the same industry.
NetEase, Inc. (NTES)is reporting for the quarter ending June 30, 2022. The internet software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.94. This value represents a 16.05% increase compared to the same quarter last year. In the past year NTES has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 7.14%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NTES is 23.59 vs. an industry ratio of -12.60, implying that they will have a higher earnings growth than their competitors in the same industry.
NICE Ltd (NICE)is reporting for the quarter ending June 30, 2022. The internet software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.32. This value represents a 10.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NICE is 41.78 vs. an industry ratio of -46.00, implying that they will have a higher earnings growth than their competitors in the same industry.
BJ's Wholesale Club Holdings, Inc. (BJ)is reporting for the quarter ending July 31, 2022. The business services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.82. This value represents a no change for the same quarter last year. In the past year BJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 19.18%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for BJ is 20.55 vs. an industry ratio of -22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Tapestry, Inc. (TPR)is reporting for the quarter ending June 30, 2022. The retail (shoe) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.78. This value represents a 5.41% increase compared to the same quarter last year. In the past year TPR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 27.5%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TPR is 10.73 vs. an industry ratio of 12.00.
Kohl's Corporation (KSS)is reporting for the quarter ending July 31, 2022. The retail company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.08. This value represents a 56.45% decrease compared to the same quarter last year. KSS missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -85.33%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for KSS is 9.00 vs. an industry ratio of 7.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Madison Square Garden Sports Corp. (MSGS)is reporting for the quarter ending June 30, 2022. The leisure (recreational) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.31. This value represents a 115.27% decrease compared to the same quarter last year. MSGS missed the consensus earnings per share in the 1st calendar quarter of 2022 by -25.37%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MSGS is 242.48 vs. an industry ratio of 49.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Canadian Solar Inc. (CSIQ)is reporting for the quarter ending June 30, 2022. The solar company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.70. This value represents a 288.89% increase compared to the same quarter last year. CSIQ missed the consensus earnings per share in the 4th calendar quarter of 2021 by -55.26%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CSIQ is 13.05 vs. an industry ratio of 95.80.
SpartanNash Company (SPTN)is reporting for the quarter ending June 30, 2022. The wholesale food company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.58. This value represents a 7.41% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SPTN is 14.56 vs. an industry ratio of 15.00.
Canaan Inc. (CAN)is reporting for the quarter ending June 30, 2022. The computer software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.40. This value represents a 166.67% increase compared to the same quarter last year. In the past year CAN has met analyst expectations once Zacks Investment Research reports that the 2022 Price to Earnings ratio for CAN is 3.67 vs. an industry ratio of 18.00.
Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The transportation services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.15. This value represents a 53.13% increase compared to the same quarter last year. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
Calliditas Therapeutics AB (CALT)is reporting for the quarter ending June 30, 2022. The drug company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.97. This value represents a 27.63% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CALT is -7.67 vs. an industry ratio of 3.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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fa34323e-b346-4027-a0e5-82286b7d32e9
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728614.0
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2022-08-17 00:00:00 UTC
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Pre-Market Earnings Report for August 18, 2022 : EL, NTES, NICE, BJ, TPR, KSS, MSGS, CSIQ, SPTN, CAN, DESP, CALT
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-18-2022-%3A-el-ntes-nice-bj-tpr-kss-msgs-csiq-sptn-can
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nan
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nan
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The following companies are expected to report earnings prior to market open on 08/18/2022. Visit our Earnings Calendar for a full list of expected earnings releases.
Estee Lauder Companies, Inc. (EL)is reporting for the quarter ending June 30, 2022. The cosmetic & toiletries company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.32. This value represents a 58.97% decrease compared to the same quarter last year. In the past year EL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 14.46%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for EL is 38.78 vs. an industry ratio of 27.50, implying that they will have a higher earnings growth than their competitors in the same industry.
NetEase, Inc. (NTES)is reporting for the quarter ending June 30, 2022. The internet software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.94. This value represents a 16.05% increase compared to the same quarter last year. In the past year NTES has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 7.14%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NTES is 23.59 vs. an industry ratio of -12.60, implying that they will have a higher earnings growth than their competitors in the same industry.
NICE Ltd (NICE)is reporting for the quarter ending June 30, 2022. The internet software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.32. This value represents a 10.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for NICE is 41.78 vs. an industry ratio of -46.00, implying that they will have a higher earnings growth than their competitors in the same industry.
BJ's Wholesale Club Holdings, Inc. (BJ)is reporting for the quarter ending July 31, 2022. The business services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.82. This value represents a no change for the same quarter last year. In the past year BJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 19.18%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for BJ is 20.55 vs. an industry ratio of -22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Tapestry, Inc. (TPR)is reporting for the quarter ending June 30, 2022. The retail (shoe) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.78. This value represents a 5.41% increase compared to the same quarter last year. In the past year TPR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 27.5%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TPR is 10.73 vs. an industry ratio of 12.00.
Kohl's Corporation (KSS)is reporting for the quarter ending July 31, 2022. The retail company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.08. This value represents a 56.45% decrease compared to the same quarter last year. KSS missed the consensus earnings per share in the 2nd calendar quarter of 2022 by -85.33%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for KSS is 9.00 vs. an industry ratio of 7.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Madison Square Garden Sports Corp. (MSGS)is reporting for the quarter ending June 30, 2022. The leisure (recreational) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.31. This value represents a 115.27% decrease compared to the same quarter last year. MSGS missed the consensus earnings per share in the 1st calendar quarter of 2022 by -25.37%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MSGS is 242.48 vs. an industry ratio of 49.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Canadian Solar Inc. (CSIQ)is reporting for the quarter ending June 30, 2022. The solar company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.70. This value represents a 288.89% increase compared to the same quarter last year. CSIQ missed the consensus earnings per share in the 4th calendar quarter of 2021 by -55.26%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CSIQ is 13.05 vs. an industry ratio of 95.80.
SpartanNash Company (SPTN)is reporting for the quarter ending June 30, 2022. The wholesale food company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.58. This value represents a 7.41% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SPTN is 14.56 vs. an industry ratio of 15.00.
Canaan Inc. (CAN)is reporting for the quarter ending June 30, 2022. The computer software company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.40. This value represents a 166.67% increase compared to the same quarter last year. In the past year CAN has met analyst expectations once Zacks Investment Research reports that the 2022 Price to Earnings ratio for CAN is 3.67 vs. an industry ratio of 18.00.
Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The transportation services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.15. This value represents a 53.13% increase compared to the same quarter last year. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
Calliditas Therapeutics AB (CALT)is reporting for the quarter ending June 30, 2022. The drug company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.97. This value represents a 27.63% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for CALT is -7.67 vs. an industry ratio of 3.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2022. The last two quarters DESP had negative earnings surprises; the latest report they missed by -221.43%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for DESP is -10.61 vs. an industry ratio of 8.20.
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88e9fc94-be9a-4d04-aa78-93ae76bed0b2
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728615.0
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2022-08-09 00:00:00 UTC
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Spirit (SAVE) Reports Q2 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/spirit-save-reports-q2-loss-tops-revenue-estimates
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nan
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nan
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Spirit (SAVE) came out with a quarterly loss of $0.30 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to loss of $0.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 11.76%. A quarter ago, it was expected that this airline would post a loss of $1.54 per share when it actually produced a loss of $1.60, delivering a surprise of -3.90%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Spirit, which belongs to the Zacks Transportation - Airline industry, posted revenues of $1.37 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $859.31 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Spirit shares have added about 12.8% since the beginning of the year versus the S&P 500's decline of -13.1%.
What's Next for Spirit?
While Spirit has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Spirit: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.11 on $1.35 billion in revenues for the coming quarter and -$2.12 on $5.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Transportation sector, Despegar.com (DESP), has yet to report results for the quarter ended June 2022.
This online travel company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +53.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter.
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Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the broader Zacks Transportation sector, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the broader Zacks Transportation sector, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the broader Zacks Transportation sector, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the broader Zacks Transportation sector, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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3072436b-d01b-4560-b930-03eefeb92d3f
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728616.0
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2022-08-08 00:00:00 UTC
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PowerFleet (PWFL) Q2 Earnings and Revenues Beat Estimates
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DESP
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https://www.nasdaq.com/articles/powerfleet-pwfl-q2-earnings-and-revenues-beat-estimates
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nan
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nan
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PowerFleet (PWFL) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 225%. A quarter ago, it was expected that this maker of tracking and communications technology for fleet vehicles would post a loss of $0.02 per share when it actually produced a loss of $0.06, delivering a surprise of -200%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
PowerFleet, which belongs to the Zacks Transportation - Services industry, posted revenues of $34.59 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.48%. This compares to year-ago revenues of $33.55 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PowerFleet shares have lost about 46% since the beginning of the year versus the S&P 500's decline of -13%.
What's Next for PowerFleet?
While PowerFleet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PowerFleet: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $33.43 million in revenues for the coming quarter and -$0.10 on $137.85 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended June 2022.
This online travel company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +53.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter.
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PowerFleet, Inc. (PWFL): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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One other stock from the same industry, Despegar.com (DESP), is yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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ee1760c4-7529-440f-a876-6468224b0fea
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728617.0
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2022-08-03 00:00:00 UTC
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U.S. Xpress (USX) Reports Q2 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/u.s.-xpress-usx-reports-q2-loss-tops-revenue-estimates
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nan
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nan
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U.S. Xpress (USX) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of $0.05. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -200%. A quarter ago, it was expected that this company would post a loss of $0.03 per share when it actually produced a loss of $0.02, delivering a surprise of 33.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
U.S. Xpress, which belongs to the Zacks Transportation - Services industry, posted revenues of $553.7 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 0.99%. This compares to year-ago revenues of $475.02 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
U.S. Xpress shares have lost about 42.4% since the beginning of the year versus the S&P 500's decline of -14.2%.
What's Next for U.S. Xpress?
While U.S. Xpress has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for U.S. Xpress: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.11 on $543.95 million in revenues for the coming quarter and $0.30 on $2.16 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended June 2022.
This online travel company is expected to post quarterly loss of $0.15 per share in its upcoming report, which represents a year-over-year change of +53.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
U.S. Xpress Enterprises, Inc. (USX): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended June 2022. Despegar.com's revenues are expected to be $128.66 million, up 104% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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f4404c8e-fa4c-478a-b328-412cb945b6f5
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728618.0
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2022-07-31 00:00:00 UTC
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Is Despegar.com (NYSE:DESP) Using Debt Sensibly?
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DESP
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https://www.nasdaq.com/articles/is-despegar.com-nyse%3Adesp-using-debt-sensibly
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nan
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nan
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Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that Despegar.com, Corp. (NYSE:DESP) does use debt in its business. But is this debt a concern to shareholders?
What Risk Does Debt Bring?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
What Is Despegar.com's Debt?
You can click the graphic below for the historical numbers, but it shows that as of March 2022 Despegar.com had US$22.7m of debt, an increase on US$15.9m, over one year. But it also has US$235.2m in cash to offset that, meaning it has US$212.5m net cash.
NYSE:DESP Debt to Equity History July 31st 2022
How Healthy Is Despegar.com's Balance Sheet?
According to the last reported balance sheet, Despegar.com had liabilities of US$479.9m due within 12 months, and liabilities of US$217.6m due beyond 12 months. Offsetting these obligations, it had cash of US$235.2m as well as receivables valued at US$143.0m due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$319.3m.
This deficit is considerable relative to its market capitalization of US$490.2m, so it does suggest shareholders should keep an eye on Despegar.com's use of debt. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry. While it does have liabilities worth noting, Despegar.com also has more cash than debt, so we're pretty confident it can manage its debt safely. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Despegar.com's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Over 12 months, Despegar.com reported revenue of US$383m, which is a gain of 258%, although it did not report any earnings before interest and tax. That's virtually the hole-in-one of revenue growth!
So How Risky Is Despegar.com?
We have no doubt that loss making companies are, in general, riskier than profitable ones. And the fact is that over the last twelve months Despegar.com lost money at the earnings before interest and tax (EBIT) line. And over the same period it saw negative free cash outflow of US$27m and booked a US$127m accounting loss. Given it only has net cash of US$212.5m, the company may need to raise more capital if it doesn't reach break-even soon. Importantly, Despegar.com's revenue growth is hot to trot. High growth pre-profit companies may well be risky, but they can also offer great rewards. When we look at a riskier company, we like to check how their profits (or losses) are trending over time. Today, we're providing readers this interactive graph showing how Despegar.com's profit, revenue, and operating cashflow have changed over the last few years.
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We can see that Despegar.com, Corp. (NYSE:DESP) does use debt in its business. What Is Despegar.com's Debt? You can click the graphic below for the historical numbers, but it shows that as of March 2022 Despegar.com had US$22.7m of debt, an increase on US$15.9m, over one year.
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According to the last reported balance sheet, Despegar.com had liabilities of US$479.9m due within 12 months, and liabilities of US$217.6m due beyond 12 months. We can see that Despegar.com, Corp. (NYSE:DESP) does use debt in its business. What Is Despegar.com's Debt?
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While it does have liabilities worth noting, Despegar.com also has more cash than debt, so we're pretty confident it can manage its debt safely. We can see that Despegar.com, Corp. (NYSE:DESP) does use debt in its business. What Is Despegar.com's Debt?
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What Is Despegar.com's Debt? We can see that Despegar.com, Corp. (NYSE:DESP) does use debt in its business. You can click the graphic below for the historical numbers, but it shows that as of March 2022 Despegar.com had US$22.7m of debt, an increase on US$15.9m, over one year.
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e89ebcd1-3e34-4790-8257-50f7ddc27d43
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728619.0
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2022-07-09 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 7/9/2022
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DESP
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-7-9-2022
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nan
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nan
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Despegar.com Corp is an Argentina-based online travel company. It provides a broad suite of travel products, including airline tickets, travel packages, hotel bookings and other travel products. It organizes its business into two segments: Air, which consists of the sale of airline tickets, and Packages, Hotels and Other Travel Products, which consists of travel packages, as well as stand-alone sales of hotel rooms, car rentals, bus tickets, cruise tickets, travel insurance and destination services. The Company's one-stop marketplace enables millions of users to find, compare, plan and easily purchase travel services and products through its websites and mobile apps. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand. It operates in Latin America across 20 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of DESPEGAR.COM CORP
Full Guru Analysis for DESP
Full Factor Report for DESP
More details on Validea's Kenneth Fisher strategy
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand.
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Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company.
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Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company.
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Company Description: Despegar.com Corp is an Argentina-based online travel company. Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry.
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93acc44f-d0d6-4970-9aa4-bf3baae01db3
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728620.0
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2022-05-19 00:00:00 UTC
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Despegar.com (DESP) Reports Q1 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/despegar.com-desp-reports-q1-loss-tops-revenue-estimates
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nan
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nan
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Despegar.com (DESP) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -221.43%. A quarter ago, it was expected that this online travel company would post a loss of $0.11 per share when it actually produced a loss of $0.17, delivering a surprise of -54.55%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $112.41 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 8.93%. This compares to year-ago revenues of $51.85 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Despegar.com shares have lost about 9.3% since the beginning of the year versus the S&P 500's decline of -17.7%.
What's Next for Despegar.com?
While Despegar.com has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Despegar.com: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.09 on $106.01 million in revenues for the coming quarter and -$0.27 on $526.57 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, REV Group (REVG), is yet to report results for the quarter ended April 2022. The results are expected to be released on June 7.
This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -30.8%. The consensus EPS estimate for the quarter has been revised 5.6% lower over the last 30 days to the current level.
REV Group's revenues are expected to be $609.71 million, down 5.3% from the year-ago quarter.
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Despegar.com Corp. (DESP): Free Stock Analysis Report
REV Group, Inc. (REVG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com (DESP) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.14. Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $112.41 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 8.93%. Despegar.com shares have lost about 9.3% since the beginning of the year versus the S&P 500's decline of -17.7%.
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Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $112.41 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 8.93%. Despegar.com (DESP) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.14. Despegar.com shares have lost about 9.3% since the beginning of the year versus the S&P 500's decline of -17.7%.
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Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $112.41 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 8.93%. Despegar.com (DESP) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.14. Despegar.com shares have lost about 9.3% since the beginning of the year versus the S&P 500's decline of -17.7%.
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Despegar.com (DESP) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.14. Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $112.41 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 8.93%. Despegar.com shares have lost about 9.3% since the beginning of the year versus the S&P 500's decline of -17.7%.
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f9df012a-02b2-4772-b037-75f6e55445b3
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728621.0
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2022-05-10 00:00:00 UTC
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Yellow Corporation (YELL) Reports Q1 Loss, Misses Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/yellow-corporation-yell-reports-q1-loss-misses-revenue-estimates
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nan
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nan
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Yellow Corporation (YELL) came out with a quarterly loss of $0.54 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $1.26 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -100%. A quarter ago, it was expected that this trucking company would post a loss of $0.15 per share when it actually produced earnings of $0.20, delivering a surprise of 233.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
YRC, which belongs to the Zacks Transportation - Services industry, posted revenues of $1.26 billion for the quarter ended March 2022, missing the Zacks Consensus Estimate by 3.51%. This compares to year-ago revenues of $1.2 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on theearnings call
YRC shares have lost about 69.3% since the beginning of the year versus the S&P 500's decline of -16.3%.
What's Next for YRC?
While YRC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for YRC: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $1.37 billion in revenues for the coming quarter and $0.76 on $5.41 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022.
This online travel company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +70.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter.
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Yellow Corporation (YELL): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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133a4c49-6093-463f-a62f-286540c235e9
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728622.0
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2022-05-05 00:00:00 UTC
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CryoPort, Inc. (CYRX) Reports Q1 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/cryoport-inc.-cyrx-reports-q1-loss-tops-revenue-estimates
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nan
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nan
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CryoPort, Inc. (CYRX) came out with a quarterly loss of $0.31 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -55%. A quarter ago, it was expected that this company would post a loss of $0.15 per share when it actually produced a loss of $1.32, delivering a surprise of -780%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
CryoPort, Inc., which belongs to the Zacks Transportation - Services industry, posted revenues of $52.3 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 0.63%. This compares to year-ago revenues of $53.28 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
CryoPort, Inc. Shares have lost about 56.1% since the beginning of the year versus the S&P 500's decline of -9.8%.
What's Next for CryoPort, Inc.
While CryoPort, Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for CryoPort, Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.14 on $65.27 million in revenues for the coming quarter and -$0.57 on $257.76 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022.
This online travel company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +70.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter.
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CryoPort, Inc. (CYRX): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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0e314d3f-cdc3-4550-845e-2210fee3edde
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728623.0
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2022-05-03 00:00:00 UTC
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Expeditors International (EXPD) Q1 Earnings and Revenues Top Estimates
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DESP
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https://www.nasdaq.com/articles/expeditors-international-expd-q1-earnings-and-revenues-top-estimates
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nan
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nan
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Expeditors International (EXPD) came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.77 per share. This compares to earnings of $1.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 15.82%. A quarter ago, it was expected that this logistics services provider would post earnings of $2.02 per share when it actually produced earnings of $2.66, delivering a surprise of 31.68%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Expeditors International, which belongs to the Zacks Transportation - Services industry, posted revenues of $4.66 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 11.71%. This compares to year-ago revenues of $3.36 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Expeditors International shares have lost about 25.5% since the beginning of the year versus the S&P 500's decline of -12.8%.
What's Next for Expeditors International?
While Expeditors International has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Expeditors International: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.69 on $3.9 billion in revenues for the coming quarter and $7 on $15.68 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022.
This online travel company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +70.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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4d7f5460-94ed-4c58-8d3f-d1b1b4bcf217
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728624.0
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2022-04-28 00:00:00 UTC
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Schneider National (SNDR) Q1 Earnings and Revenues Surpass Estimates
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DESP
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https://www.nasdaq.com/articles/schneider-national-sndr-q1-earnings-and-revenues-surpass-estimates
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nan
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nan
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Schneider National (SNDR) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.62%. A quarter ago, it was expected that this trucking company would post earnings of $0.65 per share when it actually produced earnings of $0.76, delivering a surprise of 16.92%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Schneider National, which belongs to the Zacks Transportation - Services industry, posted revenues of $1.62 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 4.19%. This compares to year-ago revenues of $1.23 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Schneider National shares have lost about 15.1% since the beginning of the year versus the S&P 500's decline of -12.2%.
What's Next for Schneider National?
While Schneider National has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Schneider National: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $1.61 billion in revenues for the coming quarter and $2.49 on $6.49 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022.
This online travel company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of +70.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Schneider National, Inc. (SNDR): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
|
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
|
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
|
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended March 2022. Despegar.com's revenues are expected to be $103.2 million, up 99% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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0d5f9ba8-459b-4be2-88f2-07e2c0f633f0
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728625.0
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2022-04-12 00:00:00 UTC
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Despegar.com approaches pre-pandemic operations levels in Brazil, seeks acquisitions
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DESP
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https://www.nasdaq.com/articles/despegar.com-approaches-pre-pandemic-operations-levels-in-brazil-seeks-acquisitions
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nan
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nan
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SAO PAULO, April 12 (Reuters) - The Brazilian operations of Argentina's travel firm Despegar.com DESP.N, which operates in Brazil as Decolar, are returning to pre-COVID levels, while it plans to make more acquisitions in the country to diversify its revenues, said its Chief Financial Officer Alberto Lopez Gaffney.
"In domestic travel in Brazil we are right now at 90% of the pace of the beginning of 2020 and should reach 100% by the year's end," Gaffney told Reuters.
The Argentina-based group, which says it is Latin America's largest online tourism platform, has been increasing bets on the Brazilian market which accounts for 1/3 of its revenues, as rising airfare prices and an uneven easing of social isolation measures around the world have led tourists to seek destinations closer to home.
The company expects to return to positive cash generation by the end of the year following several quarters of cash burn. In the last quarter of 2021, Despegar managed to stop its cash bleeding, supported by 134% revenue growth year-on-year.
To speed up the recovery, Despegar has made some acquisitions as it keeps betting on services such as ticket selling, travel insurance and car rentals.
In August, Despegar bought online payment solutions company Koin. Last month, it reached a deal for the acquisition of a 51% stake of Stays, a software for booking vacation rentals which has a portfolio of 17,000 properties from Airbnb, Booking, and Expedia.
"And there will certainly be non-organic expansion movements this year," said Gaffney.
The company's revenue diversification helps to offset the more prolonged weakness in segments that should take longer to recover, such as international travel and cruise ships.
"The cruise industry should be the last segment to fully recover, but we expect any negative impacts going forward to be increasingly smaller."
(Reporting by Aluisio Alves; Writing by Peter Frontini; Editing by Chris Reese)
((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
To speed up the recovery, Despegar has made some acquisitions as it keeps betting on services such as ticket selling, travel insurance and car rentals. SAO PAULO, April 12 (Reuters) - The Brazilian operations of Argentina's travel firm Despegar.com DESP.N, which operates in Brazil as Decolar, are returning to pre-COVID levels, while it plans to make more acquisitions in the country to diversify its revenues, said its Chief Financial Officer Alberto Lopez Gaffney. In the last quarter of 2021, Despegar managed to stop its cash bleeding, supported by 134% revenue growth year-on-year.
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SAO PAULO, April 12 (Reuters) - The Brazilian operations of Argentina's travel firm Despegar.com DESP.N, which operates in Brazil as Decolar, are returning to pre-COVID levels, while it plans to make more acquisitions in the country to diversify its revenues, said its Chief Financial Officer Alberto Lopez Gaffney. In the last quarter of 2021, Despegar managed to stop its cash bleeding, supported by 134% revenue growth year-on-year. To speed up the recovery, Despegar has made some acquisitions as it keeps betting on services such as ticket selling, travel insurance and car rentals.
|
SAO PAULO, April 12 (Reuters) - The Brazilian operations of Argentina's travel firm Despegar.com DESP.N, which operates in Brazil as Decolar, are returning to pre-COVID levels, while it plans to make more acquisitions in the country to diversify its revenues, said its Chief Financial Officer Alberto Lopez Gaffney. In the last quarter of 2021, Despegar managed to stop its cash bleeding, supported by 134% revenue growth year-on-year. To speed up the recovery, Despegar has made some acquisitions as it keeps betting on services such as ticket selling, travel insurance and car rentals.
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SAO PAULO, April 12 (Reuters) - The Brazilian operations of Argentina's travel firm Despegar.com DESP.N, which operates in Brazil as Decolar, are returning to pre-COVID levels, while it plans to make more acquisitions in the country to diversify its revenues, said its Chief Financial Officer Alberto Lopez Gaffney. In the last quarter of 2021, Despegar managed to stop its cash bleeding, supported by 134% revenue growth year-on-year. To speed up the recovery, Despegar has made some acquisitions as it keeps betting on services such as ticket selling, travel insurance and car rentals.
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6fe4befa-0969-4d26-8a5e-3309224330cc
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728626.0
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2022-03-10 00:00:00 UTC
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Despegar.com (DESP) Reports Q4 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/despegar.com-desp-reports-q4-loss-tops-revenue-estimates
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nan
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nan
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Despegar.com (DESP) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -54.55%. A quarter ago, it was expected that this online travel company would post a loss of $0.33 per share when it actually produced a loss of $0.30, delivering a surprise of 9.09%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $124.56 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 14.27%. This compares to year-ago revenues of $53.25 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Despegar.com shares have added about 14.6% since the beginning of the year versus the S&P 500's decline of -10.3%.
What's Next for Despegar.com?
While Despegar.com has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Despegar.com: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.14 on $102.69 million in revenues for the coming quarter and -$0.27 on $522.57 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, HyreCar (HYRE), is yet to report results for the quarter ended December 2021.
This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -21.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
HyreCar's revenues are expected to be $10.01 million, up 43% from the year-ago quarter.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Despegar.com Corp. (DESP): Free Stock Analysis Report
HyreCar Inc. (HYRE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com (DESP) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.11. Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $124.56 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 14.27%. Despegar.com shares have added about 14.6% since the beginning of the year versus the S&P 500's decline of -10.3%.
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Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $124.56 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 14.27%. Despegar.com (DESP) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.11. Despegar.com shares have added about 14.6% since the beginning of the year versus the S&P 500's decline of -10.3%.
|
Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $124.56 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 14.27%. Despegar.com (DESP) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.11. Despegar.com shares have added about 14.6% since the beginning of the year versus the S&P 500's decline of -10.3%.
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Despegar.com (DESP) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.11. Despegar.com, which belongs to the Zacks Transportation - Services industry, posted revenues of $124.56 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 14.27%. Despegar.com shares have added about 14.6% since the beginning of the year versus the S&P 500's decline of -10.3%.
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402ce8c1-1d71-4912-ad09-8a98c8643340
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728627.0
|
2022-03-09 00:00:00 UTC
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PowerFleet (PWFL) Reports Q4 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/powerfleet-pwfl-reports-q4-loss-tops-revenue-estimates
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nan
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nan
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PowerFleet (PWFL) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this maker of tracking and communications technology for fleet vehicles would post earnings of $0.05 per share when it actually produced a loss of $0.01, delivering a surprise of -120%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
PowerFleet, which belongs to the Zacks Transportation - Services industry, posted revenues of $34.42 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 9.47%. This compares to year-ago revenues of $29.43 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PowerFleet shares have lost about 37.1% since the beginning of the year versus the S&P 500's decline of -12.5%.
What's Next for PowerFleet?
While PowerFleet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PowerFleet: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $31.92 million in revenues for the coming quarter and $0.10 on $142.58 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended December 2021. The results are expected to be released on March 10.
This online travel company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents a year-over-year change of +54.2%. The consensus EPS estimate for the quarter has been revised 27.3% lower over the last 30 days to the current level.
Despegar.com's revenues are expected to be $109.01 million, up 104.7% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PowerFleet, Inc. (PWFL): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $109.01 million, up 104.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
|
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $109.01 million, up 104.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
|
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $109.01 million, up 104.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
|
Another stock from the same industry, Despegar.com (DESP), has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $109.01 million, up 104.7% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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d361c091-cb44-434d-bc85-34e875df7af0
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728628.0
|
2022-02-09 00:00:00 UTC
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U.S. Xpress (USX) Reports Q4 Loss, Tops Revenue Estimates
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DESP
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https://www.nasdaq.com/articles/u.s.-xpress-usx-reports-q4-loss-tops-revenue-estimates
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nan
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nan
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U.S. Xpress (USX) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of $0.08. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -137.50%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.07, delivering a surprise of -53.33%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
U.S. Xpress, which belongs to the Zacks Transportation - Services industry, posted revenues of $531.61 million for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $455.59 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
U.S. Xpress shares have lost about 27.1% since the beginning of the year versus the S&P 500's decline of -5.1%.
What's Next for U.S. Xpress?
While U.S. Xpress has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for U.S. Xpress: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $521.22 million in revenues for the coming quarter and $0.71 on $2.08 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended December 2021.
This online travel company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +62.5%. The consensus EPS estimate for the quarter has been revised 57.1% lower over the last 30 days to the current level.
Despegar.com's revenues are expected to be $111.4 million, up 109.2% from the year-ago quarter.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
U.S. Xpress Enterprises, Inc. (USX): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $111.4 million, up 109.2% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $111.4 million, up 109.2% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $111.4 million, up 109.2% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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Despegar.com (DESP), another stock in the same industry, has yet to report results for the quarter ended December 2021. Despegar.com's revenues are expected to be $111.4 million, up 109.2% from the year-ago quarter. Despegar.com Corp. (DESP): Free Stock Analysis Report
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36bbe64a-4db6-4298-8fef-b4b347a65f08
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728629.0
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2022-02-09 00:00:00 UTC
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Despegar.com (NYSE:DESP) shareholders have endured a 29% loss from investing in the stock three years ago
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DESP
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https://www.nasdaq.com/articles/despegar.com-nyse%3Adesp-shareholders-have-endured-a-29-loss-from-investing-in-the-stock
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nan
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nan
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Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 26% in the last month. But that cannot eclipse the less-than-impressive returns over the last three years. Truth be told the share price declined 29% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
Because Despegar.com made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years, Despegar.com's revenue dropped 41% per year. That's definitely a weaker result than most pre-profit companies report. On the face of it we'd posit the share price fall of 9% compound, over three years is well justified by the fundamental deterioration. The key question now is whether the company has the capacity to fund itself to profitability, without more cash. The company will need to return to revenue growth as quickly as possible, if it wants to see some enthusiasm from investors.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
NYSE:DESP Earnings and Revenue Growth February 9th 2022
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Over the last year Despegar.com shareholders have received a TSR of 1.1%. While you don't go broke making a profit, this return was actually lower than the average market return of about 5.3%. On the bright side, that's certainly better than the yearly loss of about 9% endured over the last three years, implying that the company is doing better recently. We hope the turnaround in fortunes continues. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Despegar.com you should know about.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:DESP Earnings and Revenue Growth February 9th 2022 You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 26% in the last month. Because Despegar.com made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now.
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NYSE:DESP Earnings and Revenue Growth February 9th 2022 You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 26% in the last month. Because Despegar.com made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now.
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Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 26% in the last month. Because Despegar.com made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Over the last three years, Despegar.com's revenue dropped 41% per year.
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Because Despegar.com made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Despegar.com, Corp. (NYSE:DESP) shareholders should be happy to see the share price up 26% in the last month. Over the last three years, Despegar.com's revenue dropped 41% per year.
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4336b3b1-8519-4447-8962-a759718045e3
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728630.0
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2022-02-07 00:00:00 UTC
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Why Despegar Stock Flew 21% Higher in January
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DESP
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https://www.nasdaq.com/articles/why-despegar-stock-flew-21-higher-in-january
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nan
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nan
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What happened
Shares of Despegar (NYSE: DESP) took flight in January, soaring 21.1% in the month, according to data by S&P Global Market Intelligence, as several analysts either reiterated their generally bullish sentiment on the stock or upgraded their outlook for the Latin American online travel site.
Despegar stock fell 24% in 2021 and had lost nearly three-quarters of its value from the highs reached last March. But as the region's biggest booking agent, it had apparently become too discounted to ignore anymore.
Image source: Getty Images.
So what
The omicron variant of COVID-19 sapped some of the strength in travel and tourism in Latin America, much as it did in the rest of the world, but Citi analyst Sergio Matsumoto thinks the market doesn't appreciate Despegar's earnings power, which he believes the site should be able to flex after the first quarter.
Similarly, Cowen analyst Kevin Kopelman told investors in a research note that although bookings slowed in November due to coronavirus outbreaks and weakened currencies, he was keeping his outperform rating on the stock. He lowered his price target, however, to $11 per share from $13.
Now what
Despegar remains focused on improving travel options and has used the pandemic's crushing of the industry to make strategic acquisitions, such as its purchase of Best Day, a Mexican travel company, for a discounted $56 million, much lower than its original offer of $136 million.
Despegar itself could be open to an acquisition. Expedia owns a 14% stake in the travel agent and may find its own discounted value is an opportunity to buy out the rest.
In the interim, though, Despegar continues to branch out its offerings, having acquired an 84% stake in the fintech payments platform Koin, which allows travelers to pay for their trips in installments.
It's likely travel and tourism will remain volatile in Latin America. The region is not known for its political, economic, or monetary stability, but as home to some of the biggest emerging economies, it represents a huge growth opportunity anyway.
10 stocks we like better than Despegar.com, Corp.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Despegar (NYSE: DESP) took flight in January, soaring 21.1% in the month, according to data by S&P Global Market Intelligence, as several analysts either reiterated their generally bullish sentiment on the stock or upgraded their outlook for the Latin American online travel site. So what The omicron variant of COVID-19 sapped some of the strength in travel and tourism in Latin America, much as it did in the rest of the world, but Citi analyst Sergio Matsumoto thinks the market doesn't appreciate Despegar's earnings power, which he believes the site should be able to flex after the first quarter. Despegar stock fell 24% in 2021 and had lost nearly three-quarters of its value from the highs reached last March.
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Now what Despegar remains focused on improving travel options and has used the pandemic's crushing of the industry to make strategic acquisitions, such as its purchase of Best Day, a Mexican travel company, for a discounted $56 million, much lower than its original offer of $136 million. What happened Shares of Despegar (NYSE: DESP) took flight in January, soaring 21.1% in the month, according to data by S&P Global Market Intelligence, as several analysts either reiterated their generally bullish sentiment on the stock or upgraded their outlook for the Latin American online travel site. Despegar stock fell 24% in 2021 and had lost nearly three-quarters of its value from the highs reached last March.
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What happened Shares of Despegar (NYSE: DESP) took flight in January, soaring 21.1% in the month, according to data by S&P Global Market Intelligence, as several analysts either reiterated their generally bullish sentiment on the stock or upgraded their outlook for the Latin American online travel site. Now what Despegar remains focused on improving travel options and has used the pandemic's crushing of the industry to make strategic acquisitions, such as its purchase of Best Day, a Mexican travel company, for a discounted $56 million, much lower than its original offer of $136 million. Despegar stock fell 24% in 2021 and had lost nearly three-quarters of its value from the highs reached last March.
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What happened Shares of Despegar (NYSE: DESP) took flight in January, soaring 21.1% in the month, according to data by S&P Global Market Intelligence, as several analysts either reiterated their generally bullish sentiment on the stock or upgraded their outlook for the Latin American online travel site. Despegar stock fell 24% in 2021 and had lost nearly three-quarters of its value from the highs reached last March. So what The omicron variant of COVID-19 sapped some of the strength in travel and tourism in Latin America, much as it did in the rest of the world, but Citi analyst Sergio Matsumoto thinks the market doesn't appreciate Despegar's earnings power, which he believes the site should be able to flex after the first quarter.
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2022-01-31 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-10
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The market's moving, and that's just fine for this weekly column that singles out three stocks that I expect to lose to the market in the week ahead. My three stocks to avoid last week were on the move -- as AT&T, MicroStrategy, and VF, were down 5%, 10%, and 7%, respectively -- averaging out to a 7.3% decline.
The S&P 500 bounced back to rise 0.8% for the week, so I won last week. My bearish picks have now lost to the market in 14 of the past 15 weeks. This week, I see Royal Caribbean (NYSE: RCL), Spotify (NYSE: SPOT), and Despegar.com (NYSE: DESP), as stocks that you may want to consider steering clear from. Let's go over my reasons for the near-term pessimism.
Image source: Getty Images.
Royal Caribbean
With all of the setbacks facing the cruising industry these days, it may be surprising to see Royal Caribbean checking in somewhat in ship-shape. The stock is trading higher than where it was two months ago, even as many growth stocks got rocked in that time and the omicron variant has gotten in the way of some scheduled sailings.
Royal Caribbean is the best of the publicly traded cruise line operators. The brand has a loyal following, and it has historically posted the healthiest margins in the industry. However, it seems as if there's a full recovery being priced into the shares when there are a lot of unknowns.
We'll get a good taste of how Royal Caribbean is holding up with recent onboard outbreaks in the industry when it reports financial results on Friday morning. It won't be pretty. Royal Caribbean is expected to post its eighth consecutive massive loss. Making matters worse, it has posted a larger-than-expected deficit in back-to-back reports heading into Friday's conversation with the investing community. With the recent surge in COVID-19 cases likely causing more people to reconsider sailings in the near term, it could be a problematic report.
Spotify
Speaking of problematic reports, Spotify announces its fourth-quarter results after Wednesday's market close. The fresh financials themselves won't be all that impressive. Analysts see another quarterly loss on a modest 16% increase in revenue. However, the real reason Spotify will have to face the music on Wednesday is that its programming is causing some unrest.
The situation started innocently enough late last week. Neil Young threatened to pull his music as a result of what critics call vaccine misinformation coming from The Joe Rogan Experience podcast on Spotify. The service stood by Rogan's right to express his opinions, and Young's music was pulled. Joni Mitchell and Nils Lofgren have also requested to have their catalogs pulled from the platform in support of Young's battle against Rogan's vaccination rhetoric.
Spotify is between a rock artist and a hard place. It paid Rogan $100 million two years ago to be the anchor of its podcast movement, but now it's losing musical artists. Consumers lose when artists with deep catalogs bow out of the platform, but Spotify would also alienate Rogan's core fans -- and others who agree with his views -- if he got the hook. It's a lose-lose situation for Spotify, and it's probably going to lose subscribers no matter how this plays out.
Despegar.com
One of last week's biggest winners was Despegar.com. The Latin American travel portal saw its stock soar more than 20% higher last week, fueled by an analyst upgrade. Citi analyst Sergio Matsumoto stuck to his earlier price target of $15, but with the share price buckling below $10 earlier in the week it was time to bump that hold rating up to a buy.
The analyst feels that the omicron's impact on the travel industry within Latin American will be limited to the first quarter, and that the portal's long-terms earnings power actually improved from where it was before the pandemic arrived. It's high praise, but the stock could be ripe for some profit-taking after a big move higher last week.
If you're looking for safe stocks, you aren't likely to find them in Royal Caribbean, Spotify, and Despegar.com this week.
10 stocks we like better than Royal Caribbean
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Royal Caribbean wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Rick Munarriz owns AT&T. The Motley Fool owns and recommends Despegar.com and Spotify Technology. The Motley Fool recommends MicroStrategy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week, I see Royal Caribbean (NYSE: RCL), Spotify (NYSE: SPOT), and Despegar.com (NYSE: DESP), as stocks that you may want to consider steering clear from. Despegar.com One of last week's biggest winners was Despegar.com. If you're looking for safe stocks, you aren't likely to find them in Royal Caribbean, Spotify, and Despegar.com this week.
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This week, I see Royal Caribbean (NYSE: RCL), Spotify (NYSE: SPOT), and Despegar.com (NYSE: DESP), as stocks that you may want to consider steering clear from. Despegar.com One of last week's biggest winners was Despegar.com. If you're looking for safe stocks, you aren't likely to find them in Royal Caribbean, Spotify, and Despegar.com this week.
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This week, I see Royal Caribbean (NYSE: RCL), Spotify (NYSE: SPOT), and Despegar.com (NYSE: DESP), as stocks that you may want to consider steering clear from. If you're looking for safe stocks, you aren't likely to find them in Royal Caribbean, Spotify, and Despegar.com this week. Despegar.com One of last week's biggest winners was Despegar.com.
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If you're looking for safe stocks, you aren't likely to find them in Royal Caribbean, Spotify, and Despegar.com this week. This week, I see Royal Caribbean (NYSE: RCL), Spotify (NYSE: SPOT), and Despegar.com (NYSE: DESP), as stocks that you may want to consider steering clear from. Despegar.com One of last week's biggest winners was Despegar.com.
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2022-01-20 00:00:00 UTC
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Got $3,000? Here Are 2 Stocks to Buy and Hold for the Long Term
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DESP
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https://www.nasdaq.com/articles/got-%243000-here-are-2-stocks-to-buy-and-hold-for-the-long-term
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Amazon already had a large-cap valuation a decade ago, but the company still managed to deliver stock gains of roughly 1,710% over the last 10-year period. That performance would have turned a $3,000 investment in the company made in early 2012 into more than $54,000.
Taking a buy-and-hold approach to strong companies is a path to huge investment wins, and it eliminates many of the risks and stresses associated with trying to perfectly time the market. With that in mind, read on for a look at two promising stocks primed to deliver strong portfolio performance for patient investors.
Image source: Getty Images.
1. Airbnb
Airbnb's (NASDAQ: ABNB) approach to short-term rental bookings has already reshaped the travel and hospitality industries, and the company's growth story is just getting started. Recent turbulence for growth stocks and continued pressures stemming from the omicron coronavirus variant have meant that the stock has lost ground recently, but investors shouldn't fret. Despite shares pulling back from the significant pop they enjoyed after the company's very strong third-quarter results, sell-offs have created an opportunity for long-term investors to build positions in a great company.
Recent bouts of airline flight cancellations highlight that there are some external risk factors that could continue to impact the company's business. But Airbnb's long-term outlook remains very promising, and risk-tolerant investors can benefit by pouncing on the stock. While it's reasonable to expect that there may be some additional twists and turns in the future, the travel industry looks poised for a strong rebound, and Airbnb is ready to help lead the recovery.
Across Airbnb's third quarter in 2021, the delta variant was still at the forefront of pandemic-related concerns. Yet even with the associated challenges, the company managed to increase sales 36% from its pre-pandemic third quarter in 2019. Net income in last year's third quarter also surged to $834 million, up 280% year over year and 213% compared to Q3 in 2019.
The market has been weighing near-term uncertainty and taking a more cautious approach to Airbnb stock, but now looks like a worthwhile time to build a position in this category-leading company.
2. Despegar.com
With the omicron variant adding a new dash of uncertainty to the market equation, travel stocks have seen volatile swings over the last couple of years. Political and economic concerns in the Latin American market have added additional risk factors for companies concentrated in the region, and Despegar.com (NYSE: DESP) has been hit hard by these conditions. The company's share price is now down roughly 45% from its 52-week high.
While pandemic-related challenges are certainly a contributing factor, the travel specialist's poor stock performance in recent months may have more to do with the unfavorable macroeconomic backdrop in Latin America than specific issues related to the business. Bouts of political instability, rising inflation, and other unfavorable economic factors have put a hurting on many leading companies with a focus on the Latin American market. So it's not surprising that Despegar has been caught up in the sell-off despite encouraging business performance.
Despegar's gross bookings rose 298% year over year in the third quarter and 34% on a sequential basis. While bookings in Q3 were still down roughly 44% from Q3 in 2019, there are signs that a travel industry recovery is underway. Mexico, in particular, appears to be seeing a strong travel rebound, and ongoing restrictions in Europe and other popular travel destinations could cause people in the U.S. to look toward Latin America if they plan on making international trips in 2022.
Despite the potential for its business and stock performance to be uneven in the near term, Despegar looks like a top way to benefit from the Latin American travel industry's recovery, and its stock trades at attractive levels. With the company valued at roughly $682 million and trading at just 1.3 times this year's expected sales, Despegar could deliver explosive returns for investors as travel restrictions ease and macroeconomic conditions improve over the long term.
Find out why Airbnb, Inc. is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Airbnb, Inc. is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of January 10, 2022
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Noonan owns Airbnb, Inc. The Motley Fool owns and recommends Airbnb, Inc., Amazon, and Despegar.com, Corp. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Political and economic concerns in the Latin American market have added additional risk factors for companies concentrated in the region, and Despegar.com (NYSE: DESP) has been hit hard by these conditions. With the company valued at roughly $682 million and trading at just 1.3 times this year's expected sales, Despegar could deliver explosive returns for investors as travel restrictions ease and macroeconomic conditions improve over the long term. Despite shares pulling back from the significant pop they enjoyed after the company's very strong third-quarter results, sell-offs have created an opportunity for long-term investors to build positions in a great company.
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Political and economic concerns in the Latin American market have added additional risk factors for companies concentrated in the region, and Despegar.com (NYSE: DESP) has been hit hard by these conditions. Despite the potential for its business and stock performance to be uneven in the near term, Despegar looks like a top way to benefit from the Latin American travel industry's recovery, and its stock trades at attractive levels. With the company valued at roughly $682 million and trading at just 1.3 times this year's expected sales, Despegar could deliver explosive returns for investors as travel restrictions ease and macroeconomic conditions improve over the long term.
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Despite the potential for its business and stock performance to be uneven in the near term, Despegar looks like a top way to benefit from the Latin American travel industry's recovery, and its stock trades at attractive levels. With the company valued at roughly $682 million and trading at just 1.3 times this year's expected sales, Despegar could deliver explosive returns for investors as travel restrictions ease and macroeconomic conditions improve over the long term. Despite shares pulling back from the significant pop they enjoyed after the company's very strong third-quarter results, sell-offs have created an opportunity for long-term investors to build positions in a great company.
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Despite the potential for its business and stock performance to be uneven in the near term, Despegar looks like a top way to benefit from the Latin American travel industry's recovery, and its stock trades at attractive levels. The Motley Fool owns and recommends Airbnb, Inc., Amazon, and Despegar.com, Corp. Despite shares pulling back from the significant pop they enjoyed after the company's very strong third-quarter results, sell-offs have created an opportunity for long-term investors to build positions in a great company.
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728633.0
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2022-01-16 00:00:00 UTC
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3 Growth Stocks That Are Screaming Buys Right Now
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DESP
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https://www.nasdaq.com/articles/3-growth-stocks-that-are-screaming-buys-right-now
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The market has fallen out of love with growth stocks recently. Between high inflation, the omicron coronavirus variant, the Federal Reserve's plans to raise interest rates and cut back on other economic stimulus initiatives, and underwhelming economic data, investors have had a litany of risk factors to consider. Lately, it seems like a new one pops up almost every other day.
Here's the good news: With the market getting skittish about growth stocks as a broad category, there are promising companies caught up in the pullback that now trade at huge discounts. Read on to see why a panel of Motley Fool contributors identified Despegar.com (NYSE: DESP), StoneCo (NASDAQ: STNE), and Chegg (NYSE: CHGG) as stocks with massive long-term upside.
Image source: Getty Images.
Don't miss out on this potentially explosive stock
Keith Noonan (Despegar.com): The last year has been a challenging one for many Latin American companies. Relatively high levels of inflation and instances of political and economic instability have made investors more cautious about stocks with substantial exposure to the region. In addition to these factors, travel booking specialist Despegar has been dealing with lingering challenges related to the coronavirus pandemic, and its valuation has taken a dramatic hit.
Despegar stock is down roughly 26% over the last year and roughly 46% from its 52-week high. The company now has a market capitalization of about $671.5 million and is valued at 1.3 times this year's expected sales. The upside is that the stock looks quite cheap at current prices, and there are signs of a powerful turnaround underway.
While the company's third-quarter bookings were still down 44% from the comparable pre-pandemic quarter in 2019, bookings were up 298% year over year and 34% on a sequential basis. Recent headwinds have been at the forefront of the market's focus, but key Latin American territories will likely benefit from an expanding middle class over the next decade and beyond, and the region's travel and hospitality industries are bouncing back and poised for big growth over the long term.
Despegar's strong market position and low valuation also makes it a potential acquisition target. Expedia already owns a 14% stake in the business, and it wouldn't be surprising to see the company or another player in the online travel agency space swoop in to buy out the company at a substantial premium. Despegar stock offers investors multiple paths to huge returns, and it stands out as a great buy after recent sell-offs.
Messed-up expectations create a rare opportunity
Jason Hall (StoneCo): It's been a brutal year for many fintech stocks, none more so than Brazilian payments and financial services company StoneCo. As of this writing, shares are down more than 80% from their all-time high, reached in early 2021, on a combination of high inflation stalling Brazil's economy, and that putting pressure on StoneCo's credit business.
But more broadly speaking, it looks like the sell-off in StoneCo's stock was exacerbated by the larger tech/growth stock decline over the past 11 months. StoneCo's focus on Brazil, with its struggling economy, has lost far more of its value than other fintech companies such as Block and Sea Limited, which offer similar (sometimes competing) services, but don't have concentrated exposure to a struggling economy like Brazil's.
SE Total Return Level data by YCharts
Yes, Brazil is a bit of an economic mess right now, but tying StoneCo's path forward exclusively to Brazil getting back on track economically misses the bigger opportunity. Brazil has higher rates of internet access than many other countries in Latin America, and the number of people with bank accounts is increasing.
But there is still a massive opportunity to help merchants with digital transformation. This includes tools for omnichannel management, payments, accounting, point-of-sale systems, and many others. And despite what the stock performance might have you think, StoneCo is still growing at a fast pace. Total product volume continues to grow, revenue in its native currency was up 57%, and the number of active payments clients more than doubled.
As a result, StoneCo stock is cheaper than it's ever been on a price-to-sales basis, trading for 7.2 times. That's a bargain price for this misunderstood company.
An education technology company with a strong moat
Parkev Tatevosian (Chegg): Education technology company Chegg is an excellent growth stock that's a screaming buy right now. Chegg helps students in college get through courses with less stress and more confidence.
Its website is home to over 70 million pieces of proprietary content that students can use to study for exams or complete an assignment. The step-by-step explanations of challenging concepts were created at students' request.
Subscribers to Chegg have the option to ask 20 questions per month that subject-matter experts answer. The question and explanation become available for all Chegg subscribers to learn from. It has taken years for Chegg to build out this database, making it time-consuming and expensive for any competitor considering encroaching in its space.
Indeed, Chegg has spent the better part of this last decade generating operating losses while building out the treasure trove of content assets. However, the company turned the corner in 2019 and earned $18 million in operating income, which rose to $57 million in 2020.
At 4.4 million subscribers, Chegg is also growing free cash flow. In the nine months ended Sept. 30, 2021, Chegg's free cash flow was $138 million, up from $68 million in the same time last year.
Moreover, investors can buy this growth stock at a bargain price. Chegg is trading at a price-to-free-cash-flow ratio of 25, near its lowest ever. Its price-to-sales ratio of 5.4 is the lowest since 2018. Meanwhile, Chegg has built out its content database, deepening its competitive advantage and reaching sufficient scale to generate healthy operating profits and free cash flow. For all those reasons, Chegg stock is a screaming buy right now.
10 stocks we like better than Despegar.com, Corp.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of January 10, 2022
Jason Hall owns Block, Inc., Sea Limited, and Stoneco LTD. Keith Noonan owns Stoneco LTD. Parkev Tatevosian owns Chegg. The Motley Fool owns and recommends Block, Inc., Despegar.com, Corp., Sea Limited, and Stoneco LTD. The Motley Fool recommends Chegg. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Read on to see why a panel of Motley Fool contributors identified Despegar.com (NYSE: DESP), StoneCo (NASDAQ: STNE), and Chegg (NYSE: CHGG) as stocks with massive long-term upside. Don't miss out on this potentially explosive stock Keith Noonan (Despegar.com): The last year has been a challenging one for many Latin American companies. In addition to these factors, travel booking specialist Despegar has been dealing with lingering challenges related to the coronavirus pandemic, and its valuation has taken a dramatic hit.
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The Motley Fool owns and recommends Block, Inc., Despegar.com, Corp., Sea Limited, and Stoneco LTD. Read on to see why a panel of Motley Fool contributors identified Despegar.com (NYSE: DESP), StoneCo (NASDAQ: STNE), and Chegg (NYSE: CHGG) as stocks with massive long-term upside. Don't miss out on this potentially explosive stock Keith Noonan (Despegar.com): The last year has been a challenging one for many Latin American companies.
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Read on to see why a panel of Motley Fool contributors identified Despegar.com (NYSE: DESP), StoneCo (NASDAQ: STNE), and Chegg (NYSE: CHGG) as stocks with massive long-term upside. Don't miss out on this potentially explosive stock Keith Noonan (Despegar.com): The last year has been a challenging one for many Latin American companies. In addition to these factors, travel booking specialist Despegar has been dealing with lingering challenges related to the coronavirus pandemic, and its valuation has taken a dramatic hit.
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Read on to see why a panel of Motley Fool contributors identified Despegar.com (NYSE: DESP), StoneCo (NASDAQ: STNE), and Chegg (NYSE: CHGG) as stocks with massive long-term upside. Don't miss out on this potentially explosive stock Keith Noonan (Despegar.com): The last year has been a challenging one for many Latin American companies. In addition to these factors, travel booking specialist Despegar has been dealing with lingering challenges related to the coronavirus pandemic, and its valuation has taken a dramatic hit.
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2021-11-17 00:00:00 UTC
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Despegarcom, Corp (DESP) Q3 2021 Earnings Call Transcript
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DESP
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https://www.nasdaq.com/articles/despegarcom-corp-desp-q3-2021-earnings-call-transcript
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nan
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Image source: The Motley Fool.
Despegarcom, Corp (NYSE: DESP)
Q3 2021 Earnings Call
Nov 17, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and welcome to the Despegar Third Quarter '21 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available in the Investors section of the Company's website, investor.despegar.com. [Operator Instructions]
Now I would like to turn the call over to Ms. Natalia Nirenberg, Investor Relations. Please go ahead.
10 stocks we like better than Despegar.com, Corp.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 10, 2021
Natalia Nirenberg -- Investor Relations
Good morning, everyone, and thanks for joining us today for a discussion of our third quarter 2021 results.
In addition to reporting financial results in accordance with US Generally Accepted Accounting Principles, we discuss certain non-GAAP financial measures and operating metrics, including foreign exchange neutral calculations. Investors should read the definitions of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation, as substitute for or superior to GAAP financial measures and are provided as supplemental information only.
Before we begin our prepared remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the Company's control. These include, but are not limited to, expectations and assumptions related to the impact of the COVID-19 pandemic and the integration and performance of the businesses we acquired, including Best Day and Koin. For a description of these risks, please refer to our filings with the Securities and Exchange Commission and our press release.
Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the third quarter and update you on our strategic priorities. Alberto Lopez Gaffney, our CFO, will then discuss the quarter's financial results. After that, we'll open the call to your questions.
Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia, and good morning, everyone. Thank you for joining us and for your interest in Despegar.
Our third quarter results demonstrate that the strategic initiative undertaken since the start of the pandemic and their successful execution at delivering improved margins when compared to 2019. Our performance this quarter underscores the future earnings power of the Company. I'd like to touch on some highlights.
We saw strong recovery across most of our markets, mainly driven by increased demand for domestic travel. International tourism is just starting to pick up as many countries resume opening their borders to fully vaccinated tourists. Thus our international transactions increased 120% sequentially coming from very low level. As a result, we reported sequential increases of 34% in gross bookings and 44% in transactions. This was driven by, first of all, capturing the pick-up in Brazil, Argentina and Chile, countries that were impacted in the prior quarter with the second wave of the virus.
Second, another strong quarter in Colombia, where we observed significant pent-up demand. Mexico was the standout in the prior quarter and had a weaker performance in July and August and some of Best Day stores could not open due to the restrictions that impacted some futuristic destinations. On a positive tone, our Mexican operations began the recovery in September. This has continued into October. Our geographic diversification has allowed us to capture growth and reservation as market recovers.
We continue to closely monitor the key levers of the Company: value price, marketing expenses and installments. After improvement in our management revenue [Indecipherable] we have been able to report stronger take rates than pre-pandemic, reaching 12.7% as reported and 13.7%, excluding extraordinary cancellations. Similar to past quarters, our take rate benefited from the investments we have made in technology and analytics, which allowed us to price more accurately, improving algorithms to capture more profitable transactions and the positive impact from Best Day, which has a higher take rate were also key contributors. At the same time, on a quarter-on-quarter basis, revenue growth was more than double the increase in cost of revenues.
Lastly, operating expenses increased only 3% sequentially even as the investments in selling and marketing during the quarter were 36% up sequentially and in line with the increase in gross bookings.
Our business leverages the actions taken last year to improve profitability. This has allowed us to be very close to achieving adjusted EBITDA breakeven when excluding extraordinary charges, even with gross bookings at only 56% on the third quarter of 2019 level. Importantly, for the month of September, we achieved positive adjusted EBITDA, excluding extraordinary charges. This was an important milestone for us. We remain well capitalized with a healthy cash position of $276 million.
Turning to slide four for a discussion on a few of our key markets. As various geographies have reopened post-pandemic, consumers have shifted some spend toward travel and entertainment. Along these lines, Brazil and Colombia posted the highest level of gross bookings since the start of the pandemic. With most states lifting restrictions in July, gross bookings in the quarter were up 126% sequentially, and ASPs up 33% in the same period. By mid-September, several countries lifted restrictions allowing fully vaccinated Brazilians to travel overseas. Furthermore, as of November the 8th, fully vaccinated Brazilians are now allowed to travel to the US, showing proof of full vaccination. In Mexico, although borders remained open for flights, activities in main cities were particularly restricted to control an increase in COVID cases. These restrictions affected Best Day offline stores performance in July and August.
On a positive note, gross bookings have been increasing month-over-month since August and international travel was stable on a sequential basis. Regarding the rest of LATAM, noteworthy Colombia was 22% above the third quarter of 2019, pre-pandemic levels, reflecting pent-up demand as travel restrictions were lifted earlier in the year. In Argentina, we observed a sequential 150% increase in gross bookings.
Finally, in Chile, gross bookings nearly doubled sequentially, and the significant growth trend continued into October. As we entered the fourth quarter, October continued with its positive trends across the region. To summarize, our geographic diversification has been key in providing a more consistent overall performance for the Company.
Turning to slide five. We have two really strong initiatives that we continue to deliver on and that I will discuss today. First, our loyalty program has been widely accepted and we have reached the 1 million member milestone. Today [Indecipherable] available in Brazil, Argentina and Mexico. In this regard, we recently signed an agreement to launch a co-branded credit card in Mexico in partnership with Invex and Mastercard. Also capitalizing on the increased travel demand, we launched our first offline marketing campaign since 2020, it's Time to Travel Again, and can be seen across all medias in Latin America.
In Brazil, we have been offering more financing options to customers. With Koin, we have further deepened penetration in Decolar, accounting for 6.5% of all transactions in the third week of October, with a record total purchase volume. Additionally, 5.5% of Decolar's transactions in October were paid through PIX, which results in much lower cost of revenue for Decolar, given that these transactions are processed internally. We also completed implementation of risk-based pricing in the travel vertical, which allows us to match the interest rate charge to the risk profile of different customers.
On Koin's B2B business, we continue expanding the number of merchants in the e-commerce sector, which will now provide alternative means for customers to pay via Boleto Parcelado, a buy now, pay later payment solution. We now have 30 merchants signed up. We also added four new merchants in payments and fraud, bringing the total number of merchants to 10 year-to-date. Notably, Koin's total purchase value for the quarter tripled sequentially. As we look ahead, we expect to be adding more industries to our two verticals in the very near future. We see a very attractive potential for Koin service's buy now pay later and fraud prevention, which have a total addressable market of between $15 billion and $20 billion in Latin America.
I will now turn the call over to Alberto to discuss this quarter's financial results.
Alberto Lopez Gaffney -- Chief Financial Officer
Thank you, Damian, and thank you all for joining us today.
Turning to page six. As reported revenues increased 32% sequentially to 37% below third quarter '19 pre-pandemic levels compared with 39% below second quarter '19 levels in the prior quarter. Excluding extraordinary cancellations in connection with the COVID-19 pandemic, revenues would have been 32% below third quarter '19 levels. Note that this quarter, we also saw lower cancellations. The ratio of cancellation to gross bookings decreased 33 basis points quarter-on-quarter. Importantly, our take rate remains strong, reaching 12.7% as reported and 13.7% when excluding extraordinary cancellations. Key factors in this development were a contribution from Best Day and improvements in revenue management implemented since last year, which have allowed us to further optimize pricing through more advanced algorithms.
Now please turn to slide seven. Moving on to profitability. We achieved the best quarterly adjusted EBITDA since the start of the COVID-19 pandemic in second quarter 2020. Despite posting gross bookings 44% below third quarter '19, we were very close to breakeven when excluding extraordinary charges. This is proof of the initiatives launched during this period, particularly in terms of cost reduction.
Excluding extraordinary charges, comparable adjusted EBITDA neared breakeven, reaching a loss of $3.6 million, improving from losses of $10.5 million in the prior quarter and nearly $17 million in third quarter 2020. This compares with our comparable adjusted EBITDA gain of over $9 million in third quarter '19. Note that one-time charges were nearly $7 million in the quarter, mainly in connection with extraordinary cancellations resulting from the surge in COVID-19 cases compared to non-recurring charges of $12 million in second quarter 2021.
We are confident that Despegar will be coming out of the pandemic as a more profitable company, better diversified, both from a geographic and product mix perspective, backed by a more sustainable business model.
Now please turn to slide eight. We closed the quarter with a solid cash position of $276 million. As travel conditions improved, use of cash during the quarter increased to nearly $40 million. Recall that in the second quarter, we have granted a higher number of vouchers to customers whose travel plans were impacted by a spike in COVID cases, mainly in Brazil. While this resulted in a lower use of cash of close to $10 million in second quarter '21, with better travel conditions in this past quarter, we saw a pickup in demand with customers redeeming travel vouchers. The redemption of these vouchers added $15 million to the cash burn that we have reported recently of $25 million. In turn, our net payable position decreased nearly $20 million in the quarter.
Now please turn to slide nine for the key takeaways of the quarter. First, we delivered a strong sequential recovery, driven by better performance across our key markets, except for Mexico this quarter. Brazil led the recovery with gross bookings up 126% sequentially, but still 60% below '19 levels. Colombia also showed a strong pent-up with gross bookings exceeding third quarter '19 levels by 32%. Second, EBITDA, excluding cancelations, is near breakeven, even with gross bookings still 44% below '19 levels as the initiatives implemented since the start of the pandemic have significantly strengthened the earnings power of the Company. This positive trend in profitability continued into September with adjusted EBITDA reaching breakeven levels when excluding extraordinary cancellations.
Fourth, we continue to deepen customer engagement with our loyalty program, reaching the 1 million member milestone in Argentina, Brazil and Mexico combined. As demand has picked up, we also launched our first offline marketing campaign since second quarter last year.
Finally, on the ESG front, we launched our materiality survey last month and look forward to sharing the results in our next ESG report.
Now please turn to slide 10 for final remarks. Despite ongoing volatility and some macro murkiness, our long-term vision is, if anything, in sharper focus. The initiatives required to realize it are fully underway even as we work through near-term market challenges and consumer behavior continues to adjust.
Looking at the fourth quarter, the strong recovery observed in gross bookings in September continued into October, reaching 72% of '19 booking levels. In addition, we expect November and December to continue with these positive trends, benefiting from industry marketing events such as the Buen Fin campaign in Mexico and Black Friday in Brazil. December also marks the start of the summer season in LATAM, which would also contribute to higher demand in the region. In this context, we are stepping up our marketing efforts while keeping a heightened focus on affordability. To illustrate the point, on a weekly basis, we are launching a minimum of four unbeatable deals by country while carefully balancing the price/financing perception.
With respect to Best Day, we are on track with integration of the in-destination activities segment and expect to fully finalize the integration of this acquisition as planned by first quarter next year. We are also making steady headwind in expanding Koin's acquisitions operations. In addition to adding new logos in the B2B business segment in Brazil, we are taking the first steps to launch Koin in Mexico early next year.
Finally, we are in conversations with several suppliers across the region to expand our vacation rental inventory to meet current higher demand in this product segment.
In summary, our continued focus on execution and our improved performance to date, together with the positive progression in demand, are quite encouraging. We believe that while forecasting future performance still presents some challenges due to the ups and downs of the pandemic, we expect that the developments in vaccination front will generate the confidence to go back to longer travel patterns.
The third quarter and year-to-date results reinforce our confidence in our strategy and represent focus and discipline in executing our long-term strategic plan.
This concludes our prepared remarks. We are ready to answer your questions. Operator, please open the line for questions.
Questions and Answers:
Operator
[Operator Instructions] And today's first question comes from Ed Yruma with KeyBanc. Please go ahead.
Edward Yruma -- KeyBanc -- Analyst
Hey, good morning. Thanks for taking the question. And nice to see the sequential improvement. I guess a couple of things for me. First, I think you guys have done a really good job of right-sizing the business during the pandemic and making yourselves more efficient. Is there a way that we should think as bookings rebuild from an incremental margin perspective and how the shape may differ than what we've seen previously? And second, kind of as expected, you're going to draw down on the cash a bit, I guess, as people redeem vouchers. How should we think about the cash usage progression over the next couple of quarters? And when will that trough? Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Ed, Alberto. Good morning. Thanks for your question. On cash, I think we -- let me -- allow me to reiterate what we discussed in prior calls. I actually recall your question, OK? We are looking at the similar levels to what we have discussed, let's say, like a minimum cash balance for the year of around $250 million, OK, in particular, driven for the same reasons that you highlighted.
With regards to margins, clearly, we are in the trajectory that we're actually reaching breakeven point. We already, in the month of October, that we are closing those figures, we are seeing already blue lines when it comes to, at an EBITDA level, that is particularly encouraging. And when you start looking at margins, let's say, top to bottom, we are seeing take rate at similar levels to the ones we have been discussing. Let's recall what we have mentioned in prior calls about having, let's say, a long-term trajectory on take rate at around 12%, 12% plus, that is higher in around 50 basis points, we discussed pre-pandemic.
With regards to structural cost, what we have said is that the structural cost should actually benefit from, let's say, around 60% operating leverage, meaning that if orders were to grow around 100%, structural costs should be growing no more than 140%. And that, I would say, points to a picture on what could be the profitability of the Company going forward, that it should be in excess of what we were discussing pre-pandemic in the long run.
Edward Yruma -- KeyBanc -- Analyst
Got it. And maybe one other follow-up. You indicated you're looking to kind of rebuild inventory for packages, given some of the demand signals you're seeing. I guess, how quickly can that happen? And do you expect that you'll be able to have enough kind of capacity for the peak travel season? Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
We currently see -- I think that answer has maybe two different ideas. Number one is the Company continues to be, let's say, on the sidelines when it comes to, let's say, securing inventory as we have done pre-pandemic. Remember that we were actually at around, let's say, 5% -- between 5% to 10%, no more than that of, all the gross bookings we were selling were actually secured or paid in advance on capacity at hotels and/or airlines. Since the pandemic struck, we were completely on the sidelines of that, and we are not thinking about starting to push into that arena as of, let's say, the next few quarters. And we do not see a reason to do it given, number one, the ups and downs of the business. And number two, we see capacity, so there's no need to do it. Of course, we see that as a profitable business, and that will be -- we'll put our foot on the gas pedal as we are fully recovered because we see there's opportunity to gain extra margin. But for the time being, we will not do it.
Damian Scokin -- Chief Executive Officer
In addition, and in general, inventory, what we are seeing is that airlines are increasing their network significantly in Latin America for the upcoming two to three months. So everything that's available from the airlines and the hotels is going to be in Despegar. And we are seeing increased levels of inventory on both areas. So we are confident that the pace of the recovery will be sustained over the next few months.
Edward Yruma -- KeyBanc -- Analyst
Okay. Good. Thanks so much.
Operator
[Operator Instructions] Our next question comes from Kevin Kopelman with Cowen and Company. Please go ahead.
Emily Lavin -- Cowen and Company -- Analyst
Good morning. This is Emily on for Kevin. Thanks for taking my question. You mentioned a new marketing campaign launching in Q4, focused on affordability. And I was just wondering if you could help us understand how that will affect revenue take rate, installments and sales and marketing expenses in the quarter. Thanks.
Damian Scokin -- Chief Executive Officer
Hi, Emily, thanks for your question. This is Damian. The new campaign was extremely [Indecipherable] still running. And what we are pointing toward is getting back to travel and being able to afford to travel as we always have been positioned in the market position. We do not expect that this will represent obviously [Indecipherable] lower take rate. Remember that, as we mentioned during the prepared remarks, we have inherently mitigated our revenue management capabilities. So we are being much more effective than in the past in increasing demand without having to give up significantly on the take rate. So the numbers that Alberto referred to in the previous question should be sustained over the next few months.
Emily Lavin -- Cowen and Company -- Analyst
Very clear. Thank you.
Operator
Thank you. And ladies and gentlemen, this concludes your question-and-answer session. I'd like to turn the conference back over to the management team for any final remarks.
Damian Scokin -- Chief Executive Officer
Thank you very much. Just wanted to thank all of you for your participation and interest in Despegar. We hope you all remain healthy and safe and thanks for [Indecipherable]. Looking forward to seeing you on our next call. Bye.
Operator
[Operator Closing Remarks]
Duration: 27 minutes
Call participants:
Natalia Nirenberg -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Edward Yruma -- KeyBanc -- Analyst
Emily Lavin -- Cowen and Company -- Analyst
More DESP analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
The Motley Fool owns shares of and recommends Despegar.com, Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegarcom, Corp (NYSE: DESP) Q3 2021 Earnings Call Nov 17, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Third Quarter '21 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available in the Investors section of the Company's website, investor.despegar.com.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Third Quarter '21 Earnings Conference Call. Operator [Operator Closing Remarks] Duration: 27 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc -- Analyst Emily Lavin -- Cowen and Company -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegarcom, Corp (NYSE: DESP) Q3 2021 Earnings Call Nov 17, 2021, 8:00 a.m.
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Operator [Operator Closing Remarks] Duration: 27 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc -- Analyst Emily Lavin -- Cowen and Company -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegarcom, Corp (NYSE: DESP) Q3 2021 Earnings Call Nov 17, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Third Quarter '21 Earnings Conference Call.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Third Quarter '21 Earnings Conference Call. Operator [Operator Closing Remarks] Duration: 27 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc -- Analyst Emily Lavin -- Cowen and Company -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegarcom, Corp (NYSE: DESP) Q3 2021 Earnings Call Nov 17, 2021, 8:00 a.m.
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4ab48949-46ab-422f-861d-d66820696140
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728635.0
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2021-11-16 00:00:00 UTC
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Pre-Market Earnings Report for November 17, 2021 : LOW, TGT, TJX, BIDU, BILI, IQ, MTOR, BV, SCVL, NNOX, DESP, MANU
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-november-17-2021-%3A-low-tgt-tjx-bidu-bili-iq-mtor-bv-scvl
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nan
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nan
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The following companies are expected to report earnings prior to market open on 11/17/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Lowe's Companies, Inc. (LOW)is reporting for the quarter ending October 31, 2021. The building company's consensus earnings per share forecast from the 12 analysts that follow the stock is $2.32. This value represents a 17.17% increase compared to the same quarter last year. In the past year LOW has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 6.52%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LOW is 20.53 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Target Corporation (TGT)is reporting for the quarter ending October 31, 2021. The discount retail company's consensus earnings per share forecast from the 11 analysts that follow the stock is $2.85. This value represents a 2.15% increase compared to the same quarter last year. In the past year TGT has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 4.6%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TGT is 20.22 vs. an industry ratio of 24.80.
TJX Companies, Inc. (TJX)is reporting for the quarter ending October 31, 2021. The discount retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.81. This value represents a 14.08% increase compared to the same quarter last year. TJX missed the consensus earnings per share in the 1st calendar quarter of 2021 by -18.03%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TJX is 23.99 vs. an industry ratio of 24.80.
Baidu, Inc. (BIDU)is reporting for the quarter ending September 30, 2021. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.72. This value represents a 30.08% decrease compared to the same quarter last year. In the past year BIDU has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 28.81%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BIDU is 27.70 vs. an industry ratio of 8.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Bilibili Inc. (BILI)is reporting for the quarter ending September 30, 2021. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.80. This value represents a 77.78% decrease compared to the same quarter last year. BILI missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -12.5%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BILI is -37.11 vs. an industry ratio of 8.30.
iQIYI, Inc. (IQ)is reporting for the quarter ending September 30, 2021. The movie/tv production company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.33. This value represents a 37.50% decrease compared to the same quarter last year. In the past year IQ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 10%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IQ is -7.42 vs. an industry ratio of 35.10.
Meritor, Inc. (MTOR)is reporting for the quarter ending September 30, 2021. The auto (truck) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.55. This value represents a 266.67% increase compared to the same quarter last year. In the past year MTOR has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 24%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MTOR is 11.28 vs. an industry ratio of 18.10.
BrightView Holdings, Inc. (BV)is reporting for the quarter ending September 30, 2021. The business services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.38. This value represents a 15.15% increase compared to the same quarter last year. BV missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -5.71%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for BV is 15.15 vs. an industry ratio of 26.10.
Shoe Carnival, Inc. (SCVL)is reporting for the quarter ending October 31, 2021. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.13. This value represents a 121.57% increase compared to the same quarter last year. In the past year SCVL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 180%. The "days to cover" for this stock exceeds 14 days. Zacks Investment Research reports that the 2022 Price to Earnings ratio for SCVL is 9.50 vs. an industry ratio of 11.20.
NANO-X IMAGING LTD (NNOX)is reporting for the quarter ending September 30, 2021. The technology services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.29. This value represents a no change for the same quarter last year. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for NNOX is -20.55 vs. an industry ratio of -160.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Despegar.com, Corp. (DESP)is reporting for the quarter ending September 30, 2021. The transportation services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.33. This value represents a 19.51% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -8.39 vs. an industry ratio of 1.80.
Manchester United Ltd. (MANU)is reporting for the quarter ending September 30, 2021. The leisure (recreational) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.25. This value represents a 4.17% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for MANU is -30.81 vs. an industry ratio of 6.30.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending September 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -8.39 vs. an industry ratio of 1.80. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.72.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending September 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -8.39 vs. an industry ratio of 1.80. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LOW is 20.53 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending September 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -8.39 vs. an industry ratio of 1.80. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LOW is 20.53 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending September 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -8.39 vs. an industry ratio of 1.80. In the past year LOW has beat the expectations every quarter.
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a1add34e-6e71-4d20-b1c9-1dde4743d92f
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728636.0
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2021-11-15 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-11-15
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nan
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nan
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Stocks move up and down, and I've made it a habit of kicking off each new trading week with some investments that I think will be vulnerable in the year ahead. My three stocks to avoid last week were on the move -- down 15%, up 5%, and down 20% -- averaging out to an 10% decline.
The S&P 500 declined 0.3% for the week, so I was the relative winner with my bearish calls again. This week I see Despegar (NYSE: DESP), Digital World Acquisition (NASDAQ: DWAC), and iQiyi (NASDAQ: IQ) as stocks that you may want to consider steering clear from this week. Let's go over my reasons for the near-term pessimism.
Image source: Getty Images.
Despegar.com
We're wrapping up what has been a turbulent earnings season, and -- speaking of turbulence -- Latin American travel portal Despegar.com is reporting financial results on Wednesday morning. There was a time when Argentina's Despegar, Spanish for "to take off," was destined to live up to its moniker. Reality hasn't been as kind.
Despegar's flight has been grounded lately, and we're not just talking about the pandemic-related slowdown in travel. Revenue rose a mere 1% in 2018, declining a year later. Then business cratered in 2020, plummeting 75% last year in the wake of the pandemic.
The year-over-year comparisons are going to be kind for Wednesday's third-quarter update, but that follows last year's depressed showing, when the travel industry was in a holding pattern. The $74.9 million analysts see Despegar generating in revenue for the quarter that ended in September would be 43% below where it landed for the same quarter two years ago.
The news isn't likely to be any better on the bottom line. Analysts see Despegar's quarterly loss clocking in a lot lower than it did a year earlier, but the online travel specialist has also posted larger-than-expected deficits in each of its past four quarterly reports.
Digital World Acquisition
The one bearish call that didn't go my way last week was Digital World Acquisition, a special purpose acquisition company (SPAC) that took off last month after announcing a combination with Trump Media & Technology Group's social media platform, Trust Social.
The shares moved 5% higher after double-digit declines in back-to-back weeks. Volume has thinned out relative to its mid-October peak, but the SPAC is still trading at a huge premium to its investing firepower. There's power in polarization, but this isn't a political call. Only a handful of SPACs have been able to sustain the euphoria once their acquisition targets have been announced.
iQiyi
Like Despegar, iQIYI is a deficit-saddled international company that's reporting quarterly results on Wednesday. Unlike Despegar, iQiyi has actually posted smaller-than-projected losses over the past year. This would be a comforting omen for the streaming video entertainment leader in China, but its business model is showing some cracks that need addressing.
Growth has decelerated sharply every year since iQiyi went public in 2018. Revenue posted a year-over-year increase of just 3% in its latest quarter. Its earlier guidance calls for 6% to 12% improvement for the quarter it will discuss this week, but its base of paid subscribers has stagnated over the past two years. A recovery in ad revenue has helped, but the market won't have full confidence in the iQiyi model until it starts growing its paying customer counts again. The stock moved 12% higher last week, but that only means expectations are possibly too high heading into this critical week for iQiyi.
If you're looking for safe stocks, you aren't likely to find them in Despegar.com, Digital World Acquisition, and iQiyi this week.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Despegar. The Motley Fool recommends iQiyi. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This week I see Despegar (NYSE: DESP), Digital World Acquisition (NASDAQ: DWAC), and iQiyi (NASDAQ: IQ) as stocks that you may want to consider steering clear from this week. Despegar.com We're wrapping up what has been a turbulent earnings season, and -- speaking of turbulence -- Latin American travel portal Despegar.com is reporting financial results on Wednesday morning. There was a time when Argentina's Despegar, Spanish for "to take off," was destined to live up to its moniker.
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This week I see Despegar (NYSE: DESP), Digital World Acquisition (NASDAQ: DWAC), and iQiyi (NASDAQ: IQ) as stocks that you may want to consider steering clear from this week. Despegar.com We're wrapping up what has been a turbulent earnings season, and -- speaking of turbulence -- Latin American travel portal Despegar.com is reporting financial results on Wednesday morning. There was a time when Argentina's Despegar, Spanish for "to take off," was destined to live up to its moniker.
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This week I see Despegar (NYSE: DESP), Digital World Acquisition (NASDAQ: DWAC), and iQiyi (NASDAQ: IQ) as stocks that you may want to consider steering clear from this week. If you're looking for safe stocks, you aren't likely to find them in Despegar.com, Digital World Acquisition, and iQiyi this week. Despegar.com We're wrapping up what has been a turbulent earnings season, and -- speaking of turbulence -- Latin American travel portal Despegar.com is reporting financial results on Wednesday morning.
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This week I see Despegar (NYSE: DESP), Digital World Acquisition (NASDAQ: DWAC), and iQiyi (NASDAQ: IQ) as stocks that you may want to consider steering clear from this week. Despegar.com We're wrapping up what has been a turbulent earnings season, and -- speaking of turbulence -- Latin American travel portal Despegar.com is reporting financial results on Wednesday morning. There was a time when Argentina's Despegar, Spanish for "to take off," was destined to live up to its moniker.
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728637.0
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2021-10-11 00:00:00 UTC
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What Type Of Shareholders Own The Most Number of Despegar.com, Corp. (NYSE:DESP) Shares?
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DESP
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https://www.nasdaq.com/articles/what-type-of-shareholders-own-the-most-number-of-despegar.com-corp.-nyse%3Adesp-shares-2021
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The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.
Despegar.com isn't enormous, but it's not particularly small either. It has a market capitalization of US$835m, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Despegar.com.
NYSE:DESP Ownership Breakdown October 11th 2021
What Does The Institutional Ownership Tell Us About Despegar.com?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Despegar.com does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Despegar.com, (below). Of course, keep in mind that there are other factors to consider, too.
NYSE:DESP Earnings and Revenue Growth October 11th 2021
It looks like hedge funds own 5.9% of Despegar.com shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Expedia Group, Inc. is currently the company's largest shareholder with 15% of shares outstanding. The second and third largest shareholders are Arisaig Partners (Asia) Pte Ltd. and Ancient Art, L.P., with an equal amount of shares to their name at 5.9%.
After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Despegar.com
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own some shares in Despegar.com, Corp.. It has a market capitalization of just US$835m, and insiders have US$9.7m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, with a 29% stake in the company, will not easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Public Company Ownership
It appears to us that public companies own 15% of Despegar.com. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Despegar.com better, we need to consider many other factors.
Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Despegar.com isn't enormous, but it's not particularly small either. Let's take a closer look to see what the different types of shareholders can tell us about Despegar.com.
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The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. NYSE:DESP Earnings and Revenue Growth October 11th 2021 It looks like hedge funds own 5.9% of Despegar.com shares. Despegar.com isn't enormous, but it's not particularly small either.
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Public Company Ownership It appears to us that public companies own 15% of Despegar.com. The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Despegar.com isn't enormous, but it's not particularly small either.
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The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Despegar.com isn't enormous, but it's not particularly small either. Let's take a closer look to see what the different types of shareholders can tell us about Despegar.com.
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728638.0
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2021-08-19 00:00:00 UTC
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Despegarcom, Corp (DESP) Q2 2021 Earnings Call Transcript
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https://www.nasdaq.com/articles/despegarcom-corp-desp-q2-2021-earnings-call-transcript-2021-08-19
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Image source: The Motley Fool.
Despegarcom, Corp (NYSE: DESP)
Q2 2021 Earnings Call
Aug 19, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the Despegar Second Quarter 2021 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investors Section of the Company's website www.investor.despegar.com. There will be an opportunity for you to ask questions at the end of today's presentation. [Operator Instructions]
Now, I would like to turn the call over to Ms. Natalia Nirenberg of Investor Relations. Please go ahead.
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Natalia Nirenberg -- Investor Relations
Good morning everyone and thanks for joining us today for a discussion of our second quarter 2021 results. In addition to reporting financial results in accordance with US Generally Accepted Accounting Principles, we discuss certain non-GAAP financial measures and operating metrics, including foreign exchange neutral calculation. Investors should read the definitions of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation as substitute for or superior to GAAP financial measures and are provided as supplemental information only.
Before we begin our prepared remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs, and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the company's control. These include, but are not limited to expectations and assumptions related to the impact of the COVID-19 pandemic and integration and performance of the businesses we acquired, including Best Day and Koin. For a description of these risks, please refer to our filings with the Securities and Exchange Commission and our press release.
Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the second quarter and update you on our strategic priorities; Alberto Lopez Gaffney, our CFO, will then discuss the quarter's financial results. After that, we'll open the call to your questions.
Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia, and good morning, everyone. Thank you for joining us and for your interest in Despegar. We are pleased to report the best quarter since the onset of the pandemic. Thanks to our geographic diversification strategy, gross bookings and transactions increased 32% and 8%, respectively over the first quarter of 2021. If we exclude Argentina and Brazil, gross bookings were up 64% and transactions increased 44%, when compared to the first quarter of 2021. We experienced certain recovery in Mexico, driven by Best Day, as well as in Colombia as most of these countries entered their pick summer travel season. Additionally, travel restrictions were less significant in these two countries and pent-up demand contributed to the strong performance.
Moreover, ASPs in the quarter were up 22% sequentially, driven mainly by 63% increase in international transactions, but again we experienced a high take rate even more so when excluding Brazil, which faced a second wave of COVID, which drove a surge in extraordinary cancelations. Also contributing to this quarter's take rate are the investments we have made in technology and [Technical Issues], which allow us to price more accurately, improving algorithms to cut through more profitable transactions and the continuation from Best Day, which have higher take rate were key drivers.
In turn, we also saw non-air products capture larger portion of our second quarter. Looking at our second quarter financial results, our adjusted EBITDA loss in the quarter, which exclude extraordinary charges was somewhat $4 million lower than the first quarter of 2021 results. As mentioned previously, we believe the company on a stand-alone basis can be breakeven when reaching quarterly gross bookings of $400 million. These excluding extraordinary charges and call center costs resulting from customers cancellations and rescheduling. Lastly, we continued to be vigilant about our cash position. As a result, our balance sheet remains healthy with over $300 million in cash.
Moving next for a discussion of the LatAm travel industry on Page four. Almost two years into the pandemic and our business remains disrupted by this health crisis. During the second quarter, we can call out two factors that had the most impact on our P&L. First, countries with lower restrictions [Technical Issues] Mexico and Colombia, so better travel trends. By contrast, Brazil was hit with the second wave of COVID, while Argentina and Chile were impacted by another round of higher mobility restrictions imposed by their governments. Second, our geographic diversification provided the seasonality offset. Following strategic acquisitions, we have generally removed the seasonality factor from our results. Now we have summer, the peak travel period all year round in our business model.
Now for a few highlights by country. Starting with Mexico, the highlight in the quarter accounting for 33% of transactions, up 700 basis points from the first quarter of 2021. Although the country still has a low vaccination rate, the travel industry has shown sustained recovery, as there are very few restrictions in place and the second quarter was the start of the summer season. In turn, gross bookings were up 49%, as compared to the second quarter of 2019.
Moving next to Colombia, while gross bookings were about 2% above the second quarter of 2019 pre-pandemic levels with recovery driven by both the Mexico and international travelers. Sequentially, gross bookings increased 99%. Colombia represented 22% of total transactions this quarter, an 800 basis points increase from the first quarter of 2021.
Brazil firmly our largest market now accounted for 25% of transactions, compared to 38% in the first quarter of 2021. With the country facing a second wave of COVID and a tightening of more meaningful restrictions, transactions were down 33% quarter-over-quarter. Additionally, part of this decrease is also attributable to seasonality factors as Brazil is in the winter season, whereas Mexico and Colombia are in peak summer travel months. As a result, gross bookings were down 64%, when compared with the second quarter of 2019, and the positive sign as we move through the quarter where we tend to see an easing of restrictions and gross bookings will improve each month in the quarter.
Nevertheless, this was not enough as Argentina and Chile both experienced a tightening of mobility restrictions with Argentina's border basically closed, thus impacting travel. On a positive note, Chile has a high vaccination rate with 63% of the population fully vaccinated, which bodes well with safer travel. Notably, the level of cancellations observed [Phonetic] through the peak of the second wave would comprise the months of April to June of this year was 55% below the one observed in the same period last year, when we experienced the first COVID wave. These results not only reflect better market conditions, but also the measures we have implemented to assess the risk of inter transaction.
Moving to Slide 5, Latam on average continues to have more mobility restrictions in place than the US and Europe. Although there have been some periods when restrictions were eased, in general, the region has mostly curtailed travel as borders were closed or restricted during a big portion of the first half of the year. You can see these more clearly detailed in the chart on Page five. Earlier, I spoke about the importance of Mexico to our results in the quarter. And as also shown in this chart, travel is permitted in Mexico and their borders are open. Thus giving us confidence that when see similar lifting of restrictions in our other key markets, travel will once again pick up.
As mentioned in previous calls, we estimate that the recovery path in Latam is lagging six months, when compared to the recovery with our travel in the US, mainly because the vaccination rollout took longer. Fortunately, the pace of vaccination has accelerated across geographies by coming from very low levels last quarter. We are well positioned with broad geographic coverage and capital base to capture anticipated recovery in our main markets.
Now please turn to Slide six. Although COVID has impacted the overall travel industry, we have continued to advance on our strategic initiatives, and in some instances, we have accelerated our plans. We launched our loyalty program in the second half of 2018 [Phonetic] in Brazil followed by the launch in Argentina. And during the second quarter this year we launched this program in Mexico. In the short period that the program has been available, approximately 13% of our Mexican customers have signed up. Also in Mexico, we are almost finished integrating Best Day into our operations with both the B2C and the B2B already integrated into the Despegar platform.
Now we are working steadily to finalize the integration of the In-destination activities verticals by the first quarter of next year. In Brazil, we have been offering more financing options to customers. Koin has been key to this. At Koin, we are implementing a risk-based pricing strategy, where the interest rate that we charge depends on the risk profile of each customer based on internal and external sources of data. We are also adding B2B products that we are offering to e-commerce platforms, payment gateways and individual merchants.
So far, we have two different verticals. First, we offer merchants the possibility to use Boleto Parcelado, our buy, now pay later payment capability. Second, we also offer our payments an anti-fraud capabilities to companies from which we're taking a fee per client transaction. More recently, we have begun to work with some key online loan providers in Brazil, where we are as a distribution channel paying the fee for each transaction that is closed.
I will now turn the call over to Alberto to discuss the quarter's financial results.
Alberto Lopez Gaffney -- Chief Financial Officer
Thank you, Damian and thank you all for joining us today. Moving on to Slide seven, as Damian noted, Colombia and Mexico posted strong recovery trends. However, demand in Brazil, which is our most relevant market was significantly affected by the second COVID wave. To a lesser extent, this was also the case in Argentina and Chile. This resulted in a 76% sequential increase in extraordinary cancellations to nearly $8 million this quarter versus $4 million in the prior one.
Excluding these extraordinary cancellations, we delivered a solid take rate of 14.4%, reflecting the initiatives we are undertaking on several fronts to further support profitability. Continued improvements in our algorithms are allowing us to make smarter pricing conversion decisions. Our healthy take rate also reflects the positive impact from Best Day in Mexico, given its higher share of non-air products. As we mentioned in previous calls, we believe that this take rate also reflects the industry's current circumstances.
Moving on to revenues, excluding higher customer's extraordinary cancellations, we delivered a 26% sequential increase in our top line, reaching $71 million. Although revenues were 39% below pre-pandemic levels.
Now, please turn to Slide eight. Comparable adjusted EBITDA, excluding extraordinary charges was a loss of $10.5 million, representing a sequential improvement of nearly $5 million and the lowest quarterly loss since the COVID-19 outbreak. This compares to adjusted EBITDA losses of $14 million in the prior quarter and $31 million in the second of the 2020. One-time charges this quarter were nearly $12 million, most of them related to extraordinary cancellations resulting from the surge in COVID cases.
Now please turn to Slide nine. We ended the quarter with a comfortable cash position of $316 million, down $10 million. While the second COVID wave put pressure on achieving higher top line growth. It also drove extraordinary customer cancellations as we have been discussing. As a result, we granted a higher number of vouchers to customers whose trips were impacted by the virus this quarter. These benefited working capital, with the use of cash declining nearly $10 million, compared to a drop of $25 million in the prior quarter. At the same time, operating cash needs declined to $1 million, down from over $7 million in the first quarter of the year. In turn, total net operational short-term obligations stood at $216 million, increasing 3% sequentially.
Now please turn to Slide 10, for the key takeaways of the quarter. Let me step back a moment to go over the five takeaways of today's call. First, increased geographic diversification continued to drive revenue growth and helped to smoothen the asymmetrical dynamics observed across our LatAm markets, both in terms of recovery trends and seasonal patterns. For example, countries facing lower restrictions such as Mexico and Colombia recovered at a very good pace. In fact, when excluding Argentina and Chile that faced higher travel bans, international transactions were up 120%. These sequentially signaling strong pent-up demand in markets more open to travel. In turn, demand in Brazil that was very weak in April and May, began to improve in June, with this positive trend continuing into July.
In summary, the strategy we put in place over the last couple of years has allowed us to grow our business this quarter, despite the travel restrictions imposed in Brazil, due to the second COVID wave. As discussed earlier, cancellations for this quarter, restricting our top line growth translates into profitability. However, when excluding extraordinary cancellations, our adjusted EBITDA was better than last quarters. Additionally, the second wave of COVID-19 and the resulting cancellations triggered the issuance of vouchers to customers, which prevented us from burning the level of cash that we reported last quarter.
Second, our take rate remained at solid levels, with revenues excluding extraordinary cancellations 39% below pre-pandemic levels, beating the 56% decline in gross bookings during the same period.
Third, we continue advancing on our customer engagement initiatives, leveraging the consistent adoption of our loyalty program observed in both Brazil and Argentina, which reached over 900,000 members. This quarter, we successfully launched our loyalty program in Mexico.
Four, we are expanding Koin's B2B product offering beyond Boleto Parcelado by adding new partnerships to turn our verticals.
And finally, in terms of ESG, we are pleased to report the launch of our inaugural corporate sustainability report prepared under the SASB framework for the e-commerce sector. These constitutes that they are the first steps in its ESG journey and we look forward to continue advancing on this front.
Now please turn to Slide 11 for final remarks. Consolidated gross bookings in July were in line with the levels posted in June, which accounted for the highest gross bookings during the first half of the year. During the third quarter '21, we expect the geographic mix to change in line with seasonality, as well as a gradual recovery in Brazil. Demand in Mexico and Colombia are expected to remain relatively stable, considering that demand in the third quarter is seasonally lower.
We also plan to continue building new verticals at Koin on strengthening its B2B business with addition of platforms, payment getaways and digital wallets. We also expect to further benefit from the implementation of risk based pricing, while focusing on expanding to other geographies. The integration of Best Day is also progressing nicely and we remain on track to complete this process by Q1 '22.
The B2C migration to Despegar's platform is allowing us to beat our internal targets for key KPIs, such as conversion rate and revenue margin in Best Day's B2C segment. The first quarter was the first time that Best Day, B2C segment achieved profitability. Finally, we plan to launch a materiality assessment during the fourth quarter of this year as we continue our goal of advancing in our ESG journey.
This concludes our prepared remarks. We are ready to answer your question. Operator, please open the line for questions.
Questions and Answers:
Operator
We will now begin the question-and-answer session. [Operator Instructions] And our first question comes from Ed Yruma of KeyBanc Capital Markets. Please go ahead.
Ed Yruma -- KeyBanc Capital Markets -- Analyst
Hey, good morning, guys. Just a couple of quick ones from me. I guess, first as you prepare for seasonal recovery in Argentina and Chile, are you anticipating that those travelers are domestic or you're looking at international packages?
Second, it seems like you have a very interesting, kind of, hidden asset in Koin and it sounds like you're expanding into growth. I guess what kind of investment is necessary in the business as you build these new verticals?
And then finally, just one housekeeping question on the tourist payable on the cash flow statement. How should we think about that going forward? Thank you.
Damian Scokin -- Chief Executive Officer
Hi, Ed. How are you? This is Damian. Thanks for the question. In terms of Argentina and Chile and in particular, not only those countries, but in general, we are tracking both the evolution of domestic and international passengers. In general, you can see that domestic has recovered almost twice to 3 times as fast as international. We expect that to remain as a trend in the future.
So to your question, yes, going forward, we're expecting Q3 and Q4 for domestic passengers to continue growing faster than international, and taking longer for international passengers to catch up and reach pre-pandemic levels. I don't know if that addresses your question.
Ed Yruma -- KeyBanc Capital Markets -- Analyst
It does.
Damian Scokin -- Chief Executive Officer
And as per Koin, yes, we definitely are moving into not only increasing the penetration of Koin within this regard and the color in particular, while also moving into other verticals. And also we are exploring options to take Koin to other geographies, where Despegar is very relevant. As you know, we will not disclose specific financial requirements for that. But I can tell you that the way we're managing the expansion and the way we're managing payables and receivables with vendors and clients. It has not been a significant use of cash and we don't expect that to be in the future.
Alberto Lopez Gaffney -- Chief Financial Officer
Hey, it's Alberto joining here for your third question on tourist payables. And clearly in this quarter, we certainly benefited from -- I think, again, the bottom line is we -- the second wave in Brazil, certainly impacted us negatively, so that actually curtailed our growth rate. Having said that, OK, it also drove second wave of cancellations, OK, I -- as already mentioned on the earnings release. That second wave of cancellations had a positive impact on working capital, from the perspective that we granted either more vouchers or refunds, OK? That allowed us to conserve cash.
If you look at the burn, the prior quarter was around $25 million, this quarter was around $10 million. So we expect that in the future quarters, our cash balance will diminish from the perspective of how many vouchers get redeemed in our platform. And at the same time, we returned money to clients in the proper schedule, OK? Having said that, we also compensate, because the growth rate of the company, OK? As we have positive working capital, we generate cash from that positive working capital.
All in all, we expect that the minimum cash balance of the company will be at around year-end. I remember discussing this with you in prior calls and the expectation was more around these second quarter. The situation keeps on getting delayed and these tourist payable balance, again is not something that you need to pay it immediately. It's a very long cycle that actually as I had just highlighted on this response gets affected by the different waves of COVID in the region.
Very importantly, as you know, OK, we do pay our suppliers following checkout, OK. So in the end, the expectation is that a phase recover, we will generate cash that we only need to cancel that down, following checkout. So we continue having the positive working capital dynamics that we pivoted pre-COVID.
Ed Yruma -- KeyBanc Capital Markets -- Analyst
Great. Thank you guys.
Damian Scokin -- Chief Executive Officer
Thank you.
Operator
The next question comes from Kevin Kopelman of Cowen. Please go ahead.
Emily DiNovo -- Cowen -- Analyst
Hi, good morning. This is Emily on for Kevin. I was wondering, if you could help us understand your market share strategy at present? And once the market recovers, what tools we use to gain share either organically or inorganically? Thank you.
Damian Scokin -- Chief Executive Officer
Emily. Hi, this is Damian. As we mentioned in the prepared remarks, it was a very positive quarter in terms of share. And in particular, because those share gains were obtained with the revenue margins, which I described. What was remarkable is that within the strategy, we've been sharing with you over the last few quarters, trying to maximize profitability, we were able to gain share, because of the revenue management algorithms that we put in place in different markets. So, organically, we continue to improve our ability to remain competitive and taking advantage of specific pricing opportunities.
As per inorganically as part of the overall strategy of the company, you know, that we are actively pursuing opportunities that help us to apply those tool in a broader scale. So basically, we are very happy with the results so far. And we expect that to increase in a recovering market.
Emily DiNovo -- Cowen -- Analyst
Very helpful. Thank you.
Operator
[Operator Instructions] And our next question will come from Brian Nowak of Morgan Stanley. Please go ahead.
Alex Wong -- Morgan Stanley -- Analyst
Hi, good morning. This is Alex Wong on for Brian. Thanks for taking the question. Just two, one in your more reopened markets like Mexico and Colombia. Can you maybe talk to how you may be leaning into marketing spend to capitalize on some of the pent-up demand? And maybe provide a general update on what you're seeing from a competitive landscape?
Second question, you mentioned a strong take rate again in the quarter about a 400 basis point increase versus 2Q '19. Can you help us quantify maybe how much of that may be due to the improved pricing algorithm that you talked about versus geographic mix and versus Best Day contribution? And how durable you think that take rate is?
Alberto Lopez Gaffney -- Chief Financial Officer
Okay. Alex, hi. Thanks for the question. As you know that we do not disclose specific numbers and in particular take rate by geography. What I can tell you is that we've been very careful in terms of our marketing spend by geography depending on we believe it's the different stages of the market. In Mexico and Colombia to your specific question, as you correctly point these were the markets during Q2 have been closer to full recovery, particularly in Colombia. Accordingly, we have been much more aggressive in our investments in those two markets. And particularly in Colombia, I can't disclose at the general level that we've been gaining share significantly. And we received -- we started to see a very similar competitive dynamic in those markets as the one prior to the pandemic.
Obviously, not -- with just one difference not so intense, as many of our competitors have left business if you want. But all in all, we will react in terms of marketing spend and pricing aggressiveness, according to the evolution of the different markets. Mexico and Colombia being the ones closest to recovery. As per the sustainability of the take rate, I think we mentioned in prior calls that we do not expect these to be the new normal. This [Indecipherable] company that has a significant growth potential going forward. And -- when the market returns to normal levels, we are ready to invest not only our full capabilities, where our financial resources to continue growing aggressively.
Damian Scokin -- Chief Executive Officer
And just complemented the take rate response with the new algorithms, with the change in mix, the improved mix that we actually have more non-air, more packages, etc. The expectation is, as you might recall, what we discussed in the December 2019 Investor Day that we have a 11.5% [Phonetic] plus take rate Horizon in the middle long-run. We do believe that certainly with the change in mix and the strategy that can be improved and we are looking more now in the 12% plus. Okay, that's long-term, that of course excludes all the noise that you have today with our industry that is operating at less than half its capacity.
Alex Wong -- Morgan Stanley -- Analyst
Great. Thank you.
Operator
This concludes our question-and-answer session. I would like to turn the conference back over to Damian Scokin, CEO, for any closing remarks.
Damian Scokin -- Chief Executive Officer
Well. Just wanted to thank you all for joining us today, and we look forward to seeing you in our next call. Thank you very much.
Operator
[Operator Closing Remarks]
Duration: 32 minutes
Call participants:
Natalia Nirenberg -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Ed Yruma -- KeyBanc Capital Markets -- Analyst
Emily DiNovo -- Cowen -- Analyst
Alex Wong -- Morgan Stanley -- Analyst
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The Motley Fool owns shares of and recommends Despegar.com, Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In summary, the strategy we put in place over the last couple of years has allowed us to grow our business this quarter, despite the travel restrictions imposed in Brazil, due to the second COVID wave. Despegarcom, Corp (NYSE: DESP) Q2 2021 Earnings Call Aug 19, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Quarter 2021 Earnings Call.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Quarter 2021 Earnings Call. Operator [Operator Closing Remarks] Duration: 32 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Ed Yruma -- KeyBanc Capital Markets -- Analyst Emily DiNovo -- Cowen -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegarcom, Corp (NYSE: DESP) Q2 2021 Earnings Call Aug 19, 2021, 8:00 a.m.
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Operator [Operator Closing Remarks] Duration: 32 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Ed Yruma -- KeyBanc Capital Markets -- Analyst Emily DiNovo -- Cowen -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegarcom, Corp (NYSE: DESP) Q2 2021 Earnings Call Aug 19, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Quarter 2021 Earnings Call.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Quarter 2021 Earnings Call. Operator [Operator Closing Remarks] Duration: 32 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Ed Yruma -- KeyBanc Capital Markets -- Analyst Emily DiNovo -- Cowen -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegarcom, Corp (NYSE: DESP) Q2 2021 Earnings Call Aug 19, 2021, 8:00 a.m.
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e7e53e47-1c6f-4aab-afb2-f18a2478450d
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728639.0
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2021-08-18 00:00:00 UTC
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Pre-Market Earnings Report for August 19, 2021 : EL, TPR, KSS, BJ, PFGC, M, MSGS, BZUN, DESP, CALT, QIWI, LYTS
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-19-2021-%3A-el-tpr-kss-bj-pfgc-m-msgs-bzun-desp-calt
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The following companies are expected to report earnings prior to market open on 08/19/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Estee Lauder Companies, Inc. (EL)is reporting for the quarter ending June 30, 2021. The cosmetic & toiletries company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.51. This value represents a 196.23% increase compared to the same quarter last year. EL missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -178.95%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for EL is 52.12 vs. an industry ratio of 53.30.
Tapestry, Inc. (TPR)is reporting for the quarter ending June 30, 2021. The retail (shoe) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.66. This value represents a 364.00% increase compared to the same quarter last year. In the past year TPR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 70%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TPR is 14.54 vs. an industry ratio of 4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Kohl's Corporation (KSS)is reporting for the quarter ending July 31, 2021. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.30. This value represents a 620.00% increase compared to the same quarter last year. In the past year KSS and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for KSS is 11.78 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
BJ's Wholesale Club Holdings, Inc. (BJ)is reporting for the quarter ending July 31, 2021. The business services company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.65. This value represents a 15.58% decrease compared to the same quarter last year. In the past year BJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 26.32%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BJ is 19.91 vs. an industry ratio of 33.30.
Performance Food Group Company (PFGC)is reporting for the quarter ending June 30, 2021. The wholesale food company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.50. This value represents a 158.14% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PFGC is 34.81 vs. an industry ratio of 15.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Macy's Inc (M)is reporting for the quarter ending July 31, 2021. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.22. This value represents a 127.16% increase compared to the same quarter last year. In the past year M has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 195.12%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for M is 7.84 vs. an industry ratio of 9.30.
Madison Square Garden Sports Corp. (MSGS)is reporting for the quarter ending June 30, 2021. The leisure (recreational) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.63. This value represents a 80.67% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MSGS is -46.51 vs. an industry ratio of -38.20.
Baozun Inc. (BZUN)is reporting for the quarter ending June 30, 2021. The information technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.08. This value represents a 71.43% decrease compared to the same quarter last year. In the past year BZUN Zacks Investment Research reports that the 2021 Price to Earnings ratio for BZUN is 30.96 vs. an industry ratio of 28.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. The transportation services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.31. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90.
Calliditas Therapeutics AB (CALT)is reporting for the quarter ending June 30, 2021. The drug company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.72. This value represents a 132.26% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CALT is -8.44 vs. an industry ratio of -9.60, implying that they will have a higher earnings growth than their competitors in the same industry.
QIWI plc (QIWI)is reporting for the quarter ending June 30, 2021. The financial transactions company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.44. This value represents a 30.16% decrease compared to the same quarter last year. QIWI missed the consensus earnings per share in the 4th calendar quarter of 2020 by -9.84%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for QIWI is 5.34 vs. an industry ratio of 38.60.
LSI Industries Inc. (LYTS)is reporting for the quarter ending June 30, 2021. The building company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.05. This value represents a 16.67% decrease compared to the same quarter last year. In the past year LYTS has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 20%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LYTS is 26.78 vs. an industry ratio of 14.40, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. The cosmetic & toiletries company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.51.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TPR is 14.54 vs. an industry ratio of 4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TPR is 14.54 vs. an industry ratio of 4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. In the past year KSS and beat the expectations the other three quarters.
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c2ed773f-947b-455c-ba3a-08ba00059698
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728640.0
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2021-08-18 00:00:00 UTC
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Pre-Market Earnings Report for August 19, 2021 : EL, TPR, KSS, BJ, PFGC, M, MSGS, BZUN, DESP, CALT, QIWI, LYTS
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-19-2021-%3A-el-tpr-kss-bj-pfgc-m-msgs-bzun-desp-calt-0
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nan
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The following companies are expected to report earnings prior to market open on 08/19/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Estee Lauder Companies, Inc. (EL)is reporting for the quarter ending June 30, 2021. The cosmetic & toiletries company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.51. This value represents a 196.23% increase compared to the same quarter last year. EL missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -178.95%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for EL is 52.12 vs. an industry ratio of 53.30.
Tapestry, Inc. (TPR)is reporting for the quarter ending June 30, 2021. The retail (shoe) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.66. This value represents a 364.00% increase compared to the same quarter last year. In the past year TPR has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 70%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TPR is 14.54 vs. an industry ratio of 4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Kohl's Corporation (KSS)is reporting for the quarter ending July 31, 2021. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.30. This value represents a 620.00% increase compared to the same quarter last year. In the past year KSS and beat the expectations the other three quarters. Zacks Investment Research reports that the 2022 Price to Earnings ratio for KSS is 11.78 vs. an industry ratio of 9.30, implying that they will have a higher earnings growth than their competitors in the same industry.
BJ's Wholesale Club Holdings, Inc. (BJ)is reporting for the quarter ending July 31, 2021. The business services company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.65. This value represents a 15.58% decrease compared to the same quarter last year. In the past year BJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 26.32%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for BJ is 19.91 vs. an industry ratio of 33.30.
Performance Food Group Company (PFGC)is reporting for the quarter ending June 30, 2021. The wholesale food company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.50. This value represents a 158.14% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PFGC is 34.81 vs. an industry ratio of 15.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Macy's Inc (M)is reporting for the quarter ending July 31, 2021. The retail company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.22. This value represents a 127.16% increase compared to the same quarter last year. In the past year M has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 195.12%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for M is 7.84 vs. an industry ratio of 9.30.
Madison Square Garden Sports Corp. (MSGS)is reporting for the quarter ending June 30, 2021. The leisure (recreational) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.63. This value represents a 80.67% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for MSGS is -46.51 vs. an industry ratio of -38.20.
Baozun Inc. (BZUN)is reporting for the quarter ending June 30, 2021. The information technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.08. This value represents a 71.43% decrease compared to the same quarter last year. In the past year BZUN Zacks Investment Research reports that the 2021 Price to Earnings ratio for BZUN is 30.96 vs. an industry ratio of 28.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. The transportation services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.31. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90.
Calliditas Therapeutics AB (CALT)is reporting for the quarter ending June 30, 2021. The drug company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.72. This value represents a 132.26% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CALT is -8.44 vs. an industry ratio of -9.60, implying that they will have a higher earnings growth than their competitors in the same industry.
QIWI plc (QIWI)is reporting for the quarter ending June 30, 2021. The financial transactions company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.44. This value represents a 30.16% decrease compared to the same quarter last year. QIWI missed the consensus earnings per share in the 4th calendar quarter of 2020 by -9.84%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for QIWI is 5.34 vs. an industry ratio of 38.60.
LSI Industries Inc. (LYTS)is reporting for the quarter ending June 30, 2021. The building company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.05. This value represents a 16.67% decrease compared to the same quarter last year. In the past year LYTS has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 20%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LYTS is 26.78 vs. an industry ratio of 14.40, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. The cosmetic & toiletries company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.51.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TPR is 14.54 vs. an industry ratio of 4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TPR is 14.54 vs. an industry ratio of 4.40, implying that they will have a higher earnings growth than their competitors in the same industry.
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Despegar.com, Corp. (DESP)is reporting for the quarter ending June 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -12.42 vs. an industry ratio of 9.90. In the past year KSS and beat the expectations the other three quarters.
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728641.0
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2021-06-13 00:00:00 UTC
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Is Despegar.com (NYSE:DESP) Using Debt Sensibly?
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DESP
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https://www.nasdaq.com/articles/is-despegar.com-nyse%3Adesp-using-debt-sensibly-2021-06-13
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nan
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David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. As with many other companies Despegar.com, Corp. (NYSE:DESP) makes use of debt. But is this debt a concern to shareholders?
What Risk Does Debt Bring?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. Of course, plenty of companies use debt to fund growth, without any negative consequences. When we think about a company's use of debt, we first look at cash and debt together.
What Is Despegar.com's Net Debt?
As you can see below, Despegar.com had US$15.9m of debt at March 2021, down from US$17.5m a year prior. However, its balance sheet shows it holds US$309.4m in cash, so it actually has US$293.5m net cash.
NYSE:DESP Debt to Equity History June 13th 2021
How Strong Is Despegar.com's Balance Sheet?
The latest balance sheet data shows that Despegar.com had liabilities of US$355.3m due within a year, and liabilities of US$231.8m falling due after that. Offsetting this, it had US$309.4m in cash and US$60.5m in receivables that were due within 12 months. So it has liabilities totalling US$217.3m more than its cash and near-term receivables, combined.
While this might seem like a lot, it is not so bad since Despegar.com has a market capitalization of US$910.6m, and so it could probably strengthen its balance sheet by raising capital if it needed to. But it's clear that we should definitely closely examine whether it can manage its debt without dilution. While it does have liabilities worth noting, Despegar.com also has more cash than debt, so we're pretty confident it can manage its debt safely. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Despegar.com's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Over 12 months, Despegar.com made a loss at the EBIT level, and saw its revenue drop to US$107m, which is a fall of 77%. That makes us nervous, to say the least.
So How Risky Is Despegar.com?
By their very nature companies that are losing money are more risky than those with a long history of profitability. And the fact is that over the last twelve months Despegar.com lost money at the earnings before interest and tax (EBIT) line. And over the same period it saw negative free cash outflow of US$68m and booked a US$172m accounting loss. Given it only has net cash of US$293.5m, the company may need to raise more capital if it doesn't reach break-even soon. Summing up, we're a little skeptical of this one, as it seems fairly risky in the absence of free cashflow. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. For example, we've discovered 1 warning sign for Despegar.com that you should be aware of before investing here.
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the fact is that over the last twelve months Despegar.com lost money at the earnings before interest and tax (EBIT) line. As with many other companies Despegar.com, Corp. (NYSE:DESP) makes use of debt. What Is Despegar.com's Net Debt?
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The latest balance sheet data shows that Despegar.com had liabilities of US$355.3m due within a year, and liabilities of US$231.8m falling due after that. As with many other companies Despegar.com, Corp. (NYSE:DESP) makes use of debt. What Is Despegar.com's Net Debt?
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While it does have liabilities worth noting, Despegar.com also has more cash than debt, so we're pretty confident it can manage its debt safely. As with many other companies Despegar.com, Corp. (NYSE:DESP) makes use of debt. What Is Despegar.com's Net Debt?
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As with many other companies Despegar.com, Corp. (NYSE:DESP) makes use of debt. What Is Despegar.com's Net Debt? As you can see below, Despegar.com had US$15.9m of debt at March 2021, down from US$17.5m a year prior.
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2021-05-24 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-05-24
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nan
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In my three stocks to avoid article last week, I predicted that Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund (OTC: GDLC) would have a rough few days.
Despegar.com rose less than 1% for the week. The Latin American online travel portal had a rough quarter, posting a larger-than-expected loss on weaker-than-expected top-line results. The shares still held up for the week.
Riot Blockchain plunged 12% for the week. The Bitcoin (CRYPTO: BTC) mining specialist came under fire as cryptocurrency prices plummeted.
Finally, there was Grayscale Digital Large Cap Fund. If you thought Riot Blockchain investors had a rough week, the exchange-traded fund that owns stakes in five leading cryptocurrencies plummeted 34% last week.
Those three stocks averaged a 15% decline for the week, with a pair of them checking in with double-digit percentage slides. The S&P 500 declined by 0.4% for the week, so I was right. Right now, I see Zuora (NYSE: ZUO), Riot Blockchain, and Grayscale Digital Large Cap Fund as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week.
Image source: Getty Images.
1. Zuora
A lot of cloud-based growth stocks have fallen sharply since peaking in mid-February. Some of the biggest darlings of 2020 have fallen 30%, 40%, and in some cases even more than than 50% off their highs. Zuora enters this new trading week just 14% below February's highs.
Zuora seems to be in the right place. We're gravitating to a subscription-based economy, and Zuora's platform helps business models automate subscription order-to-revenue operations in real time. The rub here is that revenue growth has decelerated sharply for three consecutive fiscal years. Its dollar-based retention rate -- the percentage that it's making from returning customers compared to a year earlier -- has come to a screeching halt.
Third quarter 2019: 115%
Fourth quarter 2019: 112%
First quarter 2020: 110%
Second quarter 2020: 107%
Q3 2020: 106%
Q4 2020: 104%
Q1 2021: 103%
Q2 2021: 99%
Q3 2021: 99%
Q4 2021: 100%
Zuora has high hopes for growth to pick back up, but it's not likely to happen on Wednesday afternoon when it posts financial results for its fiscal first quarter. The stock has held up well relative to its cloud-leaning peers in this tech correction, but it will be hard to keep defying gravity after another uninspiring quarter this week.
2. Riot Blockchain
The cryptocurrency correction has taken its toll on a lot of the investments that soared during the go-go days of Bitcoin. Riot Blockchain was one of last year's hottest stocks. It's been taking crypto's swoon over the past month particularly hard.
Last week's 12% slide was bad, but things could keep getting worse. Riot Blockchain's Bitcoin mining has been successful in bearing fruit -- with 1,771 tokens on its books. With Bitcoin trading at roughly $35,000 on Thursday night, Riot Blockchain's stake that was worth as much as $115 million a month ago is worth just $62 million right now. With the product of Riot Blockchain's mining efforts starting to lose value it's hard to fathom it justifying its current $1.8 billion in enterprise value. At least one notable worrywart felt the stock should drop down to just $2 last month, and that was when Bitcoin itself was holding up a lot better than it is now.
3. Grayscale Large Cap Digital Fund
Grayscale Large Cap Digital Fund lost more than a third of its value last week. The silver lining here is that its net asset value didn't fall as hard. A week ago the fund was trading at a 16% premium to its holdings. It enters this week at a 1% discount. Friday was actually the first time that the young crypto fund did not close at a premium.
There's an opportunity here now if you believe in the long-term potential of digital currencies, but there are still two stiff headwinds that could keep Grayscale Large Cap Digital Fund back this week. For starters, crypto is still getting slammed. The smart money has to be holding out for another rough week for the fund's holdings. Then you have the two larger Grayscale trusts investing in single denominations -- Bitcoin and Ethereum (CRYPTO: ETH) -- fetching 18% and 13% discounts respectively to their net asset values. Bitcoin and Ethereum make up more than 95% of Grayscale Large Cap Digital Fund's assets.
If you're looking for safe stocks, you aren't likely to find them in Zuora, Riot Blockchain, and Grayscale Large Cap Digital Fund this week.
10 stocks we like better than Riot Blockchain, Inc
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Rick Munarriz owns shares of Ethereum. The Motley Fool owns shares of and recommends Bitcoin. The Motley Fool recommends Zuora. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In my three stocks to avoid article last week, I predicted that Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund (OTC: GDLC) would have a rough few days. Despegar.com rose less than 1% for the week. We're gravitating to a subscription-based economy, and Zuora's platform helps business models automate subscription order-to-revenue operations in real time.
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In my three stocks to avoid article last week, I predicted that Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund (OTC: GDLC) would have a rough few days. Despegar.com rose less than 1% for the week. Grayscale Large Cap Digital Fund Grayscale Large Cap Digital Fund lost more than a third of its value last week.
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In my three stocks to avoid article last week, I predicted that Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund (OTC: GDLC) would have a rough few days. Despegar.com rose less than 1% for the week. Grayscale Large Cap Digital Fund Grayscale Large Cap Digital Fund lost more than a third of its value last week.
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In my three stocks to avoid article last week, I predicted that Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund (OTC: GDLC) would have a rough few days. Despegar.com rose less than 1% for the week. Here's why I think these are three stocks to avoid this week.
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6f936067-a72f-47bf-b88f-8a36928da21f
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728643.0
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2021-05-19 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q1 2021 Earnings Call Transcript
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-q1-2021-earnings-call-transcript-2021-05-19
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Despegar.com, Corp. (NYSE: DESP)
Q1 2021 Earnings Call
May 19, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the Despegar First Quarter 2021 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investors section of the company's website www.investor.despegar.com. [Operator Instructions] This conference call is being recorded. [Operator Instructions]
Now, I would like to turn the call over to Ms. Natalia Nirenberg, Investor Relations. Please go ahead.
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Natalia Nirenberg -- Investor Relations
Good morning, everyone and thanks for joining us today for a discussion of our first quarter 2021 results. In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, we discussed certain non-GAAP financial measures and operating metrics, including foreign exchange neutral calculation. Investors should read the definitions of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation as substitute for or superior to GAAP financial measures, and are provided as supplemental information only.
Before we begin our prepared remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the company's control. These include, but are not limited to expectations and assumptions related to the impact of COVID-19 pandemic and integration and performance of the recently acquired including Best Day and Koin. For a description of these risks, please refer to our filings with the Securities and Exchange Commission and our press release.
Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the first quarter and update you on our strategic priorities. Alberto Lopez Gaffney, our CFO, will then discuss the quarter's financial results. After that, we will open the call to your questions. Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia and good morning, everyone. We hope that you and your families are staying safe and healthy. Last year, our first quarter call was focused on how we were going to weather the biggest crisis our business has ever faced. Now, one year after the pandemic and the global lockdowns began, we have demonstrated our operational resilience while improving our strategic capability. In the first quarter, we executed well against our priorities.
Now, let me discuss it separately, starting with geographic diversification. We significantly increased our presence in Mexico with the acquisition of Best Day and coupled with an easing of restriction in that country, we saw gross bookings increased 12% sequentially. Mexico in turn accounted for a larger percentage of our gross bookings in the quarter. We also experienced an active recovery in Colombia and a slight pickup in Chile. By contrast, Brazil and Argentina experienced a second wave of COVID-19 tampering demand for travel. Excluding these two markets, transactions were up 12% sequentially and gross bookings increased 14%.
As evidenced by the first quarter results, a balanced geographic diversification, we generate more sustainable growth going forward. Importantly, our market share has not been impacted by the volatility across the geographies where we operate. Moving next to our focus on profitability. As you have heard from us before, we are laser-focused on maintaining our lenient structural cost base. We achieved our target level in second half of 2020 as expected. And in the first quarter, we were able to maintain this cost in line with prior quarters. This focus on profitability has resulted in exceptionally high take rates over the past few quarters. And we achieved the highest level in five years within the first quarter of 2021.
Also contributing to the high take rate is an increasing share of non-air revenue. We will talk more about these, later in the call. Mobile accounted for 50% of transactions in the quarter, up 200 basis points from the first quarter of 2018, a pre-pandemic period. Mobile is a cost-efficient means for us to acquire and market to customers. Summarizing our first quarter results, we achieved geographic diversification, which partially offset with lower demand. High take rate reflecting an increase in non-air among other buyers, tight focus on cost controls and successful non-paid marketing programs. Adjusted EBITDA loss largely in line with the prior quarter and a solid cash position.
Moving next for a discussion of the LatAm travel industry on page 4. COVID has and still does present challenges for our business. Let me give you some color on how we are seeing travel restrictions in the key Latin American market. To begin, the residual effect on travel are still present, but we believe, we are most likely through the worst of it. Looking at the chart on the left, the green boxes point to countries where restrictions are easing, typically Mexico and Colombia and we are seeing some greenshoots although most recent social unrest in Colombia may affect mobility in the country. The red boxes point to countries where there has been a resurgence [Indecipherable] and restrictions have been imposed. These are Argentina, Brazil and Chile.
Impacted by the second wave, the crisis in Brazil, which was our largest market in previous quarters, was having worst moment toward the end of March. We are serving to slight recovery since then as the vaccination program is rolled out. Argentina is heading into the winter month, a period of slower travel and the vaccine rollout is moving very slowly with only 18% of the population having received the first dose. The picture in Chile is mixed with the country imposing some select restrictions in certain regions. In contrast, Chile has been successful with the vaccine rollout with 48% of the population having received at least one dose. As a point of reference, the U.S. is at around 48% of the population having received a first dose. As a result, we believe the situation in Chile will be getting better over the next few months.
I would like to call your attention to the chart on the right, which shows passenger strength in Brazil and Mexico for the past six months indexed to pre-pandemic 2018 levels. When restrictions are released, we can see a significant increase in demand as it is the case in Mexico where after some months of restrictions, travel trends had benefited not only from a decline in the number of cases but also from the arrival of the spring and summer season. Exactly, the opposite side is Brazil, where the industry contracted in light of the very severe restrictions and a significant increase in the number of COVID cases, which started to subside in April. While the pandemic is still with us and some geographies are experiencing second waves, examples, like the one we see in Mexico, show us that people are eager to travel again. As we have commented in the past, we are not expecting a linear recovery as restrictions are released at different times in each country.
This is also correlated with the vaccine rollout which will be key for consumers to regain confidence in travel. Moving next to slide 5 for a discussion on how we are positioned to weather this ongoing challenging environment. As we reflect upon the past year, I could not be more pleased with how far our organization has come and how well we have responded to market challenges. As we enter our second year with the current COVID crisis, we remain diligent in ensuring a solid liquidity position and laying the groundwork for profitable growth when travel resumes in a meaningful way. In turn, we ended the quarter with a cash position of $326 million.
Furthermore, due to actions we commenced over one year ago, we enter 2021 as a more efficient and leaner company and more geographically diverse. Importantly, the geographic diversification also brought about [Indecipherable] making us more resilient to both this crisis and potential future growth. As noted in the green chart in the top right and as mentioned earlier, Brazil's demand was particularly hard to the resurgence of the values and gross bookings declined each month through the quarter. By contrast, Mexico gross bookings increased each month throughout the period.
As part of our profit maximization strategy, we are taking our Revenue Toolkit to the next level. We have been optimizing our spend allocation to achieve the maximum marginal efficiency across our commercial levers, customer fees, installment, marketing and loyalty. This was the result of intense testing. These actions have allowed us to further diversify our traffic sources and to use our segmentation capabilities to drive loyalty among higher LTV customers. We have also made some changes internally to the revenue and marketing departments together, which allows for better combination and growing a higher ROI for these transactions.
On the sourcing side, we have been working diligently with our travel partners since the onset of the pandemic, which resulted in the offering of better package options for traveling Argentina, Brazil and the Andean countries. Recent times we were able to leverage destinations with higher take rates in the South American summer month of January and February. Moving next to product mix. Low demand and restrictions from international travel main market along with internal actions coupled with the acquisition of Best Day Mexico has enabled us to drive a higher portion of non-air sales in the mix, 68% in the first quarter.
Moving next to Slide 6 for the discussion on how we are strengthening our capabilites for the recovery. We remain focused on our long-term objectives. We have been expanding our reach but working with additional travel partners. The API connectivity with trip.com went live on April the 28th. As a reminder, trip.com is a leading provider of online travel and related services. We are making available to trip.com, our guided accommodation inventory in Latin America utilizing API, which will be available across its associated brand through its mobile app and internet web.
On the marketing front, we're encouraged as throughout the last quarters we have been seeing our marketing efficiency improve and have started to develop our brands to enhance the perception of trust and affordability. We have also taken steps to further enhance product bundling, which resulted in a 3 percentage points increase in package transactions vis-a-vis pre-pandemic levels of the first quarter of 2018. Key initiatives including improving the flow clients go through the bundling products by themselves either on our app or on the website and ensuring they find the best offers based on machine learning, predictive technology. The combination of the inventory from the different brands and the cross-selling of activities and [Indecipherable] are also contributing to drive more efficient bundling.
Now please turn to slide 7. We are well prepared and have the right ecosystem in place to capture the anticipated recovery in our main markets, starting with an update on where we are with the Best Day acquisition, a key strategic asset for us. So, we deem we are already capturing synergies in the B2C online segment as the migration to Despegar platform is complete. In turn, the revenue margins improved by 120 basis points, well ahead of our expectations disclosed in our third quarter of 2020earnings call In addition, the conversion rate increased by 30 basis points. Progress in the integration process is also observed in the 5.4 percentage point increase in gross margins of the B2C offline segment.
These good results are driven by the use of Despegar's leading technology integrated into Best Day. Thanks to this achievement, this past quarter, we presented the first time that [Indecipherable] overall B2C segment achieved profitability. In terms of the B2B segment, in the coming months, we will complete the migration of the different white labels with which Best Day has arrangements with. We started working on this project in the first quarter and we expect to conclude it in the early third quarter. Lastly, next quarter, we will start with the tech development in connections with in-destination activities, which will allow us to take this vertical to a decent level. We're excited about all the opportunities that Best Day has brought to us and we are already seeing the benefit on the two brands working together under Despegar's umbrella.
Now moving to financing and payment, where we're driving innovation in the Brazilian payment line. At Koin, we're expanding key financing solutions to other verticals beyond Decolar. Today, Koin is already available as a payment method, as a [Indecipherable] one of the leading and rapidly growing e-learning companies in Brazil. Additionally, we are also completing the integration of a company called [Indecipherable], a leading player in the B2C digital commerce. PIX, the Instant Payment developed by the Central Bank in Brazil is also now available at Decolar. With only two weeks since implementation, already 5% of transactions at Decolar were paid through PIX. In line with our focus on cost controls, PIX allows savings of 95% per transaction when compared to other payment methods.
I will now turn the call to Alberto to discuss the quarter's financial results.
Alberto Lopez Gaffney -- Chief Financial Officer
Thank you, Damian and thank you all for joining us today. Starting with slide 8, we turned in another quarter with a significantly high take rate of 14%, a highest level seen in 2016. When excluding extraordinary cancellations, the take rate reached 15.2%. This good performance was driven by a mix of internal and external factors. On the internal side, we are seeing the benefit of several strategic initiatives implemented to enhance sustainable profitability.
First, the position of Best Day, which has a better take rate. Second, the improvement introduced to our Revenue Toolkit as Damian just noted, is allowing us to take smarter decisions when it comes to capturing transactions. Third, we are leveraging our scale enhanced by the acquisition of Best Day and undertaking better negotiations with suppliers. And finally, we have also further enhanced our ability to bundle the products more efficiently as we just discussed.
Take rates are also benefited from a couple of external and temporary factors triggered by the pandemic. For example, we are seeing that in today's environment, many suppliers are faced with lower marketing budgets themselves and finding it more difficult and/or too costly to sell via performance marketing channels and prefer to offer the products and services directly through [Indecipherable] platform. Moving on to the topline, revenues were generally unchanged sequentially at $52 million, as a higher take rate offset the drop in gross bookings. In turn, customer cancellations due to COVID-19 were stable at slightly over $4 million.
Now, please turn to slide 9. As reported, first quarter '21 adjusted EBITDA has been relatively in line with those of the previous quarter. On excluding extraordinary charges, adjusted EBITDA was a loss of $14.1 million in first quarter '21 versus a loss of $9.4 million in fourth quarter '20 mainly due to higher fulfillment costs to enhance customer service levels in light of COVID-19 second wave in the region. One-time charges this past quarter were mostly in connection with extraordinary cancellations due to COVID-19. Despegar on a stand-alone basis reported an adjusted EBITDA loss of $15.5 million while Best Day & Koin contributed adjusted EBITDA loss of $4.5 million. These metrics still have not captured the full potential of the synergies from the integration of the recent acquired companies.
Additionally, and just a side point in the 20-F report, we have adopted our definition of adjusted EBITDA for the current circumstances and excluded restructuring charges and acquisition transaction costs. These results are based on this new definition. Now, please turn to slide 10. We closed the quarter with a strong cash position of nearly $326 million, a sequential decline of $25 million. At the same time, total net operational short-term obligations stood at $201 million, up 4% when compared to the prior quarter. We obtained a positive contribution of nearly $7 million in working capital as we continued collecting our receivables while we granted vouchers to customers whose trips were impacted by the second wave of COVID-19. At the same time, operating cash needs declined quarter-on-quarter by nearly $28 million to $7 million in the quarter.
This compares to use of cash from operating activities of $68 million in the same quarter last year. Now, please turn to slide 11 to wrap up the key takeaways of the quarter. Our greater geographic diversification contributed to smoothing top line volatility in the recovery trends and different seasonality across the region. Mexico and Colombia experienced the strongest recoveries in demand, driven by domestic leisure travel. By contrast, Brazil and Argentina saw the sharpest contractions as they faced a resurge of the virus. At the same time, our recent acquisitions together with enhancement to our Revenue Toolkit and a higher share of non-air revenues have allowed us to keep a significantly higher take rate for the second consecutive quarter and the highest in the past five years.
We have been successfully navigating this pandemic since its onset and believe that our strong cash position, streamlined operations, and our consistent focus on profitability position us well as we face the second wave of the pandemic. The integration of Best Day is also moving along nicely. The B2C migration to Despegar's platform is allowing us to meet our internal targets for key KPIs such as conversion rates and revenue margin in Best Day's segment. The first quarter was the first time that Best Day's B2C segment achieved profitability. Importantly, Despegar's business on a stand-alone basis remains breakeven when excluding one-time items and additional cost-related to COVID-19.
During the first quarter, we also completed the API connectivity with our travel partner trip.com. Finally, our marketing strategy that prioritizes unpaid channels to drive direct traffic continues to deliver good results. Now, please turn to slide 12 for final remarks. The past year has been one of opportunity, challenge and opportunity during which we have shown incredible resilience, creativity and focus as one team from navigating the pandemic to generating momentum as we execute on our strategic priorities. We know we have both headwinds and tailwinds this year, the balance and degree of which is unclear. As the year progresses, we hope to get more clarity around vaccine rollout, the scale and duration of economic recovery and demand for travel.
Despite uneven travel recovery trends in early 2021, impacted by resurgence of the virus, as we go through the year, we expect Mexico to continue on its recovery path and other countries to eventually follow. We know that in an environment that is changing as fast as this one, demand recovery will be choppy. Note that we were hit by the second wave one quarter later than the northern hemisphere, but due to seasonality, it should take us one more quarter to begin to recover as we are now entering the winter season. We would expect that by the third quarter, LatAm will be in a better position.
In summary, given the seasonality patterns and the late impact on the second wave of COVID-19, we are lagging the northern hemisphere recovery by along six months. Beyond seasonality, relative deployment of vaccination programs should be considered as we contrast Latin America with the Northern Hemisphere. Building on the work we began in 2020, we will continue to drive near-term cost and operational improvements that protect our bottom line while also taking actions to strengthen the company's long-term position for growth. Included in the ongoing integration of Best Day and further rollout or enhancements to our loyalty programs, which is also benefiting from a record level of co-branded credit cards. While some uncertainty remains in our markets, we have positioned the company well in terms of future potential growth.
This concludes our prepared remarks. We are ready to answer your questions. Operator, please open the line for questions.
Questions and Answers:
Operator
[Operator Instructions] The first question comes from Ed Yruma with KeyBanc Capital Markets. Please go ahead. Mr. Yruma, your line is open. Please go ahead with your question. Okay, moving on to the next questioner. The next question comes from Kevin Kopelman with Cowen & Company. Please go ahead.
Kevin Kopelman -- Cowen & Company -- Analyst
Great. Thanks a lot. So I wanted to ask about structural costs and the run rate and the key trends there. Basically, how do you see those playing out both for the second quarter? And then if you can also give us an update on how you would expect us to do develop once you're into the bigger part of the recovery over the next year plus? Thanks.
Alberto Lopez Gaffney -- Chief Financial Officer
Kevin, good morning. Alberto Lopez Gaffney, here, addressing your question. And so on structural costs, we continue with the same thesis that we have discussed in prior calls, that is that -- structural cost will begin -- will be constant indeed let's say $29 million, $30 million level, OK, until transactions are close to let's say 50%, in between 45% or 40% to 50% of 2019 levels, OK? Following that, the expectation is that overall structural costs should grow, OK, approximately to 50% to 60% of transaction growth, demonstrating the operational leverage of the company, OK?
Operator
Just one moment. There has been an interruption. Please standby. Ms. Nirenberg, if Mr. Alberto would like to continue please?
Alberto Lopez Gaffney -- Chief Financial Officer
Are you OK? Can you hear me?
Operator
Yes, please go ahead.
Alberto Lopez Gaffney -- Chief Financial Officer
Yes, sorry, I think we got disconnected and just switching to the backup plan. So what I would say is.
Operator
Yes.
Alberto Lopez Gaffney -- Chief Financial Officer
Structural cost in the $28 million, $30 million area, OK? Following that structural cost will grow, let's say, at around 50% of the transaction growth gets to the level of around let's say 40% to 50% of transactions -- of 2019 transaction levels. This assumption remains on hold assuming that salary increases, OK, in the regions we operate in dollar terms, OK and -- do not affect overall structural cost and as you know, that is a function of inflation rates in the country -- in the different countries and of course, in nominal FX rates, OK? But that is how we need to think about structural costs overall.
Kevin Kopelman -- Cowen & Company -- Analyst
Got it, that's very helpful. Thanks. And then, just a couple of other quick ones. So as you look to the second quarter here, and you're talking about gross bookings volumes being similar I believe Q-over-Q, is that -- how does that compare to what you're seeing in the overall markets? Is that in line with what you're expecting for the overall market or do you have some share gains built in or perhaps some share losses? Thanks.
Alberto Lopez Gaffney -- Chief Financial Officer
No. I think importantly, the strategy of the company since the kickoff of the pandemic, the fact has been that the company is running the company for profitability, for cash flow generation or cash preservation. But again, the limit is for the company, not to erode its market share, OK? So those are the two key guiding principles, OK? With regards to the actual performance in bookings, OK, you might have seen that in some of either the airlines or competitors are actually expecting a strong performance of Latin America by the summer, OK? But at the same time, we also believe that we need to be very prudent when it comes to providing visibility of what will be the sector performance.
The expectation is that second quarter is going to be not very dissimilar to -- not very different from Q1 but again after vaccination programs rollout and also as the South America in particular gets out of the fall, winter season, OK, compounding to, as I said before, with vaccination rollout, the expectation is that we should have a good summer season, OK? And as a comparison, and I'm not saying that we will have the same levels of travel activity, clearly [Indecipherable] can see us benefited from the two factors that I have just highlighted, OK? On one extreme we actually have the North American market.
Kevin Kopelman -- Cowen & Company -- Analyst
Thank you very much. That's very helpful.
Alberto Lopez Gaffney -- Chief Financial Officer
You're very welcome.
Operator
[Operator Instructions] And I see that we have a follow-up from Mr. Kopelman. Mr. Kopelman, please go ahead with your follow-up. You're welcome.
Kevin Kopelman -- Cowen & Company -- Analyst
Thank you very much. Yeah, could you just give us a quick update on any acquisition activity that you may be pursuing or the current environment there?
Damian Scokin -- Chief Executive Officer
Yes. Hi, Kevin, this is Damian. Usually we keep very active conversations with a lot of potential targets and partners. Obviously, we remain prudent in terms of prices and aggressiveness those who are willing to pay. But conversations keep intensifying and as we usually say when we have concrete yields, we will share them with you. As we have already said, inorganic acquisition is a key component of the company's strategy, but as we proved in the past, we remain very prudent on what that are going to validate that price.
Kevin Kopelman -- Cowen & Company -- Analyst
Thanks Damian.
Operator
[Operator Instructions] The next question comes from Brian Nowak with Morgan Stanley. Please go ahead.
Alex Wong -- Morgan Stanley -- Analyst
Hi, good morning. This is Alex Wong on for Brian. Thanks for taking the question. First one, Alberto, you talked about some of the internal and external factors driving the take rate improvement and in particular, was wondering if you can focus on the revenue yield management side, on the internal front? And then you talked about sort of supplier group relying more on Despegar given their own marketing challenges. So, I was wondering how sustainable do you think that is as we sort of progress through the recovery? The second question is, I think you called out some improvements in marketing ROI. I wonder if you could provide some color there whether that's mostly driven by a continued shift to mobile or are there other factors driving sort of better ROIs in the performance marketing channels?
Alberto Lopez Gaffney -- Chief Financial Officer
Okay. Sure, Alex. Good morning. Again when we talk about marketing clearly, one of the key on course of the company marketing expenditure strategy or markeing investment strategy is mobile and over mobile is a direct connection, OK? So what we are seeing is that the share of the direct connection continues to be very much in line with what the target that we set for the company back then -- more than the targets we have the pivot that we displayed back in 2019, which is close to 70% of the overall traffic of our website actually goes either through the app or direct or other unpaid channels, OK? So we continue with that idea. And we believe that even of as the app continues to solidify when it comes to the product offering and capabilities, I think we are in a strong position on that point. Going to your very first question on take rate, OK, clearly -- on take rate, I would like to maybe deconstruct the answer in at least two points.
The first one is, importantly today the priority is delivering an extraordinarily high take rate and that extraordinary high take rate of course has various factors that drive it but one factor that we should not lose sight is that the company is running the strategy, not co-market share gains, as it was in the past, but given the pandemic, in order to preserve cash and minimize losses, OK, the companies have higher price strategy in relative terms to the ones we used to have and that is a contributor to higher take-rate. Secondly, while we're seeing clearly, as you well pointed out, suppliers relying on Despegar to sell their inventory. I think we continue to solidify our relationships, OK? We have strengthened our sourcing power through the integration of Best Day activities and prior to that, integration of Viajes Falabella, OK? So clearly, I think we have a more robust set of sourcing partners that we are benefiting from and at the same time given the capillarity we have in the region and given how well we connect and how well we market our supplier's inventory, OK, we believe our suppliers are also benefited from us, OK?
With regards to revenue yield or revenue management, OK, I think as loyalty program continue to expand south, we already over 800,000 members in the region with limited marketing activity of these loyalty programs given the COVID-19 situation, OK? We have the four levers that work into the take rate function that are -- into the profitability function that are marketing expenditure, financing, pricing and now the loyalty program. So we believe that what, the way we are looking at the prior operations is that we are building in the context of COVID-19, a much better company, a much more solid company with core competencies that should pretty much bring to bear an earning power for the company once we get back to 2019 levels. But we are not seeing a leaner side, a higher pricing level for cash preservation purposes. We are not seeing that the current situation that this -- that the different factors at work in the current pandemia will not be there as they are in the future, i.e., we should be able, leaving pricing aside, to deliver a stronger take rate and reach the level we had in 2019 and '18.
Alex Wong -- Morgan Stanley -- Analyst
Great. Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
You're welcome.
Operator
[Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Damian Scokin for any closing remarks.
Damian Scokin -- Chief Executive Officer
All right. Thank you very much, operator. So, to close, wish to -- all of you remain healthy and safe. And thank you for joining us today, and we look forward to talking to you again with the nextearnings call Thank you very much.
Operator
[Operator Closing Remarks]
Duration: 43 minutes
Call participants:
Natalia Nirenberg -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Kevin Kopelman -- Cowen & Company -- Analyst
Alex Wong -- Morgan Stanley -- Analyst
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Despegar.com, Corp. (NYSE: DESP) Q1 2021 Earnings Call May 19, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar First Quarter 2021 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investors section of the company's website www.investor.despegar.com.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar First Quarter 2021 Earnings Call. Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Kevin Kopelman -- Cowen & Company -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegar.com, Corp. (NYSE: DESP) Q1 2021 Earnings Call May 19, 2021, 8:00 a.m.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Kevin Kopelman -- Cowen & Company -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegar.com, Corp. (NYSE: DESP) Q1 2021 Earnings Call May 19, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar First Quarter 2021 Earnings Call.
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Operator [Operator Closing Remarks] Duration: 43 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Kevin Kopelman -- Cowen & Company -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Despegar.com, Corp. (NYSE: DESP) Q1 2021 Earnings Call May 19, 2021, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar First Quarter 2021 Earnings Call.
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2021-05-18 00:00:00 UTC
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Pre-Market Earnings Report for May 19, 2021 : LOW, TGT, JD, TJX, ADI, VIPS, CAE, EXP, TARO, DAVA, DESP, ITMR
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-may-19-2021-%3A-low-tgt-jd-tjx-adi-vips-cae-exp-taro-dava
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The following companies are expected to report earnings prior to market open on 05/19/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Lowe's Companies, Inc. (LOW) is reporting for the quarter ending April 30, 2021. The building company's consensus earnings per share forecast from the 13 analysts that follow the stock is $2.58. This value represents a 45.76% increase compared to the same quarter last year. In the past year LOW has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 9.02%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for LOW is 19.39 vs. an industry ratio of 18.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Target Corporation (TGT) is reporting for the quarter ending April 30, 2021. The discount retail company's consensus earnings per share forecast from the 12 analysts that follow the stock is $2.20. This value represents a 272.88% increase compared to the same quarter last year. In the past year TGT has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 5.53%. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TGT is 23.78 vs. an industry ratio of 27.20.
JD.com, Inc. (JD) is reporting for the quarter ending March 31, 2021. The internet company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.23. This value represents a 9.52% increase compared to the same quarter last year. JD missed the consensus earnings per share in the 4th calendar quarter of 2020 by -52.63%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for JD is 59.31 vs. an industry ratio of 54.70, implying that they will have a higher earnings growth than their competitors in the same industry.
TJX Companies, Inc. (TJX) is reporting for the quarter ending April 30, 2021. The discount retail company's consensus earnings per share forecast from the 11 analysts that follow the stock is $0.29. This value represents a 139.19% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for TJX is 30.13 vs. an industry ratio of 27.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Analog Devices, Inc. (ADI) is reporting for the quarter ending April 30, 2021. The semiconductor company's consensus earnings per share forecast from the 11 analysts that follow the stock is $1.45. This value represents a 34.26% increase compared to the same quarter last year. In the past year ADI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 9.09%. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ADI is 24.64 vs. an industry ratio of 33.30.
Vipshop Holdings Limited (VIPS) is reporting for the quarter ending March 31, 2021. The internet services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.34. This value represents a 126.67% increase compared to the same quarter last year. VIPS missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -8.33%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for VIPS is 15.68 vs. an industry ratio of 10.20, implying that they will have a higher earnings growth than their competitors in the same industry.
CAE Inc (CAE) is reporting for the quarter ending March 31, 2021. The aerospace and defense company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.17. This value represents a 50.00% decrease compared to the same quarter last year. CAE missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -300%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CAE is 83.53 vs. an industry ratio of 29.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Eagle Materials Inc (EXP) is reporting for the quarter ending March 31, 2021. The building company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.31. This value represents a 2.34% increase compared to the same quarter last year. In the past year EXP has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 12.79%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for EXP is 22.47 vs. an industry ratio of 19.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Taro Pharmaceutical Industries Ltd. (TARO) is reporting for the quarter ending March 31, 2021. The drug company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.92. This value represents a 35.21% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TARO is 19.70 vs. an industry ratio of -2.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Endava plc (DAVA) is reporting for the quarter ending March 31, 2021. The information technology services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.25. This value represents a 24.24% decrease compared to the same quarter last year. The last two quarters DAVA had negative earnings surprises; the latest report they missed by -21.74%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DAVA is 103.45 vs. an industry ratio of 35.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Despegar.com, Corp. (DESP) is reporting for the quarter ending March 31, 2021. The transportation services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.34. This value represents a 54.55% decrease compared to the same quarter last year. DESP missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -5.13%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -16.92 vs. an industry ratio of 12.80.
Itamar Medical Ltd. (ITMR) is reporting for the quarter ending March 31, 2021. The medical information systems company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.20. This value represents a 33.33% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 10 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ITMR is -30.43 vs. an industry ratio of -8.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending March 31, 2021. DESP missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -5.13%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -16.92 vs. an industry ratio of 12.80.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending March 31, 2021. DESP missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -5.13%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -16.92 vs. an industry ratio of 12.80.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending March 31, 2021. DESP missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -5.13%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -16.92 vs. an industry ratio of 12.80.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending March 31, 2021. DESP missed the consensus earnings per share in the 3rd calendar quarter of 2020 by -5.13%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DESP is -16.92 vs. an industry ratio of 12.80.
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2021-05-17 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2021-05-17
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nan
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nan
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In my three stocks to avoid article last week, I predicted that Wendy's (NASDAQ: WEN), Celsius Holdings (NASDAQ: CELH), and Grayscale Digital Large Cap Fund (OTC: GDLC) would have a rough few days.
Wendy's rose nearly 3% for the week. Investors got a "major bag alert" after the burger chain posted better-than-expected quarterly results, boosting its guidance for the year. It looks as if breakfast is finally going to stick around after a few false starts, even if it's just 10% of the sales mix right now.
Celsius was the biggest winner of the three, with a 10% pop. The functional-beverage maker sparkled after posting a blowout financial report.
Finally, there was Grayscale Digital Large Cap Fund. The exchange-traded fund that owns stakes in five leading cryptocurrencies plunged 10% last week. It was a rough week for digital currencies, and it didn't help that Elon Musk turned heel on the fund's largest investment.
Those three stocks averaged a 1% gain for the week, with the biggest gainer and bigger sinker canceling each other out. The S&P 500 declined by 1.4% for the week, so I was wrong. Let's see if I can get back on track. Right now, I see Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week.
Image source: Getty Images.
1. Despegar.com
Earnings season starts winding down this week, and one name that could run into some turbulence is Depegar.com. The leading online travel portal specializing in Latin America has nearly tripled off last year's pandemic lows, but we're looking at a longer road back for Latin America's travel industry.
Most of Latin America is still well behind the U.S. in recovering from the COVID-19 crisis, and the economies haven't bounced back as quickly as we're seeing here. The biggest bearish point is that Despegar.com wasn't holding up so well before the pandemic. Revenue rose 1% in 2018, declining slightly in 2019. There were problems here even before a crisis that will set the region's recovery back at least a couple of years. Despegar is Spanish for taking off, but that's not something that the stock itself is likely to do right now.
2. Riot Blockchain
Bitcoin (CRYPTO: BTC) came under fire last week when Elon Musk announced that the leading crypto would no longer be acceptable as payment for his fast-selling electric vehicles. He called out Bitcoin for the vast amount of energy consumed in mining the digital currency. This was a zinger to Riot Blockchain in two important ways. As a leader in Bitcoin mining, it's going to be susceptible to any potential changes to the way the currency is created.
The other knock is that the price of Bitcoin also dipped on the news. Riot Blockchain is holding 1,771 Bitcoins that it has mined in its efforts. With Bitcoin trading at roughly $48,000 as of Saturday night, Riot Blockchain's tokens were valued at $85 million. It's a big step down for a stake that was worth as much as $115 million when Bitcoin peaked in mid-April. Riot Blockchain -- a company that has generated a mere $12 million in revenue over the past year -- can't justify its $2 billion market cap under this scenario.
3. Grayscale Large Cap Digital Fund
It's true that Grayscale Large Cap Digital Fund's premium did narrow last week. It began the week trading at a 16% markup, and that whittled down to 10% by Friday's close. The long-term bullish argument for crypto is solid, but keeping last week's biggest loser on the list again this week isn't about that necessarily.
Grayscale Large Cap Digital Fund owns five different promising cryptos, but more than 95% of its assets are in cold-stored Bitcoin and Ethereum (CRYPTO: ETH). Grayscale also manages single-asset trusts that only hold Bitcoin and Ethereum, and those two investments saw their net asset value discounts widen to 17% and 8%, respectively. Why pay a premium for exposure to crypto when the same company has two larger trusts trading at historically wide discounts?
If you're looking for safe stocks, you aren't likely to find them in Despegar.com, Riot Blockchain, and Grayscale Large Cap Digital Fund this week.
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Rick Munarriz owns shares of Ethereum. The Motley Fool owns shares of and recommends Bitcoin. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Right now, I see Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund as vulnerable investments in the near term. Despegar.com Earnings season starts winding down this week, and one name that could run into some turbulence is Depegar.com. The biggest bearish point is that Despegar.com wasn't holding up so well before the pandemic.
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Right now, I see Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund as vulnerable investments in the near term. Despegar.com Earnings season starts winding down this week, and one name that could run into some turbulence is Depegar.com. The biggest bearish point is that Despegar.com wasn't holding up so well before the pandemic.
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If you're looking for safe stocks, you aren't likely to find them in Despegar.com, Riot Blockchain, and Grayscale Large Cap Digital Fund this week. Right now, I see Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund as vulnerable investments in the near term. Despegar.com Earnings season starts winding down this week, and one name that could run into some turbulence is Depegar.com.
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Right now, I see Despegar.com (NYSE: DESP), Riot Blockchain (NASDAQ: RIOT), and Grayscale Digital Large Cap Fund as vulnerable investments in the near term. Despegar.com Earnings season starts winding down this week, and one name that could run into some turbulence is Depegar.com. The biggest bearish point is that Despegar.com wasn't holding up so well before the pandemic.
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2021-04-14 00:00:00 UTC
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What Kind Of Shareholders Own Despegar.com, Corp. (NYSE:DESP)?
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DESP
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https://www.nasdaq.com/articles/what-kind-of-shareholders-own-despegar.com-corp.-nyse%3Adesp-2021-04-14
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nan
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nan
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The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Despegar.com has a market capitalization of US$918m, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Despegar.com.
NYSE:DESP Ownership Breakdown April 14th 2021
What Does The Institutional Ownership Tell Us About Despegar.com?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that Despegar.com does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Despegar.com's earnings history below. Of course, the future is what really matters.
NYSE:DESP Earnings and Revenue Growth April 14th 2021
It looks like hedge funds own 13% of Despegar.com shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Expedia Group, Inc. is currently the company's largest shareholder with 14% of shares outstanding. For context, the second largest shareholder holds about 13% of the shares outstanding, followed by an ownership of 6.1% by the third-largest shareholder.
We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Despegar.com
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to learn that insiders own shares in Despegar.com, Corp.. In their own names, insiders own US$12m worth of stock in the US$918m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public holds a 27% stake in Despegar.com. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Public Company Ownership
We can see that public companies hold 14% of the Despegar.com shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Despegar.com better, we need to consider many other factors. For example, we've discovered 2 warning signs for Despegar.com that you should be aware of before investing here.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:DESP Earnings and Revenue Growth April 14th 2021 It looks like hedge funds own 13% of Despegar.com shares. The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Despegar.com has a market capitalization of US$918m, so we would expect some institutional investors to have noticed the stock.
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NYSE:DESP Ownership Breakdown April 14th 2021 What Does The Institutional Ownership Tell Us About Despegar.com? General Public Ownership The general public holds a 27% stake in Despegar.com. The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company.
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Public Company Ownership We can see that public companies hold 14% of the Despegar.com shares on issue. The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Despegar.com has a market capitalization of US$918m, so we would expect some institutional investors to have noticed the stock.
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The big shareholder groups in Despegar.com, Corp. (NYSE:DESP) have power over the company. Despegar.com has a market capitalization of US$918m, so we would expect some institutional investors to have noticed the stock. We can zoom in on the different ownership groups, to learn more about Despegar.com.
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2021-03-18 00:00:00 UTC
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Should Investors Buy These Top Entertainment Stocks?
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DESP
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https://www.nasdaq.com/articles/should-investors-buy-these-top-entertainment-stocks-2021-03-18
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nan
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nan
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Do You Have These Top Entertainment Stocks On Your Watchlist?
You can’t deny that it has been a tough year for all of us, to a certain extent. With the world still caught amid a pandemic, most would want to escape reality through entertainment. This could explain why investors continue to flock towards entertainment stocks of all kinds.
On one hand, we saw the rise of top streaming stocks such as Roku (NASDAQ: ROKU) and FuboTV (NYSE: FUBO). Over the past year, both stocks have more than tripled in value. This would be thanks to growing cord-cutting trends that were accelerated by the pandemic. On the other hand, in-person entertainment companies continue to gain momentum right now as well. Take United Airlines (NASDAQ: UAL) and Penn National Gaming (NASDAQ: PENN) for example. Both companies’ shares are looking at year-to-date gains of over 50%. Given all of the positive vaccine news lately, I can understand why.
All this paired with the latest round of stimulus checks could set up a perfect storm for the entertainment industry overall. As such, new and old investors alike would be looking for the best entertainment stocks to invest in now. After all, people will likely continue to spend their discretionary dollars on means of entertainment. Could this mean long-term growth potential for these four entertainment stocks in focus now?
Entertainment Stocks To Watch This Week
Lizhi Inc. (NASDAQ: LIZI)
Yalla Group Limited (NYSE: YALA)
Despegar.com Corporation (NYSE: DESP)
Discovery Communications Inc. (NASDAQ: DISCA)
Lizhi Inc.
For starters, we will be looking at Chinese entertainment company, Lizhi. The company operates via a cross-border audio ecosystem. The likes of which are made up of audio-based social networks, podcasts portfolios, and audio communities. Through its online platform, Lizhi reported catering to over 58 million monthly active users in its recent quarter fiscal. If anything, Lizhi’s audio-focused social media offerings would set it apart amidst the competition. In fact, LIZI stock soared by over 29% on Tuesday thanks to a research analyst who shares a similar sentiment.
Source: TD Ameritrade TOS
Diving right into it, Citron Research editor Andrew Left set a price target of $30 a share for LIZI stock. This represents a premium of 119% over its closing price of $13.65 yesterday. In detail, Left suggests that Lizhi is a “cross-section of Clubhouse, Roblox (NYSE: RBLX), and now dating.” The reason for this is that Lizhi’s Tiya app launched a new ad regarding the company’s expansion into online dating.
Not to mention, Lizhi is also making moves in the automotive industry. The company revealed earlier this month that it is partnering with ECARX, a leading automotive intelligence tech company. With Lizhi improving its existing offerings while expanding its portfolio towards booming industries, could LIZI stock be worth watching now? You tell me.
Read More
Top Stocks To Invest In Right Now? 4 Tech Stocks To Watch
CrowdStrike Holdings (CRWD) Vs Cloudflare (NET): Which Is A Better Cybersecurity Stock To Buy?
Yala Group Limited
Similar to our previous entry, Yalla is a social networking and entertainment platform. The company focuses on providing customers from the Middle East-North Africa (MENA) community with superior online social experiences. Through its flagship mobile app of the same name, users can spend time chatting in virtual chat rooms. Additionally, users can also play a variety of board games together on the app via the company’s Yalla Ludo platform. More importantly, YALA stock is looking at gains of 13% since Yalla announced its latest financial results on Monday.
Source: TD Ameritrade TOS
In it, the company posted a whopping 150% year-over-year jump in total revenue. Moreover, Yalla saw massive year-over-year surges of 295% in average monthly active users and 624% in paying users. Given these stellar figures, I can see why investors were keen to flock to YALA stock this week. Similarly, Wall Street appears to be bullish on the MENA-focused social networking company as well.
Namely, Oppenheimer analyst Bo Pei reiterated an outperform rating on the stock with a price target of $30. Overall, Pei cites Yalla Ludo’s strong performance throughout the quarter as a key growth factor for the company. With Yalla as the leading social network company in the MENA region, will you be watching YALA stock?
[Read More] Looking For Consumer Stocks To Buy This Week? 4 Names To Watch
Despegar.com Corporation
Next, we have leading Latin American online travel company Despegar. In brief, the company operates across 20 countries, providing a comprehensive suite of travel products and services. Furthermore, the company’s one-stop marketplace allows Despegar’s over 17 million users to find, compare, and plan their vacations. Through Despegar’s websites and mobile apps, customers have access to over 300 airlines and more than 520,000 accommodation options across Latin America. Some might consider it the Latin American equivalent of Tripadvisor (NASDAQ: TRIP). Like most of its peers in the travel industry, DESP stock is on the uptrend. Over the past year, the company’s shares have gained by over 140%. In particular, DESP stock surged by over 9% during intraday trading yesterday on account of an analyst upgrade.
Source: TD Ameritrade TOS
To explain, KeyBanc Capital Markets raised DESP stock to an Overweight rating with a price target of $23. This would mark an upside of 35% given DESP stock’s value as of yesterday’s closing bell. Analyst Edward Yruma cites “strong secular tailwinds” and promising signs from the company’s earnings as a reason for this upgrade. Ideally, Despegar would be in a good position to benefit from reopening travel markets. For investors looking towards more affordable reopening plays, DESP stock could be a go-to. Would you agree?
[Read More] Best Fintech Stocks to Buy This Week? 4 Names to Know
Discovery Communications Inc.
Discovery Inc. is an upcoming name in the streaming industry right now. For the uninitiated, Discovery is a mass media company that boasts a massive portfolio of unscripted content. This ranges from wildlife documentaries to lifestyle improvement programming. For one thing, Discovery would be bringing its classic cable TV programming towards the streaming medium. This does set it apart from conventional streaming services because of its unique content.
Source: TD Ameritrade TOS
Notably, the company’s Discovery Plus platform could appeal to older audiences more compared to most mainstream players in the industry. Could this make DISCA stock worth investing in now? Evidently, investors appear to think so seeing as DISCA stock continues soaring to new heights gaining by over 140% year-to-date.
Despite only launching in January, Discovery Plus has picked up over 11 million paying subscribers as of last month. Nonetheless, the company projected that this figure would cross the 12 million subscriber mark by the end of February. Generally, Discovery’s shift towards the streaming market is a timely one. In this case, I could see consumers jumping on its streaming service in the wake of cable TV declines. Moving forward, the company also noted that it would be focusing on bolstering Discovery Plus’ offerings. It would have the means to do so, considering its $2.38 billion of free cash flow from fiscal 2020 operations. Could this make DISCA stock worth adding to your watchlist now? I’ll let you decide.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: TD Ameritrade TOS To explain, KeyBanc Capital Markets raised DESP stock to an Overweight rating with a price target of $23. Entertainment Stocks To Watch This Week Lizhi Inc. (NASDAQ: LIZI) Yalla Group Limited (NYSE: YALA) Despegar.com Corporation (NYSE: DESP) Discovery Communications Inc. (NASDAQ: DISCA) Lizhi Inc. For starters, we will be looking at Chinese entertainment company, Lizhi. 4 Names To Watch Despegar.com Corporation Next, we have leading Latin American online travel company Despegar.
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Entertainment Stocks To Watch This Week Lizhi Inc. (NASDAQ: LIZI) Yalla Group Limited (NYSE: YALA) Despegar.com Corporation (NYSE: DESP) Discovery Communications Inc. (NASDAQ: DISCA) Lizhi Inc. For starters, we will be looking at Chinese entertainment company, Lizhi. 4 Names To Watch Despegar.com Corporation Next, we have leading Latin American online travel company Despegar. Source: TD Ameritrade TOS To explain, KeyBanc Capital Markets raised DESP stock to an Overweight rating with a price target of $23.
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Entertainment Stocks To Watch This Week Lizhi Inc. (NASDAQ: LIZI) Yalla Group Limited (NYSE: YALA) Despegar.com Corporation (NYSE: DESP) Discovery Communications Inc. (NASDAQ: DISCA) Lizhi Inc. For starters, we will be looking at Chinese entertainment company, Lizhi. 4 Names To Watch Despegar.com Corporation Next, we have leading Latin American online travel company Despegar. Furthermore, the company’s one-stop marketplace allows Despegar’s over 17 million users to find, compare, and plan their vacations.
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Entertainment Stocks To Watch This Week Lizhi Inc. (NASDAQ: LIZI) Yalla Group Limited (NYSE: YALA) Despegar.com Corporation (NYSE: DESP) Discovery Communications Inc. (NASDAQ: DISCA) Lizhi Inc. For starters, we will be looking at Chinese entertainment company, Lizhi. 4 Names To Watch Despegar.com Corporation Next, we have leading Latin American online travel company Despegar. Furthermore, the company’s one-stop marketplace allows Despegar’s over 17 million users to find, compare, and plan their vacations.
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2020-12-08 00:00:00 UTC
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Why Despegar Soared 62% in November
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DESP
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https://www.nasdaq.com/articles/why-despegar-soared-62-in-november-2020-12-08
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nan
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nan
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Shares of Despegar (NYSE: DESP) soared 62% in November, according to data from S&P Global Market Intelligence. That move sent the online travel company's stock from $6.80 per share to $11.04 during the month.
For context, Despegar shares were still down 18% for the year through November but have climbed back from being down as much as 63% for the year in May.
What happened
Despegar reported third-quarter earnings in November that showed an enormous but not surprising decline in business activity on a year-over-year basis. Gross bookings -- the total amount of travel spent on the platform -- were down 86% year over year but more than tripled sequentially from the second quarter.
The company appears to have plenty of cash to weather the rest of this storm. As of the end of September, Despegar had $375 million of cash on the books.
Perhaps more importantly, positive vaccine news out of Pfizer and BioNTech as well as Moderna about the safety and efficacy of their COVID-19 vaccines also drove up the stocks of several travel-related businesses.
Image source: Getty Images.
So what
Despegar is the leader of the online travel business in Latin America. COVID-19 has ravaged the global travel market this year, and Despegar has not been an exception.
But travel conditions have clearly improved from the low earlier this year. And the positive vaccine developments we heard in November should help travel-related businesses continue their recoveries next year.
The company's negative cash flow was only about $25 million in the quarter, so the $375 million of cash on hand appears to be enough to help the business reach the eventual recovery.
Now what
As an online travel business reliant on travel bookings, Despegar has been in the eye of the COVID-19 storm this year. But things may be looking up. Investors should expect the company to see further improvements to the extent these vaccines are effective against the coronavirus.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Despegar (NYSE: DESP) soared 62% in November, according to data from S&P Global Market Intelligence. What happened Despegar reported third-quarter earnings in November that showed an enormous but not surprising decline in business activity on a year-over-year basis. For context, Despegar shares were still down 18% for the year through November but have climbed back from being down as much as 63% for the year in May.
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Now what As an online travel business reliant on travel bookings, Despegar has been in the eye of the COVID-19 storm this year. Shares of Despegar (NYSE: DESP) soared 62% in November, according to data from S&P Global Market Intelligence. For context, Despegar shares were still down 18% for the year through November but have climbed back from being down as much as 63% for the year in May.
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Now what As an online travel business reliant on travel bookings, Despegar has been in the eye of the COVID-19 storm this year. Shares of Despegar (NYSE: DESP) soared 62% in November, according to data from S&P Global Market Intelligence. For context, Despegar shares were still down 18% for the year through November but have climbed back from being down as much as 63% for the year in May.
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For context, Despegar shares were still down 18% for the year through November but have climbed back from being down as much as 63% for the year in May. COVID-19 has ravaged the global travel market this year, and Despegar has not been an exception. Now what As an online travel business reliant on travel bookings, Despegar has been in the eye of the COVID-19 storm this year.
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9bf99c4d-3d2c-40dc-81a8-4d1e517717dd
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728649.0
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2020-11-23 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Ashford Hospitality, Spring Bank Pharma, Ideanomics, China Online Education
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DESP
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-ashford-hospitality-spring-bank-pharma-ideanomics-china
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nan
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nan
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street's main indexes were set to rise on Monday as hopes that the first COVID-19 vaccine could be available within weeks renewed bets of a swift economic recovery next year. .N
At 9:04 am ET, Dow e-minis 1YMc1 were up 0.45% at 29,344. S&P 500 e-minis ESc1 were up 0.47% at 3,571, while Nasdaq 100 e-minis NQc1 were up 0.34% at 11,946.75. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Front Yard Residential Corp RESI.N, up 21.7% ** StoneMor Partners LP STON.N, up 19.5% ** China Online Education Corp COE.N, up 17.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Ashford Hospitality Trust Inc AHT.N, down 23.5% ** Phoenix Tree Holdings Ltd DNK.N, down 7.2% ** Despegar.com Corp DESP.N, down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** East Stone Acquisition Corp ESSCW.O, up 53.9% ** Apex Technology Acquisition Corp APXTW.O, up 41.9% ** IMAC Holdings Inc IMACW.O, up 40.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Spring Bank Pharmaceuticals Inc FSTX.O, down 51.4% ** PolarityTE Inc PTE.O, down 43.2% ** Bellerophon Therapeutics Inc BLPH.O, down 24.8% ** AstraZeneca PLC AZN.O: down 1.9% premarket BUZZ-Street View: COVID-19 vaccine data 'good enough' ** Leju Holdings Limited LEJU.N: up 2.3% premarket BUZZ-Rises on higher Q3 revenue, profit ** Tesla Inc TSLA.O: up 3.0% premarket BUZZ-Wedbush raises PT on rising global electric vehicle demand ** Regeneron Pharmaceuticals Inc REGN.O: up 3.3% premarket BUZZ-Up after FDA grants emergency use authorization to COVID-19 therapy ** Baozun Inc BZUN.O: down 3.6% premarket BUZZ-Falls as Q3 rev misses estimates ** Foot Locker Inc FL.N: down 1.3% premarket BUZZ-Piper Sandler cuts to 'underweight' on COVID-19 pressure ** Roku Inc ROKU.O: up 2.3% premarket BUZZ-Gains after Needham raises PT on advertising strength ** Huami Corp HMI.N: up 1.8% premarket BUZZ-Rises on higher Q3 revenue ** Southwest Airlines Co LUV.N: up 1.4% premarket ** Alaska Air Group Inc ALK.N: up 0.6% premarket ** Delta Air Lines Inc DAL.N: up 1.6% premarket ** American Airlines Group Inc AAL.O: up 1.8% premarket ** Spirit Airlines Inc SAVE.N: up 1.3% premarket ** Royal Caribbean Cruises Ltd RCL.N: up 1.5% premarket ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.8% premarket ** Carnival Corp CCL.N: up 2.0% premarket BUZZ-Airlines, cruise operators gain on new vaccine headway ** Sonoma Pharmaceuticals Inc SNOA.O: up 10.1% premarket BUZZ-Gains on strong Q2 results ** Goldman Sachs Group Inc GS.N: up 1.3% premarket ** JPMorgan Chase & Co JPM.N: up 1.2% premarket ** Morgan Stanley MS.N: up 1.4% premarket ** Bank of America Corp BAC.N: up 1.1% premarket ** Wells Fargo & Co WFC.N: up 1.3% premarket ** Citigroup Inc C.N: up 1.4% premarket BUZZ-U.S. big banks rise on 'vaccine for the world' data ** FuboTV Inc FUBO.N: up 4.0% premarket BUZZ-Rises after brokerage raises PT on connected TV upside ** Altice USA Inc ATUS.N: up 7.3% premarket BUZZ-Jumps on $2.5 bln buyback ** Apex Technology Acquisition Corp APXT.O: up 5.2% premarket BUZZ-Rises on $2 bln merger ** HP Inc HPQ.N: up 0.6% premarket BUZZ-Up as Evercore raises PT in run-up to Q4 results ** Niu Technologies NIU.O: down 7.5% premarket BUZZ-Falls on Q3 revenue miss, dour outlook ** Ideanomics Inc IDEX.O: up 24.0% premarket BUZZ-Raises stake in e-tractor developer, shares soar ** China Online Education Group COE.N: up 17.0% premarket BUZZ-Rises on Q3 results beat ** Warner Music Group Corp WMG.O: up 1.5% premarket BUZZ-Rises on strong Q4 results
(Compiled by Amruta Khandekar)
((Amruta.Khandekar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Front Yard Residential Corp RESI.N, up 21.7% ** StoneMor Partners LP STON.N, up 19.5% ** China Online Education Corp COE.N, up 17.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Ashford Hospitality Trust Inc AHT.N, down 23.5% ** Phoenix Tree Holdings Ltd DNK.N, down 7.2% ** Despegar.com Corp DESP.N, down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** East Stone Acquisition Corp ESSCW.O, up 53.9% ** Apex Technology Acquisition Corp APXTW.O, up 41.9% ** IMAC Holdings Inc IMACW.O, up 40.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Spring Bank Pharmaceuticals Inc FSTX.O, down 51.4% ** PolarityTE Inc PTE.O, down 43.2% ** Bellerophon Therapeutics Inc BLPH.O, down 24.8% ** AstraZeneca PLC AZN.O: down 1.9% premarket BUZZ-Street View: COVID-19 vaccine data 'good enough' ** Leju Holdings Limited LEJU.N: up 2.3% premarket BUZZ-Rises on higher Q3 revenue, profit ** Tesla Inc TSLA.O: up 3.0% premarket BUZZ-Wedbush raises PT on rising global electric vehicle demand ** Regeneron Pharmaceuticals Inc REGN.O: up 3.3% premarket BUZZ-Up after FDA grants emergency use authorization to COVID-19 therapy ** Baozun Inc BZUN.O: down 3.6% premarket BUZZ-Falls as Q3 rev misses estimates ** Foot Locker Inc FL.N: down 1.3% premarket BUZZ-Piper Sandler cuts to 'underweight' on COVID-19 pressure ** Roku Inc ROKU.O: up 2.3% premarket BUZZ-Gains after Needham raises PT on advertising strength ** Huami Corp HMI.N: up 1.8% premarket BUZZ-Rises on higher Q3 revenue ** Southwest Airlines Co LUV.N: up 1.4% premarket ** Alaska Air Group Inc ALK.N: up 0.6% premarket ** Delta Air Lines Inc DAL.N: up 1.6% premarket ** American Airlines Group Inc AAL.O: up 1.8% premarket ** Spirit Airlines Inc SAVE.N: up 1.3% premarket ** Royal Caribbean Cruises Ltd RCL.N: up 1.5% premarket ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.8% premarket ** Carnival Corp CCL.N: up 2.0% premarket BUZZ-Airlines, cruise operators gain on new vaccine headway ** Sonoma Pharmaceuticals Inc SNOA.O: up 10.1% premarket BUZZ-Gains on strong Q2 results ** Goldman Sachs Group Inc GS.N: up 1.3% premarket ** JPMorgan Chase & Co JPM.N: up 1.2% premarket ** Morgan Stanley MS.N: up 1.4% premarket ** Bank of America Corp BAC.N: up 1.1% premarket ** Wells Fargo & Co WFC.N: up 1.3% premarket ** Citigroup Inc C.N: up 1.4% premarket BUZZ-U.S. big banks rise on 'vaccine for the world' data ** FuboTV Inc FUBO.N: up 4.0% premarket BUZZ-Rises after brokerage raises PT on connected TV upside ** Altice USA Inc ATUS.N: up 7.3% premarket BUZZ-Jumps on $2.5 bln buyback ** Apex Technology Acquisition Corp APXT.O: up 5.2% premarket BUZZ-Rises on $2 bln merger ** HP Inc HPQ.N: up 0.6% premarket BUZZ-Up as Evercore raises PT in run-up to Q4 results ** Niu Technologies NIU.O: down 7.5% premarket BUZZ-Falls on Q3 revenue miss, dour outlook ** Ideanomics Inc IDEX.O: up 24.0% premarket BUZZ-Raises stake in e-tractor developer, shares soar ** China Online Education Group COE.N: up 17.0% premarket BUZZ-Rises on Q3 results beat ** Warner Music Group Corp WMG.O: up 1.5% premarket BUZZ-Rises on strong Q4 results (Compiled by Amruta Khandekar) ((Amruta.Khandekar@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to rise on Monday as hopes that the first COVID-19 vaccine could be available within weeks renewed bets of a swift economic recovery next year. .N At 9:04 am ET, Dow e-minis 1YMc1 were up 0.45% at 29,344.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Front Yard Residential Corp RESI.N, up 21.7% ** StoneMor Partners LP STON.N, up 19.5% ** China Online Education Corp COE.N, up 17.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Ashford Hospitality Trust Inc AHT.N, down 23.5% ** Phoenix Tree Holdings Ltd DNK.N, down 7.2% ** Despegar.com Corp DESP.N, down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** East Stone Acquisition Corp ESSCW.O, up 53.9% ** Apex Technology Acquisition Corp APXTW.O, up 41.9% ** IMAC Holdings Inc IMACW.O, up 40.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Spring Bank Pharmaceuticals Inc FSTX.O, down 51.4% ** PolarityTE Inc PTE.O, down 43.2% ** Bellerophon Therapeutics Inc BLPH.O, down 24.8% ** AstraZeneca PLC AZN.O: down 1.9% premarket BUZZ-Street View: COVID-19 vaccine data 'good enough' ** Leju Holdings Limited LEJU.N: up 2.3% premarket BUZZ-Rises on higher Q3 revenue, profit ** Tesla Inc TSLA.O: up 3.0% premarket BUZZ-Wedbush raises PT on rising global electric vehicle demand ** Regeneron Pharmaceuticals Inc REGN.O: up 3.3% premarket BUZZ-Up after FDA grants emergency use authorization to COVID-19 therapy ** Baozun Inc BZUN.O: down 3.6% premarket BUZZ-Falls as Q3 rev misses estimates ** Foot Locker Inc FL.N: down 1.3% premarket BUZZ-Piper Sandler cuts to 'underweight' on COVID-19 pressure ** Roku Inc ROKU.O: up 2.3% premarket BUZZ-Gains after Needham raises PT on advertising strength ** Huami Corp HMI.N: up 1.8% premarket BUZZ-Rises on higher Q3 revenue ** Southwest Airlines Co LUV.N: up 1.4% premarket ** Alaska Air Group Inc ALK.N: up 0.6% premarket ** Delta Air Lines Inc DAL.N: up 1.6% premarket ** American Airlines Group Inc AAL.O: up 1.8% premarket ** Spirit Airlines Inc SAVE.N: up 1.3% premarket ** Royal Caribbean Cruises Ltd RCL.N: up 1.5% premarket ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.8% premarket ** Carnival Corp CCL.N: up 2.0% premarket BUZZ-Airlines, cruise operators gain on new vaccine headway ** Sonoma Pharmaceuticals Inc SNOA.O: up 10.1% premarket BUZZ-Gains on strong Q2 results ** Goldman Sachs Group Inc GS.N: up 1.3% premarket ** JPMorgan Chase & Co JPM.N: up 1.2% premarket ** Morgan Stanley MS.N: up 1.4% premarket ** Bank of America Corp BAC.N: up 1.1% premarket ** Wells Fargo & Co WFC.N: up 1.3% premarket ** Citigroup Inc C.N: up 1.4% premarket BUZZ-U.S. big banks rise on 'vaccine for the world' data ** FuboTV Inc FUBO.N: up 4.0% premarket BUZZ-Rises after brokerage raises PT on connected TV upside ** Altice USA Inc ATUS.N: up 7.3% premarket BUZZ-Jumps on $2.5 bln buyback ** Apex Technology Acquisition Corp APXT.O: up 5.2% premarket BUZZ-Rises on $2 bln merger ** HP Inc HPQ.N: up 0.6% premarket BUZZ-Up as Evercore raises PT in run-up to Q4 results ** Niu Technologies NIU.O: down 7.5% premarket BUZZ-Falls on Q3 revenue miss, dour outlook ** Ideanomics Inc IDEX.O: up 24.0% premarket BUZZ-Raises stake in e-tractor developer, shares soar ** China Online Education Group COE.N: up 17.0% premarket BUZZ-Rises on Q3 results beat ** Warner Music Group Corp WMG.O: up 1.5% premarket BUZZ-Rises on strong Q4 results (Compiled by Amruta Khandekar) ((Amruta.Khandekar@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to rise on Monday as hopes that the first COVID-19 vaccine could be available within weeks renewed bets of a swift economic recovery next year. S&P 500 e-minis ESc1 were up 0.47% at 3,571, while Nasdaq 100 e-minis NQc1 were up 0.34% at 11,946.75.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Front Yard Residential Corp RESI.N, up 21.7% ** StoneMor Partners LP STON.N, up 19.5% ** China Online Education Corp COE.N, up 17.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Ashford Hospitality Trust Inc AHT.N, down 23.5% ** Phoenix Tree Holdings Ltd DNK.N, down 7.2% ** Despegar.com Corp DESP.N, down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** East Stone Acquisition Corp ESSCW.O, up 53.9% ** Apex Technology Acquisition Corp APXTW.O, up 41.9% ** IMAC Holdings Inc IMACW.O, up 40.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Spring Bank Pharmaceuticals Inc FSTX.O, down 51.4% ** PolarityTE Inc PTE.O, down 43.2% ** Bellerophon Therapeutics Inc BLPH.O, down 24.8% ** AstraZeneca PLC AZN.O: down 1.9% premarket BUZZ-Street View: COVID-19 vaccine data 'good enough' ** Leju Holdings Limited LEJU.N: up 2.3% premarket BUZZ-Rises on higher Q3 revenue, profit ** Tesla Inc TSLA.O: up 3.0% premarket BUZZ-Wedbush raises PT on rising global electric vehicle demand ** Regeneron Pharmaceuticals Inc REGN.O: up 3.3% premarket BUZZ-Up after FDA grants emergency use authorization to COVID-19 therapy ** Baozun Inc BZUN.O: down 3.6% premarket BUZZ-Falls as Q3 rev misses estimates ** Foot Locker Inc FL.N: down 1.3% premarket BUZZ-Piper Sandler cuts to 'underweight' on COVID-19 pressure ** Roku Inc ROKU.O: up 2.3% premarket BUZZ-Gains after Needham raises PT on advertising strength ** Huami Corp HMI.N: up 1.8% premarket BUZZ-Rises on higher Q3 revenue ** Southwest Airlines Co LUV.N: up 1.4% premarket ** Alaska Air Group Inc ALK.N: up 0.6% premarket ** Delta Air Lines Inc DAL.N: up 1.6% premarket ** American Airlines Group Inc AAL.O: up 1.8% premarket ** Spirit Airlines Inc SAVE.N: up 1.3% premarket ** Royal Caribbean Cruises Ltd RCL.N: up 1.5% premarket ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.8% premarket ** Carnival Corp CCL.N: up 2.0% premarket BUZZ-Airlines, cruise operators gain on new vaccine headway ** Sonoma Pharmaceuticals Inc SNOA.O: up 10.1% premarket BUZZ-Gains on strong Q2 results ** Goldman Sachs Group Inc GS.N: up 1.3% premarket ** JPMorgan Chase & Co JPM.N: up 1.2% premarket ** Morgan Stanley MS.N: up 1.4% premarket ** Bank of America Corp BAC.N: up 1.1% premarket ** Wells Fargo & Co WFC.N: up 1.3% premarket ** Citigroup Inc C.N: up 1.4% premarket BUZZ-U.S. big banks rise on 'vaccine for the world' data ** FuboTV Inc FUBO.N: up 4.0% premarket BUZZ-Rises after brokerage raises PT on connected TV upside ** Altice USA Inc ATUS.N: up 7.3% premarket BUZZ-Jumps on $2.5 bln buyback ** Apex Technology Acquisition Corp APXT.O: up 5.2% premarket BUZZ-Rises on $2 bln merger ** HP Inc HPQ.N: up 0.6% premarket BUZZ-Up as Evercore raises PT in run-up to Q4 results ** Niu Technologies NIU.O: down 7.5% premarket BUZZ-Falls on Q3 revenue miss, dour outlook ** Ideanomics Inc IDEX.O: up 24.0% premarket BUZZ-Raises stake in e-tractor developer, shares soar ** China Online Education Group COE.N: up 17.0% premarket BUZZ-Rises on Q3 results beat ** Warner Music Group Corp WMG.O: up 1.5% premarket BUZZ-Rises on strong Q4 results (Compiled by Amruta Khandekar) ((Amruta.Khandekar@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to rise on Monday as hopes that the first COVID-19 vaccine could be available within weeks renewed bets of a swift economic recovery next year. S&P 500 e-minis ESc1 were up 0.47% at 3,571, while Nasdaq 100 e-minis NQc1 were up 0.34% at 11,946.75.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Front Yard Residential Corp RESI.N, up 21.7% ** StoneMor Partners LP STON.N, up 19.5% ** China Online Education Corp COE.N, up 17.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Ashford Hospitality Trust Inc AHT.N, down 23.5% ** Phoenix Tree Holdings Ltd DNK.N, down 7.2% ** Despegar.com Corp DESP.N, down 6.5% The top three Nasdaq percentage gainers premarket .PRPG.O: ** East Stone Acquisition Corp ESSCW.O, up 53.9% ** Apex Technology Acquisition Corp APXTW.O, up 41.9% ** IMAC Holdings Inc IMACW.O, up 40.7% The top three Nasdaq percentage losers premarket .PRPL.O: ** Spring Bank Pharmaceuticals Inc FSTX.O, down 51.4% ** PolarityTE Inc PTE.O, down 43.2% ** Bellerophon Therapeutics Inc BLPH.O, down 24.8% ** AstraZeneca PLC AZN.O: down 1.9% premarket BUZZ-Street View: COVID-19 vaccine data 'good enough' ** Leju Holdings Limited LEJU.N: up 2.3% premarket BUZZ-Rises on higher Q3 revenue, profit ** Tesla Inc TSLA.O: up 3.0% premarket BUZZ-Wedbush raises PT on rising global electric vehicle demand ** Regeneron Pharmaceuticals Inc REGN.O: up 3.3% premarket BUZZ-Up after FDA grants emergency use authorization to COVID-19 therapy ** Baozun Inc BZUN.O: down 3.6% premarket BUZZ-Falls as Q3 rev misses estimates ** Foot Locker Inc FL.N: down 1.3% premarket BUZZ-Piper Sandler cuts to 'underweight' on COVID-19 pressure ** Roku Inc ROKU.O: up 2.3% premarket BUZZ-Gains after Needham raises PT on advertising strength ** Huami Corp HMI.N: up 1.8% premarket BUZZ-Rises on higher Q3 revenue ** Southwest Airlines Co LUV.N: up 1.4% premarket ** Alaska Air Group Inc ALK.N: up 0.6% premarket ** Delta Air Lines Inc DAL.N: up 1.6% premarket ** American Airlines Group Inc AAL.O: up 1.8% premarket ** Spirit Airlines Inc SAVE.N: up 1.3% premarket ** Royal Caribbean Cruises Ltd RCL.N: up 1.5% premarket ** Norwegian Cruise Line Holdings Ltd NCLH.N: up 2.8% premarket ** Carnival Corp CCL.N: up 2.0% premarket BUZZ-Airlines, cruise operators gain on new vaccine headway ** Sonoma Pharmaceuticals Inc SNOA.O: up 10.1% premarket BUZZ-Gains on strong Q2 results ** Goldman Sachs Group Inc GS.N: up 1.3% premarket ** JPMorgan Chase & Co JPM.N: up 1.2% premarket ** Morgan Stanley MS.N: up 1.4% premarket ** Bank of America Corp BAC.N: up 1.1% premarket ** Wells Fargo & Co WFC.N: up 1.3% premarket ** Citigroup Inc C.N: up 1.4% premarket BUZZ-U.S. big banks rise on 'vaccine for the world' data ** FuboTV Inc FUBO.N: up 4.0% premarket BUZZ-Rises after brokerage raises PT on connected TV upside ** Altice USA Inc ATUS.N: up 7.3% premarket BUZZ-Jumps on $2.5 bln buyback ** Apex Technology Acquisition Corp APXT.O: up 5.2% premarket BUZZ-Rises on $2 bln merger ** HP Inc HPQ.N: up 0.6% premarket BUZZ-Up as Evercore raises PT in run-up to Q4 results ** Niu Technologies NIU.O: down 7.5% premarket BUZZ-Falls on Q3 revenue miss, dour outlook ** Ideanomics Inc IDEX.O: up 24.0% premarket BUZZ-Raises stake in e-tractor developer, shares soar ** China Online Education Group COE.N: up 17.0% premarket BUZZ-Rises on Q3 results beat ** Warner Music Group Corp WMG.O: up 1.5% premarket BUZZ-Rises on strong Q4 results (Compiled by Amruta Khandekar) ((Amruta.Khandekar@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to rise on Monday as hopes that the first COVID-19 vaccine could be available within weeks renewed bets of a swift economic recovery next year. .N At 9:04 am ET, Dow e-minis 1YMc1 were up 0.45% at 29,344.
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e9211923-9ccc-43a5-a8a9-a9f57c71a616
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728650.0
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2020-11-16 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2020-11-16
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nan
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nan
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I took a look at three stocks to avoid last week, predicting that Despegar.com (NYSE: DESP), Gogo (NASDAQ: GOGO), and Gap (NYSE: GPS) were going to lose to the market. I missed.
Despegar.com rose 13%. Revenue fell a lot harder than Wall Street expected, but the company managed to post a smaller deficit that analysts were modeling. The Latin American travel portal also announced that it had achieved its cost-savings goal.
Gogo soared nearly 20%. I figured it would be a market laggard after selling its flagship commercial aircraft online-connectivity platform, but it's still providing data and services to business jets. The encouraging vaccine news helped travel stocks move higher.
Gap rose just 3% for the week. "'Fall into the Gap,' may have been the old Gap jingle, but right now it seems as if it's investors falling into the Gap trap," I argued last week, and that's pretty much how it played out in an otherwise buoyant trading week.
The three stocks averaged a 12% ascent, blowing away the S&P's 2% climb for the week. Let's see if I can bounce back.
For this week, I see Norwegian Cruise Line (NYSE: NCLH), Lyft (NASDAQ: LYFT), and TripAdvisor (NASDAQ: TRIP) as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week.
Image source: Getty Images.
Norwegian Cruise Line
The country's third-largest cruise-line operator posted disappointing financial results last week. Revenue for the third quarter fell short of Wall Street estimates, and the company posted a larger adjusted loss than analysts were targeting. The stock still rallied -- soaring 18% for the week -- as investors grew excited about the potential of a viable vaccine hitting the market in the coming months.
Let's salt down that ocean water. Norwegian Cruise Line still has a long way to go. The vaccine isn't expected to reach mainstream distribution until the springtime, at the earliest, and the industry will have to jump through a lot of hoops before it can start sailing from the U.S. next year.
Norwegian Cruise Line had $1.2 billion in advance bookings at the end of September, but more than two-thirds of that amount comes from folks who had cruises canceled this year and either chose enhanced future cruise credit or didn't request cash refunds in time.
Lyft
This has been quite the month for the country's second-leading ride-hauling platform. The stock is up 64% in November. California voters approved a ballot measure that exempts Lyft and its peers from the heavy cost burden of having to treat its independent contractors as employees. Then we had last week's encouraging COVID-19 vaccine news, a development that will help Lyft grow its business again.
Lyft can use the lift. Its active riders count has plummeted 44% over the past year. Folks just aren't traveling as much as they used to for work, leisure, and errands. It did post better-than-expected revenue last week, but this is still the ghost of the company it was a year ago. Lyft has a long way to go before it's back.
TripAdvisor
All things travel took off last week, given the encouraging pandemic news, but was TripAdvisor's 28% weekly surge warranted? The big gain may have overshot the runway.
It's certainly true that TripAdvisor is at its best when folks are traveling and looking up reviews for hotels and attractions of where they're heading. However, TripAdvisor wasn't doing so well before the COVID-19 mess.
This is going to be a terrible year for TripAdvisor, but it will be the third time in the last five years where revenue declines. TripAdvisor was once a market darling, but it hasn't posted double-digit growth on the top line since 2015. Travelers were already weaning themselves off of the platform before the pandemic. I think the initial euphoria that sent the shares higher this past week will book a return flight to Pessimistville now.
If you're looking for safe stocks, you aren't likely to find them in Norwegian Cruise Line, Lyft, and TripAdvisor this week.
10 stocks we like better than TripAdvisor
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I took a look at three stocks to avoid last week, predicting that Despegar.com (NYSE: DESP), Gogo (NASDAQ: GOGO), and Gap (NYSE: GPS) were going to lose to the market. Despegar.com rose 13%. The stock still rallied -- soaring 18% for the week -- as investors grew excited about the potential of a viable vaccine hitting the market in the coming months.
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I took a look at three stocks to avoid last week, predicting that Despegar.com (NYSE: DESP), Gogo (NASDAQ: GOGO), and Gap (NYSE: GPS) were going to lose to the market. Despegar.com rose 13%. The encouraging vaccine news helped travel stocks move higher.
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I took a look at three stocks to avoid last week, predicting that Despegar.com (NYSE: DESP), Gogo (NASDAQ: GOGO), and Gap (NYSE: GPS) were going to lose to the market. Despegar.com rose 13%. For this week, I see Norwegian Cruise Line (NYSE: NCLH), Lyft (NASDAQ: LYFT), and TripAdvisor (NASDAQ: TRIP) as vulnerable investments in the near term.
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I took a look at three stocks to avoid last week, predicting that Despegar.com (NYSE: DESP), Gogo (NASDAQ: GOGO), and Gap (NYSE: GPS) were going to lose to the market. Despegar.com rose 13%. For this week, I see Norwegian Cruise Line (NYSE: NCLH), Lyft (NASDAQ: LYFT), and TripAdvisor (NASDAQ: TRIP) as vulnerable investments in the near term.
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2020-11-12 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q3 2020 Earnings Call Transcript
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DESP
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-q3-2020-earnings-call-transcript-2020-11-12
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Image source: The Motley Fool.
Despegar.com, Corp. (NYSE: DESP)
Q3 2020 Earnings Call
Nov 12, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning. Welcome to the Despegar Third Quarter 2020 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investors section of the company's website, www.investor.despegar.com. There will be an opportunity to ask questions at the end of the presentation. [Operator Instructions]
Now, I'd like to turn the call over to Ms. Natalia Nirenberg, Investor Relations. Go ahead.
Natalia Nirenberg -- Investor Relations
Good morning, everyone and thanks for joining us today for a discussion of our third quarter 2020 results. In addition to reporting financial results in accordance with US generally accepted accounting principles, we discussed certain non-GAAP financial measures and operating metrics, including foreign exchange neutral calculation. Investors should read the definitions of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation, as a substitute for, or superior to GAAP financial measures, and are provided as supplemental information only.
Before we begin our formal remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that maybe beyond the company's control. These include, but are not limited to expectations and assumptions related to the impact of the COVID-19 pandemic and integration and performance of the recently acquired including Best Day and Koin. For a description of these risks, please refer to our filings with the Securities and Exchange Commission and our press release.
Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the third quarter and update you on our strategic priorities. Alberto Lopez Gaffney, our CFO, will afterwards discuss the quarter's financials. After that, we will open the call to your questions. Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia and good morning, everyone. I hope you and your families are healthy and safe. We have been able to successfully adapt to and rapidly react to countless COVID-related challenges. From the start of this pandemic, we took decisive action to lead our business and organization through this unchartered waters [Phonetic]. Our accomplishments throughout 2020 have been a testament to the strength of our value proposition and resilience of our business model. Our ability to be agile and innovative and the exceptional work of our talented and passionate teams. This was further demonstrated in our Q3 results, which showed sequentially improvement despite the ongoing negative impacts of COVID on the travel industry. We have outlined key strategic initiatives and on these quarterly calls, we have been providing updates as to the progress we have made. First, we have a flexible tool kit to support our business. During the quarter, activity levels began to recover from the impacts brought about by the pandemic and we executed on our growth strategy.
Let me walk you through some key events. During the third quarter of 2020, Mexico and Brazil where the two major Latin American markets relatively more open to travel. The sequential improvement we saw in transactions and gross bookings was driven primarily by these two markets, where we also benefited from successful negotiations with our travel supplier to flexibilize [Phonetic] our product offering. A favorable mix with a higher share of accommodations and packages contributed to an exceptionally high quarter take rate, excluding cancellations.
On the marketing front, we successfully implemented a series of initiatives mostly undertaken through unpaid channels and industry events. These in turn, enable us to hold marketing spend flat when compared with the second quarter, even while our transactions tripled in the same period. Additionally, we continue to see increased transactions for mobile, up a 120 basis points from last year. With a focus on cash generation, the actions we undertook translate it into higher levels of profitability per transaction.
Moving next to cost structure. We're intensely focused on rightsizing our structure for the new operating environment and in shifting to a more variable cost model. We put in place a plan to reduce structural costs to a $28 million run rate by the end of the third quarter of 2020. We succeeded in achieving these target flexibility and cost discipline, we continued to be key in our business going forward, along with automation to increase productivity.
Cash is king [Phonetic] particularly in an uncertain operating and economic environment. Our liquidity was another highlight for the quarter. As previously disclosed, during the quarter, we closed two private placements, rising a bit less than $200 million, giving us a top of cash position at quarter end of $380 million. Additionally, net operational short term obligations we're relatively stable quarter-over-quarter, as increased sales drove up our travel payable position. While refunds and cancellations are still pending.
On the other hand, the balance sheet reflects receivables collections effect, partially offset by the absorption of Koin's loan book. Lastly, we have had to adapt to the new normal with the speed and agility needed to stay focused on delivering business results for here and now. We're advancing our long-term strategic plan for sustained long-term growth. Inorganic growth remains an important part of our strategy. We have been active this year closing on two transactions Best Day and Koin, and we are accelerating their respective integrations.
We closed Best Day with results to be reflected as of October 1. As you will hear me discuss later Best Day is already having a positive impact on Mexico gross bookings. And as of November 1, Best Day B2C travel agency business is running on Despegar's technological platform only one month after the closing was announced. This is a significant milestone compared to the six months taken to migrate Viajes Falabella B2C platform. In terms of Koin, we strengthened the credit and fraud analysis by leveraging Despegar's credit information, which has contributed to improve Koin's final conversion rates while prudently managing credit risk.
Moving next for a discussion on the LatAm air market on Slide 4. You've all heard the phrase a picture is worth more than 1,000 words. And here on this page, you can clearly see how little air traffic there is in LatAm compared with the rest of the world. This is real time flight data from FlightAware as of October 21. These large disparity reflects tighter travel restrictions in most of LatAm, except for Brazil and Mexico versus other geography.
As a reminder, although, LatAm was the last major geographic region to be impacted by COVID, travel ban were implemented at the same time as Europe. Thus the limitations to travel have been in place for a longer period and the recovery is significantly lagging behind. It is also important to note that these factors are temporary responses to the pandemic and are not indicative of structural shifts in the market.
I would now like to turn the discussion on the evolving air travel environment in the LatAm. The new quarter, we continue to experience COVID-related challenges in certain geographic markets, specifically in Argentina travel has been banned since mid-March and has remained the most restrictive travel market. But we are seeing some signs of opening up. For example, effective October 30, Argentina has allowed international tourism travel for foreigners Argentines located in nearby countries that is Chile, Brazil, Peru and Paraguay. By contrast Uruguay has kept its borders closed. In addition, domestic flights recently opened for work related or emergencies, but not for tourism and subject to the approval of each local government. Overall, air traffic in the country remains restricted.
Moving next to Chile. In terms of traffic, international flights were only allowed for Chilean residents through the end of July and since the beginning of August where available for all. Domestic flights were opened with restrictions and still remain banned in key touristic areas such as the Lakes in Southern Chile. With respect to hotels, they closed in April and began reopening in September. In Colombia, domestic commercial air travel will start gradually in September with international travel reopening also gradually on September 21.
The situation in Peru has been mixed. Domestic flights resume in July but close again in August to contain the pandemic and then restarted again in September. International flights were allowed in early October. As I will discuss more in the next few slides, Mexico and Brazil are leading the recovery with sequential improvement, while still showing significant year-on-year decline. Mexico remains open throughout the quarter while Brazil had some restrictions in selected municipalities, which were lifted in October. With respect to hotel bookings, we're seeing a similar trend by country as with flight.
Moving next to Slide 5 for a discussion of transactions and gross bookings. Our third quarter transactions and gross bookings significantly improved when compared with the second quarter, which we believe represented a low for the company. That was at the start of the pandemic when globally most economies were shut down. Importantly, the level of transactions tripled from the second quarter slow. The sequential recovery is mostly attributable to Brazil and Mexico. With respect to gross bookings the recovery is a bit slower impacted by the mix shift to domestic travel and overall FX depreciation across the region.
Moving to the chart on the right, where we have presented the monthly evolution of both transactions and gross bookings. On a monthly basis, we also observed a sequential improvement. July was the lowest month of the quarter and we steadily improved as the quarter progress. As we enter the fourth quarter, we continue to see the recovery trend in October, which also includes a contribution from Best Day for the month. Best Day accounted for 19% of transactions in October and 23% of gross bookings.
On a monthly basis between July and October transactions and gross bookings increased at the compounded annual growth rate of 30% and 40% respectively. Of note, Best Day has a very strong presence in the domestic Mexican market, one of the key reasons that made this a very attractive acquisition for us. While we are still operating under the impact and uncertainty of the pandemic transactions and gross bookings were down year-over-year and where recovery trends are encouraging. There remains uncertainty about the future, as we are seeing many countries, particularlyEurope, start to shut down again.
Our geographic diversification served us well in the third quarter. This is reflectived in the increasing monthly demand for our products in Brazil and Mexico, which both were generally open to travel throughout the period as shown on these two charts. Demand was mainly fueled by domestic trips and destinations close to nature, such as beaches. Furthermore, additional products and services that we can provide including broad financing alternatives and has bookings flexibility as we adopted our value offer in response to the pandemic, help us drive these performance.
Now let me discuss these two key markets individually, starting with Brazil, 85% of gross bookings in the quarter were for domestic travel and we have been able to capture demand for travel to beaches in North Eastern Brazil as we are growing interest to touristic destinations close to the larger cities. We're also very pleased with the performance of Pasaporte Decolar, our loyalty program launched in Brazil a year ago. Today, we have more than 0.5 million loyalty members who are keen purchasing higher margin hotels and other travel products and transacting on our mobile app. Lastly, our recent acquisition of Koin, a financing platform further reinforces our financing capabilities.
Turning next to Mexico. With a country generally open to domestic travel the Riviera Maya/Cancjun remain our main destinations. We also observe a high level of packages sold, packages were also particularly strong in the first half of October, accounting for 50% of gross bookings, which includes 15 days of Best Day operations. Importantly with the acquisition of Best Day, our Mexican operations now account for a similar share of gross bookings as Brazil representing our two largest markets.
Turning next to Slide 7 for an update on key strategic initiatives. From a financial and operational perspective, we took bold steps since the pandemic began, in order to reduce costs and leverage our competitive advantages, in mainly every area of our operations. I will highlight a few of these areas today. To begin with, as global travel came almost to a halt, we engage with our travel partners to arrive at a win-win situation. This along with the strong performance non-air products drove an exceptionally high take rate this quarter of 12.7% in these unprecedented challenging environment.
While we're proud of these, let me remind you, as we mentioned in our Investor Day that in more normal circumstances Despegar is a company that can achieve take rates within the range of 11.5%. Stepping back for a moment, let me talk specifically about what we were able to work out with our suppliers. Negotiated flexible inventory with suppliers at mid [Indecipherable] health and safety requirements as well as the option to reschedule bookings as required. Expanded our domestic offering adding over 500 new hotels. During the third quarter, we completed a White Label Agreement with BBVA in Peru and subsequent to quarter end added Argentina and Uruguay in October.
We also drove significant improvement in several other key performance metrics. An example of this was our ability to leverage organic traffic. Over the past year, we have been able to increase our usage of unpaid marketing channels. As you can see on the chart in the center of the slide, direct marketing spend per transaction section index through the first quarter of 2018 declined to 17 in the second quarter of 2020 and further down to 14 this past quarter.
Importantly, in the third quarter, marketing spend was flat when compared to the second quarter of 2020, even as we deliver a 3 times quarter-over-quarter increase in transactions. We have also had marketing success with industry events, where we have worked very closely with our financial and trusted partners to deliver an attractive value proposition to our consumers. Mobile has also been a key initiative for us and during the quarter, we saw increased transactions via mobile, 51% in the third quarter of 2020, up from 39% one year ago.
Considering the unprecedented impact from COVID-19, we have taken decisive steps to reduce costs and further, simplify our operations. I'm pleased that we achieve our structural cost run rate target that we presented to the investment community earlier this year. By quarter end, structural costs were down 49% year-over-year. Our cost actions give us confidence that we will emerge from this crisis as a financially stronger company. In sum, we will focus on ensuring liquidity and optimizing cost, including actions to improve cash flow generation. As we've said before, we are confident in our financial position and our ability to manage through these very uncertain times. We've taken actions to build a strong financial base, including reducing our cost structure, enhancing our financial flexibility and investing where it matters most to our customers as we strengthen our leadership position.
Now let me turn the call to Alberto to go over our financial performance. Thank you, Damian and thank you all for joining us today. We delivered improved sequential topline performance this quarter, although, we still significantly impacted by the pandemic. As reported revenues returned to positive territory this quarter, reaching close to $12 million, from negative nearly $10 million in the second quarter. Customer cancellations continued to have a strong impact on our topline and amounted to over $9 million this quarter. This reflects the relaxation of Despegar's refund policy as we [Indecipherable] policy that includes refund of customer fees, as well as provisions for potential customer cancellations in October and November, given the lagging industry recovery in LatAm. Higher flexibility in non-refundable bookings following our negotiations with our travel partners, also contributed to the increase in cancellations. During these extraordinary cancellations and provisions, revenues in the quarter would have reached $21 million up from slightly over $4 million in the prior quarter. But still significantly behind the $132 million reported in the third quarter last year. As Damian mentioned earlier, we achieved an exceptionally high take rate of 12.7% this quarter, excluding cancellations. This solid performance also reflects the volatility we are experiencing in our market these days. Moving onto profitability on Slide 9, comparable adjusted EBITDA for the quarter improved sequentially to a loss of nearly $17 million from a loss of $32 million in the second quarter of this year. Year-on-year, however, comparable adjusted EBITDA were down from a gain of over $9 million in the third quarter last year impacted by the pandemic. As detailed in our earnings release published this morning, comparable adjusted EBITDA excludes extraordinary charge of slightly over $17 million incurred in third quarter 2020 in connection with COVID-19. In addition to customer travel cancellations and provisions, it includes severance payments from our cost savings initiatives as well as one-time fees related to M&A and capital raising efforts. Remember that second quarter 2020 also included nearly $34 million in extraordinary charges, mainly resulting from the pandemic. Moving to liquidity on Slide 10. We closed the quarter with a strong balance sheet with cash and equivalents at $386 million, which include proceeds from the recent $200 million private capital raise, closed toward the end of September. This compares with a cash position of $228 million at the close of the prior quarter. In these challenging context, our operating activities drove a use of cash of $24 million compared to cash generation of nearly $26 million in the same quarter last year. The use of cash this quarter mainly reflected our net loss of $42 million that was partly offset by non-cash adjustments in connection with allowances for doubtful accounts and amortization of intangibles. In terms of working capital, new sales triggered an increase in Tourist Payables offset by a reduction in accounts payable. Now please turn to Slide 11 for an update on the Best Day integration. We are pleased to report that in less than a month following transaction closing, we achieved two key goals. As Damian just discussed, we have started to quickly capitalize on the monthly recovery we are seeing in the domestic travel market in Mexico and are very encouraged with the progress we're seeing to date. On the tax front, we have already migrated Best Days B2C business to Despegar's platform just 30 days after closing the transaction. Over the next months, and until early 2022, we will be executing on the integration plan of Best Day, advancing on four different fronts that we anticipate, we will have a direct positive impact on our P&L. First, from a topline perspective, we are now operating through two different branch in Mexico to fully capture the country's attractive potential as a tourist destination. As the second most recognized travel agency in Mexico after Best Day and over a three decade future history in the country. Best Day provides us with a deeper understanding of domestic travel of the Mexican consumer. To put this in perspective, note that eight of the top 10 destinations booked by Mexicans in 2019 were domestic. Mexico is also Latin Americans largest travel market and the seventh largest destination worldwide. The combination of our existing B2B operations together with hotels though [Phonetic] Best Day's leading hotel service aggregator provides us with the most extensive hotel quantity in Latin America. Second, we aim to enhance revenue margins and two key initiatives. On the one hand, we are starting to consolidate source further leveraging our negotiating power. At the same time, we plan to cross sell Best Day's in destination services to Despegar's passengers traveling to Mexico, thus contributing to margin expansion. Third, our plan also calls for additional efficiencies in terms of cost of running the market, particularly in Best Day's Kiosks model and call center operations. We also plan to leverage our marketing capabilities and consolidate back office operations, which are anticipated to drive improvement in cost and instalments, break up processing [Indecipherable]. Lastly, we also expect to drive higher efficiencies in terms of G&A, as well as technology and content. To achieve this, we are working on integrating all of Best Day's business lines, namely it's B2C in destination activities and the B2B operation into Despegar's IT platform. This also entails an ambitious restructuring as we merge IT, sourcing operations and administrative rules providing operating leverage. All these actions combined, once the LatAm travel returns to 2019 volume levels. We expect Best Day's revenue margin to increase from 300 basis points from 2018 levels. In terms of cost of revenues, and marketing expenses, we expect Best Day operations to achieve savings of between 1 percentage points to 1.5 percentage points as a percentage of gross bookings. We also see 40% to 50% reductions in terms of G&A and Tech and Content. All combined, we anticipate this integration initiatives will contribute between $20 million to $30 million in annual EBITDA and Best Day. Recapping been quickly on the key highlights for the quarter. While we saw sequential improvements in Brazil and Mexico, the travel industry in LatAm remains highly impacted by the restrictions in place. Commercial air travel in LatAm was down 70% year-on-year in the third quarter. This compares with declines of 50% in the US and 56% in Europe in the same period. Our win-win value proposition for customers and travel partners contributed to particularly high take rate excluding cancellations. Organic channels continue to perform well supported declining per transaction paid marketing. Importantly, mobile accounted for 51% of transactions. We are running a lean operation after meeting our goal of cutting structural cost by 49% this quarter. The combination of these efforts, allowed us to cut adjusted EBITDA losses in comp sequentially. We are also advancing rapidly on the integration of Best Day. And finally, we have further strengthened our balance sheet with a recent capital raise to support execution of our growth strategy. Now please turn to Slide 13 for final remarks. Looking ahead, we continue to operate in an uncertain environment with external factors still impacting consumer behavior and the travel industry. In this context, we remain focused on the four key goals established earlier in the year. We expect to continue benefiting from the adjustments made across the company to navigate these new market conditions and integration of Best Day. First, focusing on the business activity. Brazil and Mexico remain our key growth markets, in particular, we expect to see continued recovery hotels and packages in Brazil. At the same time, we anticipate a slight recovery in Argentina, Chile and Colombia as restriction in these markets are gradually lifted. In Mexico, as you can see from the October data points per share fourth quarter results are already benefiting from the contribution of Best Day as it leverages a strong focus on the Mexican domestic market. Prioritizing unpaid marketing sources is also a key element of our strategy as we have successfully done this quarter. The next few months are quite relevant with two most important markets. In Mexico, we have Buen Fin, which is the biggest national marketing campaign of the year, in the country and Black Friday in Brazil. We are leveraging our relationship with our financial partners with a goal of providing an attractive value proposition that includes discounts on financing. We continue to enhance our domestic offering on prioritizing the personal health of our customers. We're working on further strengthening our 320,000 vacation rental offering. We have achieved significant cost reduction over the last two quarters, which provide an indication of how we expect to see our P&L depending on recovery events. Although, unclear on its timing, as Despegar navigating through this pandemic environment, we are encouraged with the future performance of the Despegar, business. To share such a view, we will be excluding the impact of both Best Day and Koin with respected integration efforts and the impact of canceled tickets, rescheduling and their servicing to 2019 due to COVID-19. Under these assumptions, we understand Despegar could be EBITDA breakeven as we get to gross bookings per quarter in the 400 million area, which is approximately 35% of Despegar's 2019 gross bookings. Third, we have a strong cash position. The recent capital race has provided Despegar with resources to continue advancing on our growth strategy. At the moment, we are screened and evaluated several M&A opportunities. At the same time, we continue taking care of our customers and processing refund requests and cancellations. Many of these require a manual response that is taking our time and efforts to complete by moving forward on this front. Finally, we continue making progress on the integration of recent acquisitions. During the following quarters, we expect to make working capital investment at Best Day in connection with this travel [Indecipherable]. According to the revised terms of the acquisition disclosed last July, these working capital adjustments together with indebtedness are included in the base consideration of $56.5 billion. As such consideration to be paid 36 months following closing will be approximately $26.6 million. Earout payment performance dependent on EDU only 48 months following set closing. At Koin, we are working on integrating this business into our best-in-class fraud and errors platform, while progressing in completing the API connectivity, both on the app while launching the fix project in line with Central Bank developments aimed at fostering [Indecipherable]. In conclusion, the pandemic has challenged our business model and we have demonstrated agility and operational efficiency as we leverage a digital technology we've been investing in for years. We also continue to focus on developing our longer term strategies intended to ensure we maintain our leading position, while further strengthening our financial performance and creating ongoing value for shareholders. This ends our prepared remarks. We are now ready to take your questions. Operator, please open the line for questions.
Questions and Answers:
Operator
We will now begin the question-and-answer session. [Operator Instructions] Our first question is from Edward Yruma -- from Alexandria Aranda [Phonetic] from Itau. Go ahead.
Alexandria Aranda -- Itau -- Analyst
Hi. Good morning. Just one question, if I may. I wanted to have a little bit more clarity on how much working capital will be demanding the Best Day operation?
Alberto Lopez Gaffney -- Chief Financial Officer
Okay. Sure. Good morning, Alexandria. [Phonetic] How are you doing? Addressing your question, I would like to point on two aspects. One is, what's the actual burn rate, burn rate is in 2020 and we expect that to be -- to go down significantly next year, OK. It is around $10 million. Then, what you have is that it's already included in what will be -- will end up being the final payment to the selling shareholders at Best Day. And as a reminder that will take place, 36 months only in September 2023, OK.
And we do have to inject capital when it comes to paying down suppliers debt that Best Day had, OK. That amount in 2020 and 2021 is around slightly above $30 million, OK. But importantly going back to the final consideration to be paid to the [Indecipherable] shareholders, OK. Remember that we announced that the final price for Best Day, excluding the earn out was $56 million, OK. So the remaining value to be paid to the selling shareholders is around $26 million, OK. So there is a $30 million reduction that at the end equates nicely with what is the supply of debt that we need to pay down in 2020 and '21. Hope that's clear.
Alexandria Aranda -- Itau -- Analyst
Okay. Perfect. Yeah. Very clear. Thank you.
Operator
Our next question is from Edward Yruma from KeyBanc Capital Markets. Go ahead.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Hey. Good morning. Thanks for taking the question. Just as you start to contemplate what a post-COVID environment look like. Just trying to understand how quickly can you readd capacity particularly on packages? And is there a lagging given that I know many are package consumers do instalment payments. Is it fair to assume that will lag a general reopening? Thank you.
Damian Scokin -- Chief Executive Officer
Okay. Edward, Hi. This is Damian. How are you? Thanks for your question. There were some noise in the line -- let me make sure I understood. The question is mostly -- how fast can we add capacity to the package aspect of our business. Let me do that in terms of capacity, we don't have any constraints. Moreover, while increasing capacity as we integrate Best Day and consolidate our sourcing team. So therefore, at the moment, we not only have the same, but I would say, significantly more capacity that we had last quarter. The constraint at this moment is more demand. And as we mentioned in our remarks, demand for packages is showing -- growing and [Indecipherable] in both Mexico and Brazil. And as a percentage of total assets are increasing. But we expect the remaining geographies to catch up and continue a positive trend in the next quarters, but there is no capacity constraint at this moment. [Speech Overlap]
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Yeah. And really the follow-up to that is, do people think prospectively about a vaccination reopening or do you think that they want to wait and actually see the markets reopen prior to our purchasing some of these packages. Thank you?
Damian Scokin -- Chief Executive Officer
Well, that's hard to sell. Hard to say, in a sense, what we've seen for example in Brazil and Mexico where government restrictions have been much milder, is that people do not wait the significant portion at least of the population and consumers do not wait until vaccine type of solution is in place and they are reacting nicely and continue showing strength in demand. So while our expectation is that as other countries relax their restrictions, we see some ramp-up in demand, even before any vaccination is available.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Thank you.
Operator
Our next question is from Eric Sheridan from UBS. Go ahead.
Eric Sheridan -- UBS -- Analyst
Thank you so much for taking the question. Hope everyone on the team is safe and well. Can I just get an update on the broader competitive environment. What are you seeing in terms of taking market share vis-a-vis your competitors? And is there any sense of country by country where you might see opportunities to maybe grow inorganically and take advantage of some of the market dislocation during this period, the way in which you had -- what you've talked about on prior calls? Thank you so much.
Damian Scokin -- Chief Executive Officer
Hi, Eric. How are you? This is Damian. In terms of competitive dynamics, what we see is obviously a significant reduction in overall marketing investments compared to other more "normal quarters". We -- now we're strategy as we described less focused in market share because we value percentage point of market share in an overall market that's 80% to 75% smaller than what normally, as a logical much less valuable. As we said, we're focusing in the strategy to maximize by our margin and generate cash to preserve cash in this context. So what we see is, in a nutshell, a less intense competitive pressure, significant in the portion of our offline competitors are having financial troubles. And we are happy with the balancing between the recovery and marking we are getting.
In terms of inorganic growth as you hear from us several times, we continue having a set of conversations with a lot of potential partners and obviously, this is a good time to consolidate, given the situation of the industry as you expect. Maybe we cannot get into details and into the specifics, but the combination of the market context and the strength of our balance sheet, obviously, make this a very attractive moment for us to speed up those conversations. As usual, just another touch point if you are focusing in the key markets of Brazil and Mexico as we've been saying over time.
Operator
Our next question is from Brian Nowak from Morgan Stanley. Go ahead.
Alex Wong -- Morgan Stanley -- Analyst
Hi. This is Alex Wong on for Brian. Thanks for taking the question. Just two questions. First, I think you rolled out the loyalty program in Brazil last year at around 100,000 members, that's grown nicely to over 500,000 now. Can you talk little about the early learnings and type of engagement you see whether it's repeat rate or conversion rate and whether there are any plans to roll this out to additional markets? Second, you talked about obviously leaning in on unpaid channels like email and push notifications, how do you see the mix of unpaid evolving as demand normalizes, and what are you seeing on the competitive front on the paid marketing side as well?
Damian Scokin -- Chief Executive Officer
Hey, Alex. This is Damien. I'll start by the loyalty question in the part of geographic expansion. Obviously, we have planned to roll out our loyalty program into new geographies. The priorities are Argentina and Mexico. As per the evolution and the performance of the of the program in Brazil, obviously, we had to adjust our target in terms of performance given the context of the industry, but I would say that after you take that into consideration, the performance in terms of repeat rate, in terms of our ability to sell, credit cards and other indicators, like the other in selling price, the ticket price is much higher, the penetration of mobile in all those dimensions, the program has exceeded our expectations. When you adjust those by, as I said the situation in the overall travel industry. So we're very happy with that performance, and we are very excited about this rolling into other geographies. Obviously that rollout on the launch of the program will be timed according to when market we invest then like the one required to launch a program makes sense in the context of the travel industry.
To the second portion of your question about traffic. As we said, we believe this is a great time to leverage our brand and use our organic traffic, we do not expect that to be the situation on an ongoing basis. Having said that remember that Despegar has additionally high -- a very high portion of non-paid traffic in normal conditions. So we will step up our investment in paid traffic, but we expect to return to normal levels on a pre-COVID situation. As I mentioned before, overall investment to your point of competitive intensity has been reduced significantly in the region.
Alex Wong -- Morgan Stanley -- Analyst
Thanks, Damian.
Operator
[Operator Instructions] Our next question is from Kevin Kopelman from Cowen. Go ahead.
Emily Levin -- Cowen -- Analyst
Hi. Good morning. This is Emily Levin on for Kevin. Thank you very much for providing us with the monthly gross bookings progression throughout Q3 and October for Brazil and Mexico. I was wondering if you could help us understand what those numbers imply on a year-over-year basis for October, and if you're continuing to see sequential improvement in November? Thank you.
Damian Scokin -- Chief Executive Officer
Okay. Sure, Emily. I think the performance foremost Emily, as I have highlighted in the opening remarks of the call, they differ very much by market. As we stated, Brazil and Mexico are clearly the engines behind the recovery of our business, OK, on what you're seeing on year-on-year, OK, both Brazil and Mexico are currently, let's say, around minus 70 vis-a-vis last year, OK, and Mexico, minus low 70s. Brazil over the past -- up until October, I think the trend was what is clear in our presentation, where we have seen, and again, I think it's important just to always consider the amount of uncertainty, every travel player is currently operated today.
And in that context, where we see this Brazil continued in November in a nice way, OK, but we started to see some signs, early signs of fatigue, OK, that again, I think we need to be particularly prudent -- fatigue in Mexico, OK. So there was a bit of explanation vis-a-vis the October trends, OK, in November, in Mexico. This week is -- for the next 10 days, OK, on aggregate from beginning to end, there would be the Buan Fin. Buan Fin is a big sale -- travel sale in Mexico, OK. And I think a relevant portion of the November numbers will be actually obtained through what happens in the upcoming week.
Then when it comes to the other countries, OK, clearly, Argentina is the one that is the most, let's say, subdued, OK. Argentina, to give you an idea is in minus 90 vis-a-vis last year, OK. And this is all in -- all the other savings in gross bookings in dollar terms. And then what we're seeing is that the Andean region, let's say Colombia, Chile, Peru, where they are starting to recover, they have recovered a lot more slowly than Brazil and Mexico. But they currently are in, let's say, in the high 70s, OK, minus relative to last year.
So, again, we have seen a good comeback of the market. Still we are awfully away from the metrics that this company posted in 2019. We need to be particularly prudent on providing a longer term perspective on this. That's why we're just sticking to what the history has been up until October. But importantly, we are running today a company that is on us -- on a [Indecipherable] basis a lot more profitable, OK, with this strategy of increasing profitability and cash preservation and cost creation.
Emily Levin -- Cowen -- Analyst
Thank you very much.
Damian Scokin -- Chief Executive Officer
You're welcome.
Operator
Our next question is from Michael Tanzer [Phonetic] from Callaway Capital. Go ahead.
Michael Tanzer -- Callaway Capital -- Analyst
Hi, guys. I wanted to say congratulations on the capital raise and shoring up your balance sheet in a time of uncertainty and part of the financing was done at very attractive rates. So, as a shareholder, I want to say, we appreciate the mindful consideration for dilution and cost of capital. And my question had to do with your guidance earlier or let's not say guidance, but notion that you would be roughly operating cash flow breakeven at something like 35% of 2019 gross bookings.
And while it's uncertainty that you're facing about the picture of demand, I guess my question would be as to how we should be thinking about the cost structure going forward as demand ramps up closer to 2019 gross bookings or some level thereof. And should we think about the structural costs that you're currently running as fixed? And then how should we think about the, let's say, incremental variable costs as levels of demand return to 2019 levels? Is it structural cost will stay relatively fixed? And let's say demand should be at 50% of the market increase or something like that. Could you maybe help us out with that. Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Hi, Michael. Alberto Lopez here. Thanks for your question and thanks for your remarks. With regard to the cash flow breakeven, OK, specifically our statement was that we were seeing that this company could be EBITDA breakeven. EBITDA breakeven with a gross booking level on a quarterly basis of around $400 million gross bookings. So, again, it's not operating cash flow that is EBITDA, OK? And having clarified that point, OK, on the structure clearly the statement is also excludes what our -- what the impact of the day, not only from the perspective of the P&L, of the [Indecipherable], but also from the perspective as you might imagine, that we are not including those structural cost integration. If you take some resources to integrate this and the target companies or the new partner companies efficiently. And a proof of that is that in just 30 days, OK, we transfer the B2C business of the day. And now that it's operating under our platform. However, in order to do that, what we're doing is adjusting some resources. In addition, importantly, OK, as you might imagine, OK, with the current context given the amount of bookings that have been put on hold, we have a number of open tickets vis-a-vis our air travel suppliers. So clearly, from a customer service perspective, the cost structure today it is heavier than what we will be -- what we understand will be once they COVID impact [Phonetic], let's call it that way, like the COVID impact [Phonetic] is taken off our shoulders. Okay. So again, the $400 million need to be considered for gross booking for a $400 million of gross booking for an EBITDA breakeven, they consider those two key assumptions, OK. Then, how will the current cost structure of $27.8 million achieved in Q3? Move forward, OK, the focus of the company and that is one of the key priorities for the company is to increase the standardization of the internal processes on automation of those processes. So that we can reach for the fixed cost, OK, we can reach from that level of around what will be close to $2 billion of gross booking on a yearly basis. We can then only grow, let's say, with an operational leverage of around 50%, meaning that if orders go up by, let's say, for argument sake 10%, our free cost structure would only go up by 5%, OK. And I think that's the beauty of the business as we continue to automating our backoffice processes, all the support areas, etc. So hopefully with that, you understand what's included in the EBITDA breakeven numbers, OK. How will that cost structure start growing, OK, with the amount of operational leverage? And we expect that cost structure to start growing from at around a gross booking number of $2 billion. We believe that we currently have a cost structure, OK, that up until around $2 billion of gross bookings, OK, we do not need the add material cost to the structure.
Michael Tanzer -- Callaway Capital -- Analyst
Understood. That's very helpful, both on, as you say, the COVID backpack and also the way that the cost structure should scale and that the business should be very profitable as you kind of leverage your fixed cost and the variable costs grow at a significantly lower rates than the demand picture. And so I appreciate that and thank you for clarifying.
Alberto Lopez Gaffney -- Chief Financial Officer
You're welcome.
Operator
This concludes our question-and-answer session. I would now like to turn the conference back over to Damian Scokin, CEO. Go ahead, please.
Damian Scokin -- Chief Executive Officer
Thank you. Thank you all for joining us today. We look forward to speaking with you again next quarter. In the meantime, we will remain available as usual to answer any questions that you might have. Stay safe. Bye.
Operator
[Operator Closing Remarks]
Duration: 56 minutes
Call participants:
Natalia Nirenberg -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Alexandria Aranda -- Itau -- Analyst
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Eric Sheridan -- UBS -- Analyst
Alex Wong -- Morgan Stanley -- Analyst
Emily Levin -- Cowen -- Analyst
Michael Tanzer -- Callaway Capital -- Analyst
More DESP analysis
All earnings call transcripts
10 stocks we like better than Despegar.com, Corp.
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*Stock Advisor returns as of October 20, 2020
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (NYSE: DESP) Q3 2020 Earnings Call Nov 12, 2020, 8:00 a.m. Welcome to the Despegar Third Quarter 2020 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investors section of the company's website, www.investor.despegar.com.
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In terms of Koin, we strengthened the credit and fraud analysis by leveraging Despegar's credit information, which has contributed to improve Koin's final conversion rates while prudently managing credit risk. This reflects the relaxation of Despegar's refund policy as we [Indecipherable] policy that includes refund of customer fees, as well as provisions for potential customer cancellations in October and November, given the lagging industry recovery in LatAm. Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Alexandria Aranda -- Itau -- Analyst Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Alex Wong -- Morgan Stanley -- Analyst Emily Levin -- Cowen -- Analyst Michael Tanzer -- Callaway Capital -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp.
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Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Alexandria Aranda -- Itau -- Analyst Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Alex Wong -- Morgan Stanley -- Analyst Emily Levin -- Cowen -- Analyst Michael Tanzer -- Callaway Capital -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q3 2020 Earnings Call Nov 12, 2020, 8:00 a.m. Welcome to the Despegar Third Quarter 2020 Earnings Call.
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Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Alexandria Aranda -- Itau -- Analyst Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Alex Wong -- Morgan Stanley -- Analyst Emily Levin -- Cowen -- Analyst Michael Tanzer -- Callaway Capital -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q3 2020 Earnings Call Nov 12, 2020, 8:00 a.m. Welcome to the Despegar Third Quarter 2020 Earnings Call.
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2020-11-09 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2020-11-09
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nan
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nan
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I took a look at three stocks to avoid last week, predicting that 3D Systems (NYSE: DDD), ExxonMobil (NYSE: XOM), and The GEO Group (NYSE: GEO) were in for a rough few days. I didn't get them all right, but I did come out ahead.
3D Systems moved nearly 10% higher, as the 3D printing specialist announced an asset sale and then came through with better-than-expected quarterly results.
ExxonMobil rose a mere 0.5% for the week, losing badly to the market as the country's incoming president has been vocal about shifting our dependence away from fossil fuels.
The GEO Group slumped 5% for the week. "The operator of private prisons and other detention centers is going to be on borrowed time if Biden wins the White House," I argue
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3D Systems moved nearly 10% higher, as the 3D printing specialist announced an asset sale and then came through with better-than-expected quarterly results. ExxonMobil rose a mere 0.5% for the week, losing badly to the market as the country's incoming president has been vocal about shifting our dependence away from fossil fuels. "The operator of private prisons and other detention centers is going to be on borrowed time if Biden wins the White House," I argue
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I took a look at three stocks to avoid last week, predicting that 3D Systems (NYSE: DDD), ExxonMobil (NYSE: XOM), and The GEO Group (NYSE: GEO) were in for a rough few days. I didn't get them all right, but I did come out ahead. The GEO Group slumped 5% for the week.
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I took a look at three stocks to avoid last week, predicting that 3D Systems (NYSE: DDD), ExxonMobil (NYSE: XOM), and The GEO Group (NYSE: GEO) were in for a rough few days. I didn't get them all right, but I did come out ahead. "The operator of private prisons and other detention centers is going to be on borrowed time if Biden wins the White House," I argue
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I took a look at three stocks to avoid last week, predicting that 3D Systems (NYSE: DDD), ExxonMobil (NYSE: XOM), and The GEO Group (NYSE: GEO) were in for a rough few days. I didn't get them all right, but I did come out ahead. 3D Systems moved nearly 10% higher, as the 3D printing specialist announced an asset sale and then came through with better-than-expected quarterly results.
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728653.0
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2020-10-08 00:00:00 UTC
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Why Despegar Stock Sank 25.6% in September
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DESP
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https://www.nasdaq.com/articles/why-despegar-stock-sank-25.6-in-september-2020-10-08
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What happened
Shares of Despegar (NYSE: DESP) slumped 25.6% in September, according to data from S&P Global Market Intelligence. The Latin American online travel company lost ground amid a sell-off in the broader market and surges in newly diagnosed COVID-19 infections in many parts of the world.
^SPX data by YCharts
Confirmed coronavirus cases continued to roll in at relatively high levels in countries across Latin America, and the resurgence of pandemic hot spots in Europe further dampened the near-term outlook for the travel industry. Despegar's stock slide last month followed a 10.9% increase for the company's share price in August.
Image source: Getty Images.
So what
Like many companies in the travel sector, Despegar has been hit hard by the coronavirus pandemic. Brazil, Colombia, Argentina, Mexico, and Peru are among the countries with the highest numbers of confirmed COVID-19 infections, and economic pressures, government-imposed restrictions, and safety concerns have crushed online travel booking. While new coronavirus diagnoses in most large Latin American countries last month were falling or holding steady, not rising, their numbers were still high, and the ongoing issues created by the virus signaled that headwinds for the travel industry are unlikely to abate soon.
While September's virus trends signaled ongoing challenges for the company, Despegar did manage to secure $200 million in new funding -- courtesy of investments from L Catterton and Waha Capital. That influx of capital should put the business in a better position to weather a rough stretch for the travel industry.
Now what
So far in October, Despegar's stock price has climbed by roughly 3.4%.
DESP data by YCharts
Year to date, though, the stock is off by roughly 48%. Facing dim sales prospects in the near term, the company is making moves to reduce operating costs. Despegar has a market capitalization of roughly $490 million and is valued at 3.6 times this year's expected sales.
10 stocks we like better than Despegar.com, Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 24, 2020
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Despegar (NYSE: DESP) slumped 25.6% in September, according to data from S&P Global Market Intelligence. Despegar's stock slide last month followed a 10.9% increase for the company's share price in August. So what Like many companies in the travel sector, Despegar has been hit hard by the coronavirus pandemic.
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While September's virus trends signaled ongoing challenges for the company, Despegar did manage to secure $200 million in new funding -- courtesy of investments from L Catterton and Waha Capital. What happened Shares of Despegar (NYSE: DESP) slumped 25.6% in September, according to data from S&P Global Market Intelligence. Despegar's stock slide last month followed a 10.9% increase for the company's share price in August.
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Despegar's stock slide last month followed a 10.9% increase for the company's share price in August. What happened Shares of Despegar (NYSE: DESP) slumped 25.6% in September, according to data from S&P Global Market Intelligence. So what Like many companies in the travel sector, Despegar has been hit hard by the coronavirus pandemic.
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Despegar has a market capitalization of roughly $490 million and is valued at 3.6 times this year's expected sales. What happened Shares of Despegar (NYSE: DESP) slumped 25.6% in September, according to data from S&P Global Market Intelligence. Despegar's stock slide last month followed a 10.9% increase for the company's share price in August.
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2020-09-19 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 9/19/2020
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DESP
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-9-19-2020-2020-09-19
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Despegar.com Corp is an Argentina-based online travel company. It provides a broad suite of travel products, including airline tickets, travel packages, hotel bookings and other travel products. It organizes its business into two segments: Air, which consists of the sale of airline tickets, and Packages, Hotels and Other Travel Products, which consists of travel packages, as well as stand-alone sales of hotel rooms, car rentals, bus tickets, cruise tickets, travel insurance and destination services. The Company's one-stop marketplace enables millions of users to find, compare, plan and easily purchase travel services and products through its websites and mobile apps. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand. It operates in Latin America across 20 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of DESPEGAR.COM CORP
Full Guru Analysis for DESP
Full Factor Report for DESP
More details on Validea's Kenneth Fisher strategy
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand.
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Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company.
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Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company.
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Company Description: Despegar.com Corp is an Argentina-based online travel company. Detailed Analysis of DESPEGAR.COM CORP Full Guru Analysis for DESP Full Factor Report for DESP More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry.
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2020-08-24 00:00:00 UTC
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MIDEAST STOCKS-Most Gulf markets rise; Industries Qatar boosts Qatar index
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DESP
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https://www.nasdaq.com/articles/mideast-stocks-most-gulf-markets-rise-industries-qatar-boosts-qatar-index-2020-08-24
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Aug 24 (Reuters) - Major stock markets in the Gulf region rose in early trade on Monday, with the Qatari index boosted by gains in shares of Industries Qatar IQCD.QA after the petrochemicals firm bought a stake in Qatar Fertiliser Co (QAFCO).
Saudi Arabia's benchmark index .TASI firmed 0.2%, with oil giant Saudi Aramco 2222.SE gaining 0.3%, while Al Rajhi Bank 1120.SE was up 0.2%.
Aramco said on Sunday it was setting up a new corporate development organisation to oversee the company's assets and secure greater access to growth markets and technologies.
Qatar's index .QSI added 0.8%, as Industries Qatar surged 6.5%, reaching its highest level since May, after the petrochemical maker bought Qatar Petroleum's 25% stake in QAFCO for $1 billion.
In Dubai, which traded after a session's break, the index .DFMGI gained 1.1%, with blue-chip developer Emaar Properties EMAR.DU rising 2.4% and Emirates NBD ENBD.DU adding 1.4%.
The Abu Dhabi index .ADI was up 0.3%, helped by a 0.2% increase in the country's largest lender First Abu Dhabi Bank FAB.AD.
Waha Capital WAHA.AD rose 1.2%, after the investment firm announced on Sunday an investment of 184 million dirhams ($50.10 million) in Despegar.com DESP.BA, an online travel company in Latin America.
($1 = 3.6728 UAE dirham)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Rashmi Aich)
((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Waha Capital WAHA.AD rose 1.2%, after the investment firm announced on Sunday an investment of 184 million dirhams ($50.10 million) in Despegar.com DESP.BA, an online travel company in Latin America. Aug 24 (Reuters) - Major stock markets in the Gulf region rose in early trade on Monday, with the Qatari index boosted by gains in shares of Industries Qatar IQCD.QA after the petrochemicals firm bought a stake in Qatar Fertiliser Co (QAFCO). Aramco said on Sunday it was setting up a new corporate development organisation to oversee the company's assets and secure greater access to growth markets and technologies.
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Waha Capital WAHA.AD rose 1.2%, after the investment firm announced on Sunday an investment of 184 million dirhams ($50.10 million) in Despegar.com DESP.BA, an online travel company in Latin America. Aug 24 (Reuters) - Major stock markets in the Gulf region rose in early trade on Monday, with the Qatari index boosted by gains in shares of Industries Qatar IQCD.QA after the petrochemicals firm bought a stake in Qatar Fertiliser Co (QAFCO). Qatar's index .QSI added 0.8%, as Industries Qatar surged 6.5%, reaching its highest level since May, after the petrochemical maker bought Qatar Petroleum's 25% stake in QAFCO for $1 billion.
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Waha Capital WAHA.AD rose 1.2%, after the investment firm announced on Sunday an investment of 184 million dirhams ($50.10 million) in Despegar.com DESP.BA, an online travel company in Latin America. Aug 24 (Reuters) - Major stock markets in the Gulf region rose in early trade on Monday, with the Qatari index boosted by gains in shares of Industries Qatar IQCD.QA after the petrochemicals firm bought a stake in Qatar Fertiliser Co (QAFCO). Qatar's index .QSI added 0.8%, as Industries Qatar surged 6.5%, reaching its highest level since May, after the petrochemical maker bought Qatar Petroleum's 25% stake in QAFCO for $1 billion.
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Waha Capital WAHA.AD rose 1.2%, after the investment firm announced on Sunday an investment of 184 million dirhams ($50.10 million) in Despegar.com DESP.BA, an online travel company in Latin America. Aug 24 (Reuters) - Major stock markets in the Gulf region rose in early trade on Monday, with the Qatari index boosted by gains in shares of Industries Qatar IQCD.QA after the petrochemicals firm bought a stake in Qatar Fertiliser Co (QAFCO). Saudi Arabia's benchmark index .TASI firmed 0.2%, with oil giant Saudi Aramco 2222.SE gaining 0.3%, while Al Rajhi Bank 1120.SE was up 0.2%.
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2020-08-21 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q2 2020 Earnings Call Transcript
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DESP
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-q2-2020-earnings-call-transcript-2020-08-21
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Image source: The Motley Fool.
Despegar.com, Corp. (NYSE: DESP)
Q2 2020 Earnings Call
Aug 21, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the Despegar Second
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Despegar.com, Corp. (NYSE: DESP) Q2 2020 Earnings Call Aug 21, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Image source: The Motley Fool.
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Despegar.com, Corp. (NYSE: DESP) Q2 2020 Earnings Call Aug 21, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Image source: The Motley Fool.
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Despegar.com, Corp. (NYSE: DESP) Q2 2020 Earnings Call Aug 21, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Image source: The Motley Fool.
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Despegar.com, Corp. (NYSE: DESP) Q2 2020 Earnings Call Aug 21, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Second Image source: The Motley Fool.
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2020-08-20 00:00:00 UTC
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Pre-Market Earnings Report for August 21, 2020 : PDD, DE, FL, DESP, GASS
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-21-2020-%3A-pdd-de-fl-desp-gass-2020-08-20
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nan
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The following companies are expected to report earnings prior to market open on 08/21/2020. Visit our Earnings Calendar for a full list of expected earnings releases.
Pinduoduo Inc. (PDD) is reporting for the quarter ending June 30, 2020. The internet company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.18. This value represents a 50.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for PDD is -97.90 vs. an industry ratio of 490.80.
Deere & Company (DE) is reporting for the quarter ending July 31, 2020. The farm machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.26. This value represents a 53.51% decrease compared to the same quarter last year. DE missed the consensus earnings per share in the 3rd calendar quarter of 2019 by -3.21%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DE is 30.43 vs. an industry ratio of 19.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Foot Locker, Inc. (FL) is reporting for the quarter ending July 31, 2020. The retail (shoe) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.69. This value represents a 4.55% increase compared to the same quarter last year. FL missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -294.12%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for FL is 12.56 vs. an industry ratio of 15.50.
Despegar.com, Corp. (DESP) is reporting for the quarter ending June 30, 2020. The transportation services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.47. This value represents a 104.35% decrease compared to the same quarter last year. In the past year DESP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00.
StealthGas, Inc. (GASS) is reporting for the quarter ending June 30, 2020. The shipping company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.02. This value represents a 100.00% increase compared to the same quarter last year. In the past year GASS has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 100%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for GASS is 16.93 vs. an industry ratio of 8.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending June 30, 2020. In the past year DESP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending June 30, 2020. In the past year DESP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00. Despegar.com, Corp. (DESP) is reporting for the quarter ending June 30, 2020. In the past year DESP has met analyst expectations once and beat the expectations the other three quarters.
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Despegar.com, Corp. (DESP) is reporting for the quarter ending June 30, 2020. In the past year DESP has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DESP is -10.51 vs. an industry ratio of 10.00.
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2020-08-17 00:00:00 UTC
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3 Stocks to Avoid This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-to-avoid-this-week-2020-08-17
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nan
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I took a look at three stocks to avoid last week, and I was totally off the mark. For the first time since I started this weekly column in early June, the average return of the three stocks I picked ended up beating the market. It wasn't even close. All three stocks moved higher, clocking in with an average gain of 9%. The S&P 500 edged less than 1% higher.
Now that I've been humbled after killing it for nine weeks in a row, let's see if I can get my bearish sixth sense back on track. I see Despegar.com (NYSE: DESP), SeaWorld Entertainment (NYSE: SEAS), and Tesla Motors (NASDAQ: TSLA) as vulnerable investments in the near term. Here's why I think these are three stocks to avoid this week.
Image source: Getty Images.
Despegar.com
Travel portals are hurting these days, and the situation is even more problematic in Latin America, where Despegar.com earns its keep. COVID-19 has been brutal in that region. Five of the nine countries with the highest case counts -- Brazil, Mexico, Peru, Colombia, and Chile -- are in Latin America, so you can probably imagine how well the travel industry is faring there.
Despegar reports quarterly results on Friday morning, and they're not likely to be pretty. The rub for Despegar is that it wasn't doing so hot even before the pandemic. Revenue rose a mere 1% in 2018, only to decline 1% last year.
Analysts are bracing for a widening deficit on a 92% year-over-year revenue plunge, and that could be a conservative take. Guidance isn't likely to be very encouraging, either, leaving one to wonder why this stock has more than doubled since bottoming out in March.
SeaWorld Entertainment
One of my bad calls last week was SeaWorld Entertainment. The theme park operator posted financial results on Monday that were as bad as I expected. Revenue plummeted 95% with its attractions closed through most of the second quarter, and SeaWorld posted a larger-than-expected loss for the fourth time in a row. The market responded by bidding the stock 12% higher for the week. That doesn't seem right.
SeaWorld did offer some encouraging words. Attendance trends improved within a month of reopening. However, with attendance between 10% and 50% of prior-year levels -- and most of the patrons being locals who don't spend as much as tourists -- is this really a great report? Wall Street analysts have been widening their deficit forecasts since last week's report. A week ago, analysts thought SeaWorld could return to profitability as soon as the current quarter. Now they don't see an annual profit until 2022. With its larger rivals already taking defensive steps to combat waning patron interest, this probably isn't the best time to bid up a company that has thrown in the towel on this year by pushing to 2021 all of the major coasters it was supposed to open this summer.
Tesla Motors
A stock split is the hot fashion that all the cool stocks are wearing these days, and Tesla Motors became the latest market darling to announce that it will be participating in this zero-sum stunt. The electric car maker's decision to roll out a 5-for-1 stock split later this month sent the already richly priced shares even higher, soaring 14% last week.
Stocks tend to perform well after a stock split announcement, so history isn't on my side with this call that Tesla could shift into reverse. I just think that Tesla, after nearly quadrupling in 2020, may bump into more resistance than usual ahead of its split at month's end. After all, it's not as if its fundamentals have improved fourfold this year. Revenue even declined in Tesla's latest quarter. The long-term outlook remains bright for Tesla, but sometimes a stock rises too high too soon, and that's why Tesla's my third stock to avoid this week.
If you're looking for safe stocks, you aren't likely to find them in Depegar.com, SeaWorld Entertainment, or Tesla Motors this week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I see Despegar.com (NYSE: DESP), SeaWorld Entertainment (NYSE: SEAS), and Tesla Motors (NASDAQ: TSLA) as vulnerable investments in the near term. Despegar.com Travel portals are hurting these days, and the situation is even more problematic in Latin America, where Despegar.com earns its keep. Despegar reports quarterly results on Friday morning, and they're not likely to be pretty.
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I see Despegar.com (NYSE: DESP), SeaWorld Entertainment (NYSE: SEAS), and Tesla Motors (NASDAQ: TSLA) as vulnerable investments in the near term. Despegar reports quarterly results on Friday morning, and they're not likely to be pretty. Despegar.com Travel portals are hurting these days, and the situation is even more problematic in Latin America, where Despegar.com earns its keep.
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I see Despegar.com (NYSE: DESP), SeaWorld Entertainment (NYSE: SEAS), and Tesla Motors (NASDAQ: TSLA) as vulnerable investments in the near term. Despegar.com Travel portals are hurting these days, and the situation is even more problematic in Latin America, where Despegar.com earns its keep. Despegar reports quarterly results on Friday morning, and they're not likely to be pretty.
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I see Despegar.com (NYSE: DESP), SeaWorld Entertainment (NYSE: SEAS), and Tesla Motors (NASDAQ: TSLA) as vulnerable investments in the near term. Despegar.com Travel portals are hurting these days, and the situation is even more problematic in Latin America, where Despegar.com earns its keep. Despegar reports quarterly results on Friday morning, and they're not likely to be pretty.
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2020-05-04 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q1 2020 Earnings Call Transcript
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DESP
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-q1-2020-earnings-call-transcript-2020-05-04
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nan
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Image source: The Motley Fool.
Despegar.com, Corp. (NYSE: DESP)
Q1 2020 Earnings Call
May 4, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and welcome to the Despegar First Quarter 2020 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investor section of the company's website www.investor.despegar.com. There will be an opportunity for you to ask questions at the end of today's presentation. This conference call is being recorded. As a reminder, all participants will be in a listen-only mode. Now I will turn the call over to Ms. Natalia Nirenberg, Investor Relations. Please go ahead ma'am.
Natalia Nirenberg -- Head of Investor Relations
Good morning everyone and thanks for joining us today for a discussion of our first quarter 2020 results. In addition to reporting financial results in accordance with US Generally Accepted Accounting Principles, we discuss certain non-GAAP financial measures and operating metrics, including foreign exchange neutral calculations. Investors should read the definitions of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation as substitute for or superior to GAAP financial measures and are provided as supplemental information only.
Before we begin our formal remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that maybe beyond the company's control. These include expectations and assumptions related to the impact of COVID-19 pandemic. For a description of these risks, please refer to our filings with the Securities and Exchange Commission and our press release.
Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the first quarter and update you on our strategic priorities. Alberto Lopez Gaffney, our CFO, will afterwards discuss the quarter's financials. After that, we will open the call to your questions. Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia. Good morning everyone and thank you for joining us. First of all, I hope that you and your loved ones are safe and healthy. We are living and operating in a time of considerable uncertainty. The COVID-19 crisis is forcing companies like ours to adapt in order to overcome near-term operational challenges. These are truly unprecedented times. And for that reason, we will take a different approach to our discussion today. Recognizing that the operational backdrop has changed rapidly in the last several weeks, we will spend limited time discussing our first quarter results, and more time discussing how we are responding to the current situation. As we navigate the current uncertainty, we are leveraging the strong foundations we've built over the past several years. This is the information you see on the left side of the slide. Over the past few years, Despegar has made meaningful progress in executing our strategic initiatives. So, while this is an uncertain and challenge time, Despegar has the foundation in place to emerge from it leaner and stronger than ever. We also believe that our key initiatives and strategies are working and will support our future world when we get through this pandemic.
Let me take you through some of the key highlights. We are entering this period of uncertainty from a position of strength. We have a strong balance sheet and an asset-light and profitable business model, as well as have an experienced leadership team. Importantly, we have sufficient liquidity and cash flow to maintain our business and meet our obligations for an extended period of time.
Let's next talk about scale. We are the leading OTA in Latin America and have gained over 300 basis points in market share over the past five years. During the same period, we have delivered a 25% CAGR in local currency gross bookings. We have been able to do this as we have increased our product offering to customers with a particular focus in Hotels, Packages, and Other Travel Products, which accounted in 2019 for 62% of total revenue, an increase of 1,300 basis points during this time period.
Lastly, we have the highest brand awareness in Latin America. Over the past two decades, Despegar has invested over $1 billion building our brand. It is due to our strong brand recognition that close to 70% of our website traffic is unpaid. In other words, we do not have to pay a significant amount of marketing dollars to drive traffic to our site. This strong brand recognition coupled with our leading technology platform has also translated into strong demand for our app, which is the most downloaded travel app in Latin America. We have the largest client base in the region and are confident that we will continue to capture new customers, particularly given the accelerated shift to online purchases that is taking place LatAm triggered by the current stay-at-home policies. These are difficult times for all of us. Since mid-March, many countries have issued travel bans to mitigate the spread of COVID-19. Airplane capacity has been severely reduced and people are practically not traveling either domestically or internationally as most countries are in some form of lockdown around the world.
In terms of our main markets, Argentina has implemented strict stay-at-home policies, banning all air travel, while Brazil and Mexico airports remain open, although operating at significantly reduced capacity. Colombia has also restricted international and domestic travel, while Chile will reopen some domestic routes
In May. We do not know how long these restrictions will last, but we've faced challenges before and we always came out stronger on the other side.
Moving next to how we're currently responding to COVID, this is the info you see on the right side of the slide. The full impact of COVID-19 won't be known for several months. However, what is important right now is that we are proactively managing the immediate challenges. The important points I would like to emphasize are that we will prioritize the health and safety of all Despegar employees and customers, and we will maintain the sustainability of our business. Priority number one, protect the health and safety of our employees. We're taking proactive actions to protect our employees. This includes implementing social distancing protocols and work-from-home policies. Our response continues to evolve in line with best practices and in accordance to the recommendations from the national health authorities and the World Health Organization, whereas our focus is on our customers and doing our best to assist them with adjustments to their travel plan by providing them with the possibility to postpone their trips. We have a culture of innovation and one of the best IT teams in the region. As a result, we were able to quickly adjust our website, adding automation so that our customers could manage their bookings themselves in an effort to support our call centers. Next, ensuring the sustainability of the company. We are prudently managing the business through the near-term volatility, while continuing to strengthen the long-term health of the company. We are accomplishing these in several ways. First, we leant our response for COVID-19 in March and formally established a set of task forces to coordinate our efforts. We are focused on ensuring business continuity and we are developing robust contingency plan to address a wide range of scenarios. Next, we are aggressively reducing all structural and discretionary operating expenses and challenging what is essential and making sure every dollar spent is worthy.
Later in my presentation, I will go over what we are doing on the expected cost savings. It is worth pointing out that we have begun a cost saving program in the first quarter of 2019 and we also took some additional cost-cutting measures early January and February even before COVID-19. The benefits from those early efforts are already apparent in our first quarter 2020 results as our structural costs were down 16% from the fourth quarter of 2019. Now, more than ever, we will continue to stay focused on cash management. We believe we have significant cash on hand to weather the coronavirus impact; $226 million at quarter end.
Lastly, we are currently having positive discussions with Best Day team with respect to the acquisition we announced in January. While it is too early to provide specifics, our expectation is that the final agreement will have significant changes there -- since the original one as we expect to postpone any cash outlays related to this acquisition for at least two years. However, we cannot be assured whether the proposed changes to the purchase agreement will be accepted. A failed negotiation may trigger a cancellation of the deal. The situation continues to evolve so rapidly that it's difficult to predict the future with much certainty. While comparisons can certainly be drawn to weather-related disruptions or natural disasters, or recessions, the reality is that we have never seen the current scenario on such a global scale. Nevertheless, we are committed to being transparent about what we are seeing in the marketplace and what we're doing to respond. We will continue to be forthcoming as we navigate this uncharted territory and we believe we will have more visibility in the coming months as the situation stabilizes.
Moving next to a quick overview of first quarter transactions and gross bookings. Over time, we have been able to successfully increase both total transactions and gross bookings while gaining market share. We have been able to accomplish these despite sometimes challenging macro conditions in Latin America by adjusting opportunistically our business model and adding more products and services for our customers. We are now being impacted by an unprecedented global health crisis. As you can see in this chart, total transactions were down 23% in the quarter with Packages, Hotels and Other Travel Products decreasing faster than the Air transactions. Total Packages, Hotels and Other Travel Products transactions were down 28% in the quarter on a reported basis and accounted for 40% of total transactions, while Air transactions declined 20% in the period. Gross bookings decreased 19% on an FX neutral basis. As reported, gross bookings were down 32%, reflecting the impact of COVID-19 on global travel. Weaker demand in Argentina as well as some pull ahead of bookings in fourth quarter 2019 in anticipation of the new tax imposed from toll outside the country, and lastly, the depreciation of the Brazilian real. The largest impact to our business occurred in the second half of March at the time most global economies shut down. In turn, we saw a 95% decrease in gross bookings in this period compared to the second half of March of the prior year. Unfortunately, we expect that trend to continue throughout the second quarter.
Turn now to Page 5 for a more detailed discussion as to how we are reducing costs and the associated benefits projected for the next two quarters. This is a global pandemic. Each country is preventing the outbreak of the virus differently, and accordingly our markets will progress through these and recover on different timelines. These add some complexity from a geographic point of view. We have been aggressive in cost take-out in light of the impact that the crisis is having in our revenue. We define structural costs as the fixed portion of our cost of revenue and operating expenses. These will include items such as the fixed portion of the call center spend that remains after outsourcing the operation, the fixed portion of selling and marketing, primarily personnel, G&A as well as tech and product development. We do not include non-cash items such as depreciation and impairment and other costs associated with severance packages and the announced acquisition of Best Day. To address the anticipated impacts of COVID-19, we are taking steps to ensure that costs remain aligned with the decrease in demand. Let me detail some of the main measures we have already taken to lower structural costs and support our free cash flow. First, we've temporarily reduced salaries of the Executive Committee, Board of Directors and senior management by 50% and middle management by 25%. This reduction will stay in place through the second quarter of 2020. We also eliminated first half of 2020 bonuses to all employees and we are limiting inflation salary increases. Next, to better match staffing levels with demand activity, we have implemented a hiring freeze, have reduced part of our workforce, reduced working hours and implemented unpaid leave in certain locations. Third, we acquired Viajes Falabella last year and are moving ahead with the consolidation of the business and accelerating the capture of synergies. Fourth, we are attacking all discretionary operating expenses and are challenging what is essential and making sure every dollar spent is appropriate. We are also taking a similar approach with our suppliers. This is an important area to effectively manage as we look to improve terms and conditions. Likewise, we are reviewing all contracts and commitments. Last, we have post [Phonetic] all capital spend other than what is absolutely essential or has already been committed. By moving quickly and decisively, we are avoiding unnecessary spend and are gaining maximum flexibility for the second half of the year as we see more clarity on the outlook. Now, what does these all translate into?
On the left side of the slide, we have provided a bar chart showing the progression of our estimated structural costs. We have already realized a 16% reduction from fourth quarter 2019 to the first quarter 2020. This was driven by the restructuring implemented in the fourth quarter and the outsourcing of our call center in January 2020, which resulted in a more by-all [Phonetic] customer care cost structure. By the third quarter of this year, we anticipate our structural costs to be 45% lower than year-end 2019. Importantly, this is based on a zero revenue scenario. We've been nimble in response to the developing situation. We will continue to drive costs as low as necessary to mitigate the profitability pressure from lower revenues. But we will be deliberate and thoughtful about how we do this, so we do not undermine core capabilities and the enablers that have driven our success over the last few years.
Moving to Slide 6 for a discussion of our liquidity position. We are prudently managing our strong balance sheet and liquidity position in this environment. At the end of the first quarter, we had $226 million in cash, cash equivalents and restricted cash on our balance sheet and no long-term debt. Our short-term debt of $17.5 million at quarter end was lower by close to $2 million sequentially. As of March 31, 2020, our total net operational short-term obligations amounted to $52.9 million, down for a net aggregate payable of $120 million at year-end 2019. We are also implementing a series of measures to assist customers with refunds and rescheduling, including issuing vouchers that our customers can use during this year or in some cases early next year.
We will continue to evaluate the situation moving forward and plan to prioritize cash utilization to meet our liquidity needs. Our strong free cash flow and healthy balance sheet continue to remain a core strength and a competitive advantage in these uncertain times.
Now on the cost side. As a result of the measures I just spoke about on the previous slide, we currently anticipate that the run rate for structural costs for this year as compared to 2019 will continue to improve with full savings expected by Q3 2020. We estimate that the run rate for structural costs will be approximately $34 million in second quarter of 2020 and approximately $28 million by the third quarter of 2020. In addition, from a cash flow perspective, savings associated with our capex reductions will add to our liquidity buffer. These measures are all part of our balanced approach to address the impact of the pandemic and are aimed at supporting our free cash flow in 2020 as we navigate through these uncharted waters. While we feel there is too much uncertainty at this point to provide a reasonable estimate for the full-year financial impact that is related to COVID-19, we want to provide reassurance that we're being both proactive and agile in managing our financial position as the pandemic unfolds.
I will now turn the call over to Alberto to discuss first quarter results as well as further comment about COVID and how we are responding.
Alberto Lopez Gaffney -- Chief Financial Officer
Thank you Damian and thank you all for joining us today. Let me echo what Damian said. I hope you, your family and colleagues are all safe and well. I will start with highlights from our first quarter results, including the impact from COVID-19 and then pivot to expectations for financial performance moving forward in light of the evolving pandemic. We experienced a decline in transactions and gross bookings across key markets, both as reported and on an FX-neutral basis, reflecting travel disruptions worldwide driven by travel bans and lower demand due to COVID-19 started in the second half of March. This was further exacerbated by currency volatility, particularly in Argentina and Brazil.
In Brazil, we saw year-on-year declines of 18% in transactions and 18% in FX-neutral gross bookings, driven by COVID-19 and an overall industry contraction. While FX-neutral ASPs remain unchanged, the 18% depreciation of the Brazilian real led to a low-double digit drop in as-reported ASPs and a 29% decline in as-reported gross bookings.
Moving to Argentina, transactions and FX-neutral gross bookings were down 47% and 33% respectively year-on-year. In addition to the complete lockdown that began in mid-March as response to COVID-19 outbreak, demand was impacted by the overall recessionary environment as well as a new 30% duty on residents international travel spend that became effective toward the end of last year. This resulted in advanced travel purchases in fourth quarter '19 as well as lower demand for international travel in the first quarter. As-reported gross bookings were down 58%, in line with 58% peso depreciation.
Finally, for the rest of Latin America, we saw year-on-year declines of 14% in transactions and 12% in FX-neutral gross bookings. On an FX-neutral basis, ASPs were up 3%, mainly driven by a better performance in packages in Mexico, Colombia and Chile. As-reported ASPs were down 4%, while gross bookings fell 17% in the period.
Now moving on to the P&L on Slide 8. FX-neutral revenues were down 34% year-on-year in the quarter. In addition to the significant impact of the global health crisis on overall travel demand on our business, weather-related factors also contributed to the sharp drop in revenues, which were offset by the revenue contribution of Viajes Falabella. First, customer refunds reflecting cancellation in the quarter. Second, in this quarter, we also provisioned for anticipated customer refunds for the second quarter. And in the case of Argentina, cancellations were provisioned until September 1 due to the recent ban in Air purchases before that date. Lastly, we also lowered customer fees and provided other incentives to drive demand in this tried environment.
Importantly, despite this difficult environment, we were able to monetize the bookings made in the quarter. Comparable revenue margin, excluding the impact from actual and cancellations allowance, would have been 11.2%, compared with 11.5% in the year ago quarter.
Now, please turn to Slide 9. As you can see on the three charts on this stage the measures taken in fourth quarter '19 to further streamline operations in support areas as well as fulfillment centers along with initiatives rapidly implemented in the first quarter to adjust our cost basis to these unprecedented market dynamics are already starting to drive important cost reductions across the business. Starting with cost of revenue, which was down 26% year-on-year. In addition to the drop in transactions in the second half of March, cost of revenues benefited from the outsourcing in early January of a significant portion of our customer service activities, in addition to the restructuring implemented in the fourth quarter of last year. As a result of both these actions, on a per transaction basis, cost of revenue declined to $16.0 from $17.1 in the first quarter '19. Also note that cost of revenue is fully available [Phonetic], except for fulfillment center costs. Therefore, we expect to see a further absolute drop in this line item while the impact of COVID-19 on travel persists.
Next, sales and marketing. It declined 22% year-on-year, reflecting the cancellation of all direct marketing spend since March 13. On a per transaction basis, sales and marketing increased 65 basis points year-on-year, reflecting the inclusion of Viajes Falabella marketing costs and allocation of structural marketing costs for lower number of transactions. However, this was 150 basis points below comparable levels for full 2019. In addition to direct marketing, selling and marketing expenses also include fixed marketing costs, which are part of the structural costs that we expect will be further reduced, driven by the reorganization implemented in April. Finally, tech and content and G&A costs declined 11% year-on-year. Excluding costs associated with Viajes Falabella and severance expenses for the business reorganization implemented this quarter, tech and content expenses would have been 26% lower in the period. We expect to see further reductions in both tech and content and G&A from the cost savings initiatives implemented in April. These cost savings and synergies are anticipated to become more apparent in the coming quarters and contribute to further increase the flexibility of the company's cost structure. All in all, we expect that this restructuring will drive Despegar cost structure with just 30% of fixed costs measured on 2019 activity levels.
Moving on to profitability on Slide 10, comparable adjusted EBITDA was a negative $1.4 million compared with a positive $15.2 million in the prior year quarter. Comparable adjusted EBITDA excludes $14.2 million in the following extraordinary charges: exceptional cancellations due to COVID-19 for March; provisions for Q2 across the region; provisions for Argentina until September 1; and non-recurring restructuring charges.
Please now turn to Slide 11. We closed the quarter with a solid balance sheet and healthy liquidity to support our operations. Cash and equivalents at the end of March, including $4.3 million in restricted cash, amounted to $225.9 million. Additionally, we have minimal working capital related debt. In terms of cash flow, we reported a $68.2 million use of operating funds, reflecting lower sales and profitability given the disruption from the COVID pandemic. Importantly, in the quarter, we canceled a significant portion of the tourist payables position we had at year-end 2019, which explains the $134.6 million investment in working capital in the quarter.
Remember, the seasonality of our business has a natural impact on the first quarter of each year. However, given this unprecedented crisis, this seasonal effect was not offset by relevant new sales in the first quarter 2020. On the other hand, our receivables balance increased by $80.6 million, bringing our net aggregated operational payable position to only $52.9 million. We believe our cash position together with expected cash flows from operations are sufficient to meet our currently anticipated cash needs beyond the next 12 months. Moving next to Page 12 for a wrap-up. We closed first quarter 2020 with a minimal level of activity beginning in the second half of March, reaching our year-over-year contraction of over 95%. April has shown a similar performance, which we expect to continue throughout Q2 2020. While the unexpected global economic shock has been felt across all our countries, we are responding accordingly and our teams are focused on three objectives: number one, we are adjusting to the current operating environment and staying vigilant in our short-term scenario planning; number two, we are maintaining our long-term strategic focus; and number 3, we are focused on emerging from this period with our business leaner and ready to ramp up as travel demand recovers.
Now, I would like to conclude with a few important messages. First, we are confident in the strength, the resilience and the overall health of our company. We will successfully navigate this pandemic. We have a strong balance sheet and sufficient liquidity and cash flow to maintain our business and meet our obligations for a prolonged period of time. Second, we have a proven low-cost operating model. We will manage our cost base to respond to market conditions and be able to quickly adjust to higher demand upon a normalization in our markets. Third, we already adapted quickly to the current environment, while also best positioning ourselves to win in the post-COVID world. While this will be a challenging time with significant uncertainty, we will be focused on managing what is within our control and to mitigate the impact to the degree possible. And with our higher variable cost structure, we can accommodate a slow ramp-up. Fourth, while we are highly focused on managing through the pandemic, we are also continuing to advance strategic initiatives that will be critical levers for us to drive the business going forward. To that end, we are currently in discussions with Best Day with a goal to minimize or eliminate cash outlays until 2022. Last, despite these near-term pressures, we see the potential for the post-crisis environment to positively impact our business. The current restrictions in our markets are temporary. Over the coming months, they will likely change and eventually we will return to a more normal operating environment. Our adaptive operating model and focus on the customer journey will help us forge relationships with customers allowing for sustained long-term growth.
As we look ahead, we expect the environment to remain volatile as COVID-19 pandemic and consumers' financial security both evolve, and we remain confident in the strength and resiliency of our brand over the long term, and our talented leaders and employees, who are executing against our strategies, reacting to current changes and capitalizing on the opportunities that this context presents.
This ends our prepared remarks. Operator, please open the lines for questions.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. [Operator Instructions] And today's first question comes from Rodrigo Nistor with Itau. Please go ahead.
Rodrigo Nistor -- Itau -- Analyst
Hi, good morning and thank you for taking my question. So my first question is regarding cash burn in next few quarters. I know you released an estimate of structural costs, but I would like to have, if possible, a bit more color on your short-term obligations, when are they due, will you be able to extend maturities and whatever color you can provide on that, that would be helpful. Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Rodrigo, Alberto here. Good morning. The short-term obligations the company can be pretty much, let's say, put in two buckets; one what we call the net operating liabilities and this is payables minus receivables. The balance we have over there that actually spans for the next year is $52.9 million. While we are doing -- there is -- clearly, we are adjusting in most cases the terms and conditions of the travel that our clients have purchased. In many cases, we are actually providing vouchers for usage later on in the year, let's say, third quarter, fourth quarter when we actually expect particularly in the beginning of 2021 that travel should be truly quite open. And we also, like of course, as you might imagine, in most cases, even adjusting positively to our clients and if not, we're just like -- just sticking to sizing [Phonetic] the terms of conditions of the tickets and giving the money back to our clients in those times, you know. So again, this would be an impact on the company's cash resources that will actually start coming down over the next 12 months. There is only another piece of short-term obligations we have, that is fully backed by our receivables. That is debt that we have taken in Chile, in particular, although we have close to $17 million of debt that as said before is backed by receivables, so we pay down as we actually collect our receivables. So beyond that, the company has no other short-term obligations. So as you note, short-term obligations are just a small portion of the cash and equivalents the company has.
Rodrigo Nistor -- Itau -- Analyst
That was very helpful. Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
You're welcome Rodrigo.
Operator
And our next question today comes from Edward Yruma with KeyBanc Capital Markets. Please go ahead.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Hi, good morning and thanks for all the very helpful details. I guess first, I know that you historically take some forward position on Air inventory and hotel inventory. I think some relates to packages. I guess is there any kind of remaining obligation forward and have you been able to ratchet down that capacity? And then second, any commentary -- and I know that you have a lot of credit partners, but any commentary on the performance of your existing customers from a credit perspective and just remind us if there is any default risk or delinquency risk that you bear? Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Sure. And Alberto jumping in the queue again. And with regards to the second part of your question, as you recall, our business model, we are not exposed to credit risk from our clients. So from that perspective, we feel very comfortable and we do not expect to see an impact on Despegar. And we are also -- as you know the company does have receivables, receivables with actually its supplier network, and depending on -- and those receivables are pretty much -- those exposures are pretty much either on receivables and also on sold-not-long [Phonetic] tickets. Okay? Like so far, we have not seen any deterioration of those metrics. But again, we need to continue monitoring that carefully, but again let me stress -- but again that we don't have credit risk when it comes to our clients.
On the first part of your question, yes, as you might recall, we have been advancing on the strategy on having more inventory. However, and very importantly, today, the inventory of the company is close to zero. So we have very much immediately adjusted those inventory levels and actually decreased them to close to a zero level. So there's nothing material to report when it comes to inventory that we hold on our balance sheet.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Great. Thank you very much.
Operator
And our next question today comes from Eric Sheridan with UBS. Please go ahead.
Eric Sheridan -- UBS -- Analyst
Thanks so much for taking the question. Maybe two if I can. One in terms of thinking about the demand side of the equation and I how it might come back, how are you thinking about domestic travel versus out-of-region travel? And are you aligning any of your initiatives on the inventory side, on the marketing side, to sort of take advantage of the way you think this unwinds on the other side of COVID-19? That's number one.
Number two, [Indecipherable] update on the relationship between the company and Expedia and some of the obligations that exist under that relationship and how they might evolve in this environment. Thanks so much.
Damian Scokin -- Chief Executive Officer
Hi, Eric. This is Damian here. Thanks for your question. In terms of the demand side, I think we expect that demand [Indecipherable] initially be more concentrated toward domestic travel and obviously we're already working in terms of our inventory and our site features in order to be ready for that keeping in mind that in all countries, our share of the domestic travel is generally larger than international travel. So we feel that we'll be well positioned to take advantage of that context when demand returns.
As far your second question regarding Expedia, the relationship evolves -- I mean has continued to be the same as usual. We have a contract obligation as you know from them our hotels outside Latin America and we are working with them to adapt that relationship and the contract to the current situation, but we are cooperating very effectively I would say.
Eric Sheridan -- UBS -- Analyst
Great. Thanks so much.
Operator
[Operator Instructions] Today's next question comes from Kevin Kopelman of Cowen. Please go ahead.
Emily Lavin -- Cowen -- Analyst
Hi, good morning. This is Emily on for Kevin. I was just wondering if you could update us on your current cancellation policy. Do you offer customers the option of travel credit or full refunds? And given a lot of your customers paying installments, could you help us understand the mechanics of those refunds? Thanks.
Alberto Lopez Gaffney -- Chief Financial Officer
Sure Emily. And -- Alberto, and -- so the cancellation policies are pretty much the ones that are actually included and actually available for our clients the minute they actually purchase their tickets online now. So we take a lot of, let's say, caution on our clients having readily available information on the terms of what they have purchased. Having said that, we have been working strongly with our suppliers to try to adjust, in the benefit of our clients, the terms and conditions of their contracts in all cases that that was possible. So in such a scenario, for argument sake, we have to adjust our non-refundable ticket to our refundable one. Okay? We are allowing those clients to actually defer their travel purchases and actually get through vouchers access to similar alternatives later on in the year, fourth quarter 2020, first quarter 2021, that as you know in South America, those two quarters are peak when it comes to travel. And we -- on actually the cancellation policy, when it comes to a P&L impact, OK, we have included on our earnings release a $12.5 million on either [Phonetic] actual cancellations in Q1 and provisions for cancellations that will extend throughout Q2, and in some cases, in particular, in Argentina, that will also extend even into a relevant portion of Q3. So we have already, let's say, provisioned the impact of what cancellations we have on our P&L from that perspective. So I'll pause for a minute here and see you have any follow-up questions on this.
Emily Lavin -- Cowen -- Analyst
No, that's very helpful. Thank you.
Operator
And ladies and gentlemen, this concludes the question-and-answer session. I'd like to turn the conference back over to Damian Scokin for any final remarks.
Damian Scokin -- Chief Executive Officer
Well, I would like to thank all for joining in this particularly challenging context and I would like also to invite you to our next call, and thank you very much for being part of the conference today. Looking forward to seeing you again on our next call. Bye.
Operator
[Operator Closing Remarks]
Duration: 48 minutes
Call participants:
Natalia Nirenberg -- Head of Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Rodrigo Nistor -- Itau -- Analyst
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Eric Sheridan -- UBS -- Analyst
Emily Lavin -- Cowen -- Analyst
More DESP analysis
All earnings call transcripts
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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Despegar.com, Corp. (NYSE: DESP) Q1 2020 Earnings Call May 4, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar First Quarter 2020 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investor section of the company's website www.investor.despegar.com.
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Operator [Operator Closing Remarks] Duration: 48 minutes Call participants: Natalia Nirenberg -- Head of Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Rodrigo Nistor -- Itau -- Analyst Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Emily Lavin -- Cowen -- Analyst More DESP analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q1 2020 Earnings Call May 4, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar First Quarter 2020 Earnings Call.
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Operator [Operator Closing Remarks] Duration: 48 minutes Call participants: Natalia Nirenberg -- Head of Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Rodrigo Nistor -- Itau -- Analyst Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Emily Lavin -- Cowen -- Analyst More DESP analysis All earnings call transcripts {%sfr%} 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q1 2020 Earnings Call May 4, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar First Quarter 2020 Earnings Call.
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Despegar.com, Corp. (NYSE: DESP) Q1 2020 Earnings Call May 4, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar First Quarter 2020 Earnings Call. A slide presentation is accompanying today's webcast and is available in the Investor section of the company's website www.investor.despegar.com.
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728660.0
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2020-03-07 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 3/7/2020
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DESP
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-3-7-2020-2020-03-07
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Despegar.com Corp is an Argentina-based online travel company. It provides a broad suite of travel products, including airline tickets, travel packages, hotel bookings and other travel products. It organizes its business into two segments: Air, which consists of the sale of airline tickets, and Packages, Hotels and Other Travel Products, which consists of travel packages, as well as stand-alone sales of hotel rooms, car rentals, bus tickets, cruise tickets, travel insurance and destination services. The Company's one-stop marketplace enables millions of users to find, compare, plan and easily purchase travel services and products through its websites and mobile apps. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand. It operates in Latin America across 20 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
XUNLEI LTD (XNET) is a small-cap value stock in the Software & Programming industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Xunlei Limited (Xunlei) is a cloud-based acceleration technology company. The Company operates an Internet platform in China based on cloud computing to enable users to access, manage and consume digital media content. The Company's segment is the operation of its online media platform. The Company's products and services include Xunlei Accelerator, which enables users to accelerate digital transmission over the Internet, and cloud acceleration subscription services, which offer user services for speed and reliability. The Company's Xunlei Accelerator allows users to accelerate digital transmission over the Internet. Xunlei Accelerator also bridges users with diverse needs to other services it offers, such as Xunlei Media Player, which supports both online and offline video watching, and its various online games, including Web games and massively multiplayer online games (MMOGs), by recommending and providing links to these services on its user interface.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
EL POLLO LOCO HOLDINGS INC (LOCO) is a small-cap growth stock in the Restaurants industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: El Pollo Loco Holdings, Inc. specializes in fire-grilling citrus-marinated chicken and operates in the limited service restaurant (LSR) segment. The Company's menu features its signature product, citrus-marinated fire-grilled chicken, and a range of Mexican-inspired entrees that it creates from chicken. Every day in every restaurant, the Company marinates and fire-grills its chicken over open flames, and hand-slices whole tomatoes, avocados, serrano peppers and cilantro to make its salsas, guacamole and cilantro dressings from scratch. The Company also offers burritos, salads, tostadas, bowls, stuffed quesadillas and chicken entrees. The Company's entrees include Chicken Avocado Burrito, Under 500 Calorie entrees, Ultimate Pollo Bowl, and Stuffed Chicken Avocado Quesadilla. As of December 28, 2016, the Company had 460 restaurants, consisting of 201 Company-operated and 259 franchised restaurants. The Company also offers additional proteins, such as shrimp, carnitas and beef.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
G WILLI-FOOD INTERNATIONAL LTD (WILC) is a small-cap value stock in the Food Processing industry. The rating according to our strategy based on Kenneth Fisher changed from 68% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: G. Willi-Food International Ltd. is a holding company. The Company is engaged directly and through subsidiaries, in the development, import, export, marketing and distribution of a range of over 600 food products around the world. The principal products in the import segment product line include Canned Vegetables and Pickles, Canned Fish, Canned Fruit, Edible Oils, Dairy and Dairy Substitute Products, Dried Fruit, Nuts and Beans, and Other Products. Its brands include Willi-Food, Gold-Frost, Gold Food, Tifeeret, Donna Rozza, Completa, Raskas and Del Monte, among others. The Company's products are marketed and sold to approximately 1,500 customers throughout Israel and outside of Israel. The Company's customers generally fall within one of the two groups, including retail supermarket chains in the organized market, and private supermarket chains, mini-markets, wholesalers, food manufacturers, institutional consumers, such as catering halls, hotels, hospitals and food producers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CHINA MOBILE LTD. (ADR) (CHL) is a large-cap value stock in the Communications Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses, Wireline Broadband businesses and Internet of Things (IoT) businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
COSTCO WHOLESALE CORPORATION (COST) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States and Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Australia, Spain, and through its subsidiaries in Taiwan and Korea. As of August 28, 2016, the Company operated 715 warehouses across the world. The Company's average warehouse space is approximately 144,000 square feet. The Company's warehouses on average operate on a seven-day, 70-hour week. The Company offers merchandise in various categories, which include foods (including dry foods, packaged foods and groceries); sundries (including snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies); hardlines (including appliances, electronics, health and beauty aids, hardware, and garden and patio); fresh foods (including meat, produce, deli and bakery); softlines (including apparel and small appliances), and other (including gas stations and pharmacy).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
NATIONAL-OILWELL VARCO, INC. (NOV) is a mid-cap growth stock in the Oil Well Services & Equipment industry. The rating according to our strategy based on Kenneth Fisher changed from 40% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: National Oilwell Varco, Inc. (NOV) is an oilfield equipment manufacturer and technology provider. The Company operates through four segments: Rig Technologies, Wellbore Technologies and Completion & Production Solutions. The Rig Technologies segment designs, manufactures, sells, and supports land rigs, offshore drilling equipment packages, and drilling rig components. The Wellbore Technologies segment designs, manufactures, rents and sells a range of equipment and technologies used to perform drilling operations. The Completion & Production Solutions segment integrates technologies for well completions and oil and gas production.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Kenneth Fisher has returned 305.40% vs. 199.00% for the S&P 500. For more details on this strategy, click here
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand.
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DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand.
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DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand.
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DESPEGAR.COM CORP (DESP) is a small-cap value stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based online travel company. The Company owns and operates two brands: Despegar, its global brand and Decolar, its Brazilian brand.
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efe8ce45-6370-4da3-9cb5-300f4d2016a6
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728661.0
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2020-03-05 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q4 2019 Earnings Call Transcript
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DESP
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-q4-2019-earnings-call-transcript-2020-03-05
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Image source: The Motley Fool.
Despegar.com, Corp. (NYSE: DESP)
Q4 2019 Earnings Call
Mar 5, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and welcome to the Despegar Fourth Quarter 2019 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available in the Investors Section of the company's website www.investor.despegar.com. There will be an opportunity for you to ask questions at the end of today's presentation. This conference call is being recorded. As a reminder, all participants will be in a listen-only mode. Now I would like to turn the call over to Ms. Natalia Nirenberg, Investor Relations. Please go ahead.
Natalia Nirenberg -- Investor Relations
Good morning everyone and thank you for joining us today for our discussion of our fourth quarter 2019 results. In addition to reporting financial results in accordance with US Generally Accepted Accounting Principles, we discuss certain non-GAAP financial measures and operating metrics, including foreign exchange neutral calculations. Investors should read the definitions of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation as substitute for or superior to GAAP financial measures and are provided as supplemental information only.
Before we begin our formal remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that maybe beyond the company's control. For a description of these risks, please refer to our filings with the Securities and Exchange Commission and our press release.Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the fourth quarter and update you on our strategic priorities. Alberto Lopez Gaffney, our CFO, will afterwards discuss the quarter financials and our outlook for the next quarter. After that, we will open the call for your questions. Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia. Good morning everyone and thank you all for joining us. On today's call, first, I will describe the context in which we closed 2019 after making significant progress on developing a strong competitive position. Second, I will update on Q4 progress on such initiatives and third and last, how they are being reflected in our financial results.
Following my comments, I will turn the call over to Alberto for review of our financial and operational highlights of the quarter, as well as our outlook for the first quarter. Then we will take your questions.
Fourth quarter and full-year 2019 were both challenging and I am pleased with the progress we made executing against our strategy. Let me start by discussing how this year actions tied to our core competencies described during our Investor Day in December. First, we win value proposition for customers and partners. In 2019, we focus our efforts on developing a fair value proposition for our customers, which entails more to-do [Phonetic] benefits.
We have developed a strong portfolio of negotiated rates, we have become a more customer-centric company accompanying the clients through every step of the travel journey and we have developed a broad set of payment alternatives.
On the partners front, we are the clear partner of choice when [Indecipherable] company look for a robust travel-related partner in the region. Examples are many. We will go through some significant ones in the next few slides.
Second, efficient customer acquisition and retention. Due to our continuous investment in branding, we have had many achievements that have not only helped us to better navigate the current industry challenges but also provide us with better margins. A 69% of our traffic comes from unpaid sources.
Importantly, in Q4, 42% of our transactions were done through our mobile platform, which is a more cost efficient and promotes loyalty among our customers.
Third, best-in-class digital product. To maintain our leading position, we know that the user experience has to be exceptional. In this regard, in 2019 [Phonetic] we deployed over 4,600 initiatives that allow us to develop cutting edge capabilities such as gross channel interfaces, bundling abilities and the offering of differentiated shopping experience by segment.
Fourth, rapid as a patient to local market. Local customers allows us to be the first option when a customer is beginning their travel journey as we know and understand what they are looking for.
Hence, we can meet their expectations. We can do this, thanks to our strong local prices as it allow us to react to market dynamics quickly through the creation of agro commercial events.
During 2019, we invested in strengthening our teams in Brazil and Mexico, our portfolio of banking relationships, allowing Despegar to maximize its local impact. Additionally, the understanding of the local markets customers allows us to create a loyalty program that fits the aspirations of the Brazilian customer.
Fifth, low cost delivery model uniquely suited for Latam. Technology allows us to have streamline processes with banks and financial institutions. As a result, we can offer a wide variety of payment solutions to our customers. Additionally, having such processes also translates into extremely low buy failure rates on our side and low cost endeavors [Phonetic].
By way of example of what we have achieved on the payment front in the Argentina region 21% of sales are completed through alternative payment methods. Also we are the only platform that offers Boleto Parcelado purely online in Brazil.
Six, strong financial position to lead industry consolidation. Our strong balance sheet has provided us the flexibility to rapidly adjust to change in macro conditions, as well as to pursue selective acquisition players such as Viajes Falabella and Best Day.
Lastly, we have opportunistically repurchased shares as we felt that pricing that fully reflect the long-term value we see for the company.
Moving next to Slide 4. Throughout 2019 and to-date in 2020, we have continued strengthening our competitive levers. Most importantly, we've expanded our geographic reach and cross platform presence as we announced our decision of Best Day earlier this year. I will discuss this later in my presentation. Also we agreed to develop a new white label through a commercial agreement with Tarjeta Naranja in Argentina. We will continue to drive growth in sales of higher margin packages hotels and other products, each accounting for a greater percentage of our total sales.
Year-over-year, we've grown 18% in package transactions. We opportunistically increased our customer fees in the quarter, helping to drive revenue growth. In turn, we gained market share in street facing [Phonetic] market.
Third, we have also made progress on our mobile strategy, increasing 466 basis points our percentage of sale from our mobile app.
Fourth, we are focused on continuing to provide an excellent value proposition for our customers. To that end we launched our loyalty program in Brazil during the fourth quarter. And subsequent to quarter end, we launched our co-branded credit card with Banco Santander in Brazil. Overall, we are encouraged with the progress we have made in successfully executing on our key strategic initiatives. Even when we take into account the volatile macro environment, we have been operating in -- during the past two years.
Moving next to a discussion of transactions and gross bookings on Page 5. The fourth quarter was not without these challenges, including social unrest in Chile, which curtailed travel to and from that country and the ongoing recession in Argentina. The implementation by the Argentine government of the new 30% tax on international travel purchases also impacted gross bookings in that country.
The impending start date of this tax in Argentina led customers to accelerate their travel purchases a share of this tax implementation, driving strong growth in transactions in that country. I think, we have been able to do successfully in the past, we were also able to make adjustments to respond to this changing market condition and opportunistically act on our business levers, continuing into a strong increase in gross bookings and revenues in Argentina.
Total transactions were up 7% in the quarter with air transactions and packages, hotels and other travel products increasing 6% and 7% respectively year-over-year. The growth in non-air was driven by an 18% increase via stand-alone packages. Once again, our fastest growing product. This key strategic initiative is also benefiting from the Viajes Falabella acquisition and while the Best Day acquisition is closed, we expect this to be an important contributor as well. Gross bookings increased 26% on an FX neutral basis as reported growth bookings were up 6%. This better than industry performance is reflective of the success we are having by staying focused on our key strategic initiatives, even as we face challenging market conditions.
Moving next to Page 6, where I will discuss some of our recent business initiatives. The significant event for us during the fourth quarter was our first Analyst Investor Day where we outlined an acquisition criteria and our key strategic initiatives. Since then, we have been very busy and the New Year has only just begun. On the next two slides, I am going to discuss a few of our recent events and how this further improves our strategy.
Starting with Best Day. This will be our second largest acquisition to-date, as we have already held a conference call to discuss the transaction, on this slide, you can see the key points about Best Day.
Today, I will discuss how this fits into our overall strategy. As outlined at the Investor Day, Mexico and Brazil are key focus markets for us. On the B2C front, Best Day is the second most recognized travel brand in Mexico, after the sale. So not only we could expand into an important market, but we will also be acquiring a well-recognized brand, further strengthening our leadership in terms of brand awareness. We will also gain approximately 190 kiosks as we continue to build out our cross-platform.
The company's strategic fit with Despegar is extremely high. Best Day's B2C business model is in line with Despegar. Best Day is primarily an online company with approximately 70% of sales generated from this channel and 95% of revenue is generated from Taj Hotels and Other Travel Products. Additionally, we are very excited about gaining expertise in destination services and ground transportation from Best Day and potentially rolling this out to other markets where we already are seeing the high profit growth.
Well, with regard on Best Day, have growing B2B business with very little mobile app providing the opportunity for both companies to leverage each other's strengths. Best Day's B2B business is largely a white label services web platform for major travel vendors and online hotel aggregator, servicing travel agencies worldwide. This is a unique core competitor at Best Day. Taking into account Despegars' already strong presence and product offering and combining investor expertise in in-destination services and wholesale hotel offerings, we are clearly enhancing our value proposition.
Similarly, at the Investor Day, we also spoke about our company delevers. Let me talk about how Best Day will further strengthen them.
First, our value proposition to customers will enhance and increase our inventory and add new capabilities and product offerings. Second, we gained instant legal local market knowledge of the key Mexican market particularly related to in-destination services. And third, Best Day will benefit from Despegar's low-cost delivery model which is customized to meet the unique need of the LatAm Travel, further leveraging Despegar's operating scale.
We are extremely pleased with this acquisition. Not only that, Best Day complement our existing business, it provides growth opportunities via new products and services.
Additionally, we expect to achieve operational synergies. This is a significant milestone in our consolidation strategy and in our vote to continue expanding our operations in Mexico.
Moving next to Slide 7, where I will discuss two recent commercial agreements. Partner of Choice, being known as such is strategically important for us, we have spent over two decades investing in building our brand and evolving into a leading OTA in LatAm. This leadership position is not going unnoticed by other leading companies and we are the Partner of Choice when they are looking to balance and enhance their products or services to customers, which is the same for us.
During the fourth quarter, we launched Passaporte Decolar, our loyalty program in Brazil, our largest mark. Passaporte Decolar has many unique characteristics versus our loyalty program. Some of the key advantages include, first [Phonetic] belong to the buyer and not to the passenger, allowing for faster point accumulation in a single account. Bonds can be converted into any product that is part of the extensive inventory sold at this payout. There are no blackout dates. Recently, we improved the loyalty benefits even further by partnering with Santander and Visa Despegar to make a co-branded credit card and adding even more benefits to our loyalty members.
Using the co-branded card, loyalty members can accumulate points three ways with one purchase, on the credit card to purchase at Despegar [Phonetic] and with airline hotel membership program. Additionally, utilizing our strong IT capabilities, we were able to make signing up for these new cards as simple as one pick on our website.
Even before making this product travel purchase, our Loyalty Program has been well received by customers. And to-date, we have already accumulated more than 430,000 members in Brazil. Given the success of the program, we plan to introduce it across our other key markets over time.
As a quick note, we have included links in the powerpoint presentation with a short video showing how easy it is for customers to obtain the co-branded cards with Santander and [Indecipherable] in our website.
Additionally, the commercial agreement I want to talk about Tarjeta
Naranja. This a 10-year agreement with Tarjeta
Naranja which is a leading branding proprietary credit card issuer in Argentina and a subsidiary of Grupo Financiero. We will provide a white label online marketplace to Naranja to jointly still [Phonetic] our current products. We gained access to over five million potential new customers that were not our natural customer base. Along with the potential new clients, we are expanding our business across channel platform.
I will now turn the call over to Alberto, to discuss our financial results.
Alberto Lopez Gaffney -- Chief Financial Officer
Thank you, Damian and good morning everyone. Please turn to Slide 8 for a review of our operations on a regional basis. Overall, we reported higher gross bookings growth rates across our key markets, both as reported and on an FX-neutral basis. Brazil, our largest market which accounted for 39% of total transactions performed well, taking into account the 7% depreciation of the Brazilian real in the quarter and the result in mix-shift in Packages from international to domestic.
Note, the country experienced a reduction in international air capacity in the fourth quarter. Transactions in this market were up 2% year-on-year with FX-neutral increases of 7% in gross bookings and 5% in ASPs. On an as reported basis, gross bookings and ASPs declined low-single-digits reflecting the currency depreciation.
Next, Argentina. While the country remains impacted by their overall recessionary environment, customers in Argentina advanced travel purchases this quarter in anticipation of our new 30% duty on residents international travel spend that became effective toward the end of December. These helped drive our 13% year-on-year increase in transactions.
On an FX-neutral basis, gross bookings were up an impressive 81% year-on-year with ASPs increasing 61%, reflecting our flexibility to rapidly increase fees under positive market conditions. As reported, gross bookings were up 13% and ASPs 1%, impacted by 37% peso depreciation.
The impending tax duty drove advanced purchases in Argentina in the fourth quarter, pulling sales forward. As a result, we expect to see some contraction in this country in the first quarter. Finally, the rest of Latin America reported an 8% increase in transactions with FX-neutral gross bookings up 12% and ASPs rising 24%. Reported ASPs rose 1% year-on-year, while reported gross bookings were up 9% in the period.
A lead performance in Mexico further supported by currency appreciation in the region was partially offset by weaker growth in Chile, given the social unrest experience in the country that also drove an 8% currency depreciation.
Now turning to the P&L on Slide 9. FX neutral revenues were up 34% year-on-year in the quarter despite ongoing market contraction, which was low-single-digits this quarter, as reported revenues were also solid, up 10% year-on-year. The strong advance sales in Argentina this quarter was one of the drivers behind the robust revenue performance during the period. We continued to drive higher margin revenue mix with the share of Packages, Hotels and Other Travel Products increasing a 100 basis points year-on-year to 63% of total revenues and with higher revenue per transaction in non-air.
Let me also call out the 30 basis points improvement in revenue margin this quarter, which reached 11.4%, the highest level of the past seven quarters.
Our strategy to drive growth in higher margin stand-alone packages, the positive impact from Viajes Falabella with higher ASPs and our agile and flexible approach to managing profitability in Argentina contributed to this good performance.
These more than compensated the reductions in revenue margin resulting from the implementation of our loyalty program in Brazil and lower air supplier volume bonuses.
Now please turn to Slide 10. Gross profit as reported was up 14% year-on-year, reaching slightly over $94 million and was up 34% on an FX-neutral basis. Gross margin increased 222 basis points year-on-year, reaching 64.7%. While we selectively increased customer fees this quarter, the benefits were partially offset by our initiatives to increase customer financing and installment plans in Argentina to support growth, a key lever in driving conversion.
By contrast, financing costs benefited somewhat from lower average interest rates in the country. This quarter, we also had a higher number of transactions where Despegar was the merchant of record versus airline suppliers, which enabled us to offer more attractive customer financing options.
In addition, cost of revenue for the quarter includes a $1.9 million impact from Viajes Falabella. Note, in early February, we outsourced a significant portion of our customer service activities. We expect this initiative will allow us to obtain important sales in our cost of revenues going forward.
Moving on to our operating expenses. We are increasingly adapting our cost basis to change in market dynamics. In the near term, as we grow the business, we are adding expenses, Viajes Falabella acquisition for example. But at the same time, we are streamlining other parts of the business.
Over time, we expect these cost savings and synergies to become more apparent. Selling and marketing expenses, excluding the operation of the Viajes Falabella as well as the one-time severance charge of $0.5 million [Phonetic] this quarter. Sales and marketing expenses would have increased 5% to $45 million. This increase was mainly due to the launch of our Loyalty Program In Brazil, partially offset by efficiencies in direct marketing.
On our per transaction basis, excluding these one-time charge, selling and marketing expenses increased nearly 7% year-on-year to $17.2 million and as a percentage of revenues were up a 133 basis points to 34%. Viajes Falabella contribution to certain margin expenses accounted to $4.1 million, which includes the operational cost of its stores and telesales operations.
Comparable G&A expenses were up 14% year-on-year. This number excludes a $2 million one-time bad debt charge, $700,000 in severance charges in the quarter, as well as $3.2 million in G&A expenses at Viajes Falabella. The higher cost reflects the export rights, stocks and services in Argentina introduced in January 2019, partially offset by lower personnel expenses. Excluding extraordinary charges and as a percentage of revenues, expenses were up 269 basis points, accounting for 16% of revenues. Finally, technology and product development excluding a one-time $1 million severance charge at Viajes Falabella declined 1%.
As a percentage of revenue and excluding the one-time charge, technology and product expenses declined by 21 basis points year-on-year to 12.1%, reflecting higher cost dilution in the quarter.
Of note, fourth quarter '19 results do not reflect the expected synergies from the Viajes Falabella acquisition as the integration process is expected to be completed during the first half of 2020. So far, we finalized the technological integration of the platforms of both Despegar and Viajes Falabella in Argentina and Peru. Therefore, a 100% of Despegar's Hotels inventory is available on lease to Viajes Falabella platform while also introducing new features. This development will allow Viajes Falabella to better serve customer needs. As we finalize the integration, we will be better positioned to achieve operating leverage.
Moving on to profitability on Slide 11, and despite the challenging environment, comparable adjusted EBITDA was $12.5 million in fourth quarter '19, down 10% year-on-year with a margin of 8.6%, almost 200 basis points lower than the same period of the prior year. Taking into account $2.2 million in severance charges across the business from the streamlining of our operating structure to drive future cost savings and $2 million in non-recurring bad debt charges related to Avianca Brasil, as reported adjusted EBITDA declined 40% in the period to slightly over $80 million.
As a reminder, with respect to Avianca Brasil, we rolled out part of our exposure back in second quarter '19 and we've still pursued full recovery of the guaranteed amount. I'll now update [Phonetic] near-term challenges which have impacted our financial results. We continued to execute on our strategic priorities to better position the company for the long term.
That finishes my comments about our fourth quarter sales and earnings performance. Now let me change subjects and maybe just a few comments about our balance sheet and cash flow. Please move to Slide 12.
Our balance sheet at the end of 2019 was in excellent shape. Our cash flow was up. We have no long-term debt and our capital base is strong and growing. Additionally, we generated a significant amount of cash flow and employed a disciplined return-centric approach to deploying our cash. Operational capital investments in the quarter were mainly in software and platform development. While we continued to review and prioritize our capital needs, we remained committed to making the required investments in our company to help position us for our long-term success.
Additionally, during 2019, we took the opportunity to repurchase in excess of 3.5 million shares for a total of $42.2 million and leaving approximately $78.5 million available under the current $100 million authorization buyback program. In sum, our balance sheet and financial conditions are strong, which give us a solid foundation for future growth. In addition to providing value to our shareholders through share repurchase programs, our strong cash flow from operations should allow us to continue to invest in our infrastructure and maintain our flexibility to take advantage of opportunities as they may arise.
We will also continue to be very disciplined in expense management and maintaining a healthy balance sheet, enabling self-funded growth and free cash flow generation. Summing up, we had many accomplishments during the fourth quarter as shown on the slide. Here are few highlights.
We delivered solid top line growth with increases of FX neutral gross bookings of 26% and revenues up 34%. While the team remains committed to enhancing customer satisfaction, NPS declined 50 basis points year-on-year in the quarter due to several contingencies in the Air segment in our portfolio.
This includes a wide range of events including the cessation of operation of an airline in Peru, several flight cancellation and incidents that led to higher-than-average rescheduling of flights across the region.
Increase in mobile transactions have been an important initiative for us. And this quarter, we delivered strong growth in mobile transactions, up nearly 470 basis points year-on-year, while mobile accounting for 41% of constructions in the quarter. Our competitive position and the strength of our balance sheet allow us to opportunistically take actions to gain share which resulted in a 20 basis points increase in Air market share in the quarter.
We continue to gain share, even in periods of contracted industry demand. In sum, we are pleased that we have been able to drive solid financial results in a challenging environment, while simultaneously investing in new growth opportunities and also returning value to our shareholders via share repurchases throughout the year.
The first year has not been without some macro and industry volatility. Despite this, we have been able to opportunistically react to change is market conditions and are pleased with the results we delivered during the past two quarters.
At the same time, we are committed to executing on our five-year growth strategy. In the near term, we expect Q1 2020 to be challenging. Contributing factors are driven mainly by coronavirus and it's related effects, including it's impact on emerging market currencies and capacity contraction and specific Argentina events.
These conditions have and are expected to negatively impact Q1. Although, we do not provide guidance, given the current market discontinuity, particularly coronavirus, we would like to share that we expect to -- to experience a low-teens contraction in gross bookings in dollar terms in this coming Q1 2020 quarter.
Importantly, we will continue to focus on executing against our strategy, drive our innovation program and transforming how we engage with consumers in the digital arena.
We will also continue to enhance the activity and drive cost savings to support our investments and grow margins. Our five-year goal remains intact. 2019 second half results support sustainability [Phonetic]. Sustainable 20% local currency gross bookings growth with take rate in the 11.5% plus area and EBITDA levels above 20% as we discussed at our Investor Day.
As always, we will continue to focus on creating long-term shareholder value. This concludes our prepared remarks, we will now take your questions. Operator, please open the line for them. Thanks.
Questions and Answers:
Operator
We will now begin the question-and-answer session. [Operator Instructions] The first question today comes from Edward Yruma of KeyBanc Capital Markets. Please go ahead.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Hi good morning and thanks for taking my question. First, thank you for the color on coronavirus, I don't know if you are willing to comment at this stage, but are you starting to see an impact for further out bookings, I know that you obviously have a higher leisure and package business. Do you think at this stage it is impactful for the balance of the year? It's my first question. And then second, I know you've taken a number of charges for your streamlining, at this point do you think that that's all the charges you'll need for all the streamlining you've planned for the balance of the year? Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Ed. Good morning. Alberto speaking here. How are you doing? And so, addressing your questions and maybe start with the one on charges. Okay. As you know, during 2020, we will continue with the implementation of the integration of Viajes Falabella. Okay. And also we expect to have by the closing of the second -- of the first half of 2020 the incorporation of Best Day into the Despegar Group. So from that perspective, we are actually on Falabella, well advance in integration plans, a portion of the restructuring charges that you see over there that we have announced this quarter are related to that because we are looking at running these operations of all the different subsidiaries in a seamless manner.
So as such, we have made some good adjustments and we expect that the results of such measures will start pouring through our financial statements in this first half in 2020.
But secondly we will be also -- we are already looking into the integration plan for Best Day, and there will be many opportunities for us to capture both on the top line, but particularly on the bottom line level and as such, we will need to reaccommodate the structure but in any case there will be a good news to the overall story of the Despegar.
So for now let me particularly say Q1, Q2 we believe that there will be very few of those and maybe more, more is to come in the second quarter, but all in all we expect that if there are any charges were to be taken that would be a positive to the [Indecipherable]. And then, would you please remind me of the first question please.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Yes. The first question is on the coronavirus, I know you gave some color as to the bookings for the first quarter, but given that you have a high buyers per leisure, packages, is it your expectation that it should -- are you starting to see an impact for bookings that are kind of 2Q,3Q, 4Q? Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Sure. Let's -- I think that when you look at coronavirus-related factors, OK, let me start with the second one. If you actually look at what happened to currencies, particularly emerging market currencies, since the breakout of corona in China by the end of January, clearly that did affect the currencies in the region. Okay.
As such, you see today the real trading close to 460 per dollar [Phonetic]. We actually see default in Chile again, Colombia peso etc. So, that is certainly what -- certainly trading levels for those currencies that are away from consensus, OK, consensus at the beginning of the year we're looking at the picture that was completely different to the one we're seeing today.
So we also tend to believe that, that is certainly Santander will collect as the coronavirus effect in the overall capital markets comes down.
Secondly, with regards to the business impact, OK, our participation, if you look at all the different regions as you know and we have discussed with the -- communities in the past. Today, our business is approximately two-third Latin America, OK, and one-third approximately let's say -- the travel outside the region with China and Southeast Asia been very small, but then as you go into Southern Europe, Europe and Southern Europe and the US, the percentage starts increasing.
So clearly, what we have seen since the break of corona in Europe, OK, we have seen that our clients started pausing to a certain extent on their travel plans and that is why we actually tried to reflect on the guidance, let's say one-time guidance that we're providing for Q1 and that is our best estimate or what will be the performance for Q1.
Then, with regards to how the rest of the year will shape up at Despegar, we are very positive on the year that we're looking ahead, axe this with the interim period of coronavirus. We are looking at -- continue implementing our strategy. We are excited with Best Day, excited with the results we are already obtaining with -- on Viajes Falabella, the loyalty program, how the app is working, our ability to manage margins that has worked particularly well over the last two quarters and last, we are finishing '19 with two quarters in a row well ahead of our plan and we're particularly excited about what we're seeing, clearly Q1 is affected, not only through Despegar but also through other either competitors or peers of us in other regions of the world and I think we need to just go through and we are very confident that we will emerge quite strong -- stronger than our competitors, given our competitive position.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Great, thank you very much.
Operator
The next question today comes from Eric Sheridan of UBS. Please go ahead.
Eric Sheridan -- UBS -- Analyst
Thanks for taking the question. Topic that came up during the Analyst Day and good progress in this quarter on take rates, could you give us a little bit better sense of how you're seeing take rates evolved in real time. How important it is to make investments on the inventory of the supply side to continue to allow for an upward pressure in take rates over a multi-year timeframe? Thanks so much.
Damian Scokin -- Chief Executive Officer
Eric, hi, this is Damian. Thanks for your question. In terms of take rates evolution, as we always say, in the short-term we manage our pricing strategy very dynamically. It was up to market conditions. And I think that the evolution of take rates in Q4 is a reflection of how we can rapidly take advantage of market conditions to -- in this case increase the take rate. As we've been saying and we stress during the Investor Day, we see a long-term positive trend in terms of our take rate, but that doesn't mean that is a short-term in terms of with the objective of gaining market share.
We will be more aggressive on that side. So, in market conditions like the ones we are facing in Q1 at the moment which is very logical that we will be much more aggressive with our take rate.
In terms of other strategic initiatives and inventory as a reflection of that, Best Day is an example of how our inorganic growth strategy can help us gain on that.
As you know, not only Best Day has a significant proportion of non-air sales that will increase our purchasing power but also has some interesting initiatives going on and has hotel base that's something that will certainly leverage our ability to increase our sourcing capabilities. So we are in -- after the Best Day transaction even more positive about the long-term trend of our take rate.
Eric Sheridan -- UBS -- Analyst
Thanks guys.
Operator
[Operator Instructions] The next question comes from Rodrigo Nistor of Itau. Please go ahead.
Rodrigo Nistor -- Itau -- Analyst
Hi. Thank you for the opportunity. Well, my question is regarding the competitive environment both in Brazil and from global OTAs, how it behaved during the fourth quarter and what are you seeing during the start of the year? Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
Rodrigo. Good morning. Alberto, speaking here. We are -- clearly we are in an industry as we have already discussed that is an industry that is very open to international competition with all global players and regional players being present in all the -- in most of the countries in Latin America and have been present for a long way, OK, numerous years in every case.
So we -- as we look into our market share, OK, we are glad to say that we are improving margins, while also gaining market share as we look into the dynamic between regional players and global players, OK, we see that in an industry in the online space that continues to grow -- the news that has affected our positive trajectory. We are seeing that we are certainly gaining market share.
We monitor performance of our key competitors on the information we get and the analysis we perform is pretty encouraging.
But again, it is an industry that is, as I said, open to every player and as such we also need to have our regard very high and continue developing all the niche that we have been developing. For us the status quo in our business is continue developing new features, that's why we have the success in the app up improving customer performance particularly in that area actually look at despite the fact having an NPS going coming down this quarter, if you look at like all the different websites for claims or customer claims Despegar has continued to improve its current position -- it's position over the past quarters, and particularly this quarter on the NPS side, it will not show, but importantly, as you look into how our peers and how we're fairing vis-a-vis our competitors we are doing well.
We also like to see a great success on the loyalty program and I believe that loyalty program to-date as you know we are in a period of investment, because at the beginning you start like given out the points, so you have higher deferred revenue and that's in margin and impact your take rate. But again, that will be but we are seeing -- we are starting to see good results on the loyalty program on how our trust customers are engaging and what the delta of their behavior want to engage in the program viz-a-viz their performance at our platform before joining the program. So again, we gain market share. We feel very -- we have a solid operation. But again, it's a tough competitive environment in which we feel very well so far know Damian if you want to talk?
Damian Scokin -- Chief Executive Officer
No, no, you summarized it.
Rodrigo Nistor -- Itau -- Analyst
Thank you.
Operator
[Operator Instructions] The next question today comes from Brian Nowak of Morgan Stanley. Please go ahead.
Alex Wang -- Morgan Stanley -- Analyst
Hi, this is Alex Wang on for Brian. Thanks for taking the question. Just two, first, can you just give an update on the loyalty program, you are seeing strong growth there but any sort of consumer behavior findings you can share around spend per customer or frequency for loyalty members versus non-loyalty members? And any implications for sort of long-term marketing spend if you might see a better ROIs leaning more heavily into your loyalty program? That's part one. And the second question, if you can just provide us an update on capital allocation given the strong balance sheet? Thank you.
Damian Scokin -- Chief Executive Officer
Alex. Hi, this is Damian. In terms of Loyalty program, as we mentioned during the call, we launched the program in October 2019 in Brazil, and at the moment we have approximately 400,000 active members. The performance of the program in terms of membership, the credit card since we launched the co-branded credit cards in February like three weeks ago, points accumulated points redeemed, it's better than our original expectations on our business plans.
Having said that, a word of caution, because obviously the early adopters of these programs are generally the more [Indecipherable]. So we are looking at very positive numbers with caution.
And the second part of your initial question about how that will affect, how this will affect marketing spends on ROI obviously, as we've been explaining since we introduced the program, the overall objective of the program is not to build a new profit center around our new business -- around the loyalty program, but rather to intensify our relationships with our consumers and in that way to reduce our acquisition cost and our marketing spend.
So we are extremely optimistic, in nutshell [Phonetic] we are on track to achieving the expected benefits through a lower marketing spend in the long term. As per your second question on capital allocation, remember that along 2019, but really on the third quarter, we made some heavy share repurchase and we always said that that was an opportunistic action that the company took given how the shares were in our prospect under value in comparison to the long-term value of the company.
And obviously we make those decisions in consideration of all other capital allocation alternatives, given where we are now in terms of the -- those deals and the conversations we are having with other potential targets, but we haven't done any of the share buyback activities during Q4, and that's the perspective we have for the, -- I would say next couple of quarters.
Alberto Lopez Gaffney -- Chief Financial Officer
Just to complement. I think that we -- as we know, we invest in the business through the P&L, through actually capturing less of a margin that we could in order to assure that the company continues growing and continued gaining much gaining share, M&A and share repurchases.
Between the -- the trade-off between these last two, we believe that at the levels that we -- at valuation levels that we have been able to get into deals, OK, we believe that is a best return profile getting into M&A given all the positive synergies, how come we better serve our customers and how much more efficient we can be with our expenditures etc. So you will see the company under similar circumstances leaning more given all the synergies that you can capture and leaning more toward M&A rather than share buybacks, OK, as a matter of principle.
Alex Wang -- Morgan Stanley -- Analyst
Great, thank you.
Operator
[Operator Instructions] The next question comes from Kevin Kopelman of Cowen. Please go ahead.
Emily Lavin -- Cowen -- Analyst
Hi, good morning. This is Emily Lavin on for Kevin. Thank you for taking my question. I just wanted to ask about how your mix shift in your business between international travel and domestic travel has been trending since the coronavirus news and also since the new tax in Argentina on international purchases was implemented? Thanks.
Alberto Lopez Gaffney -- Chief Financial Officer
Hi, Emily. Good morning, Alberto speaking again. As you know, the both -- now let's say coronavirus related effects, first start with related ones FX. On FX, clearly the way we see it on a per-country basis, because not all countries have the same as you know, breakdown between international and domestic traveling, what you see is domestic goes up in times in which the FX of each respective -- respected country comes down.
And as you might imagine, OK, over the past weeks as you look into all the different -- all the different travel destinations, OK, as there are news on Southern Europe, OK, the bookings on from a week basis per day -- on a daily basis you have to receive booking for certain destinations coming down, OK. So overall, yes, what fits into the one-time guidance we provided for this quarter is actually what we are seeing on the trade. Okay. What we're seeing on the trade is, since January already with currencies devalued on all carona related news. We actually see a lower relative growth vis-a-vis excluding the corona effects. Okay -- of international share and I'm particularly asking the, the demand starts coming down is very much in line with where the news were coming from. Okay. Southern Europe, Asia, etc. And so certainly, you will see in the upcoming Q1, 2020, OK, you will see that the share of domestic travel will actually increasing.
The good news for us to a certain extent, OK, just to be able to a certain extent to cope with international travel that as you know is more profitable for us is that the network of the inventory we have for domestic travel across the region is particularly strong and we're certainly benefiting from all the good work that our team were doing on the sourcing side, OK, for the domestic destinations as well. So all-in-all, I provided some color, but your assessment is correct.
Operator
[Operator Closing Remarks]
Duration: 58 minutes
Call participants:
Natalia Nirenberg -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Eric Sheridan -- UBS -- Analyst
Rodrigo Nistor -- Itau -- Analyst
Alex Wang -- Morgan Stanley -- Analyst
Emily Lavin -- Cowen -- Analyst
More DESP analysis
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Despegar.com, Corp. (NYSE: DESP) Q4 2019 Earnings Call Mar 5, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Fourth Quarter 2019 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available in the Investors Section of the company's website www.investor.despegar.com.
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Operator [Operator Closing Remarks] Duration: 58 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Rodrigo Nistor -- Itau -- Analyst Alex Wang -- Morgan Stanley -- Analyst Emily Lavin -- Cowen -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q4 2019 Earnings Call Mar 5, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Fourth Quarter 2019 Earnings Conference Call.
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We are excited with Best Day, excited with the results we are already obtaining with -- on Viajes Falabella, the loyalty program, how the app is working, our ability to manage margins that has worked particularly well over the last two quarters and last, we are finishing '19 with two quarters in a row well ahead of our plan and we're particularly excited about what we're seeing, clearly Q1 is affected, not only through Despegar but also through other either competitors or peers of us in other regions of the world and I think we need to just go through and we are very confident that we will emerge quite strong -- stronger than our competitors, given our competitive position. For us the status quo in our business is continue developing new features, that's why we have the success in the app up improving customer performance particularly in that area actually look at despite the fact having an NPS going coming down this quarter, if you look at like all the different websites for claims or customer claims Despegar has continued to improve its current position -- it's position over the past quarters, and particularly this quarter on the NPS side, it will not show, but importantly, as you look into how our peers and how we're fairing vis-a-vis our competitors we are doing well. Operator [Operator Closing Remarks] Duration: 58 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Rodrigo Nistor -- Itau -- Analyst Alex Wang -- Morgan Stanley -- Analyst Emily Lavin -- Cowen -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp.
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Operator [Operator Closing Remarks] Duration: 58 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Rodrigo Nistor -- Itau -- Analyst Alex Wang -- Morgan Stanley -- Analyst Emily Lavin -- Cowen -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q4 2019 Earnings Call Mar 5, 2020, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning and welcome to the Despegar Fourth Quarter 2019 Earnings Conference Call.
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2020-01-28 00:00:00 UTC
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Consumer Sector Update for 01/28/2020: DESP,DLPH,BWA,JJSF
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DESP
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https://www.nasdaq.com/articles/consumer-sector-update-for-01-28-2020%3A-despdlphbwajjsf-2020-01-28
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Top Consumer Stocks
WMT +0.82%
MCD +1.16%
DIS +1.75%
CVS +1.49%
KO -0.70%
Consumer stocks were broadly higher, with the shares of consumer staples companies in the S&P 500 climbing 0.2% this afternoon while the shares of consumer discretionary firms in the S&P 500 were ahead more than 1.1%.
Among consumer stocks moving on news:
(+) Despegar.com (DESP) climbed almost 16% after the travel website company announced its $136 million purchase of Mexican travel agency Best Day Travel Group. Despegar.com said Best Day generated around $140 million in yearly revenue and is expecting the deal to boost its revenue by around 25% over current levels. It is expecting to close the proposed transaction during the first half of 2020, subject to regulatory approvals and other customary conditions.
In other sector news:
(+) Delphi Technologies (DLPH) raced 59% higher after the auto-parts manufacturer agreed to a $3.3 billion, all-stock buyout offer from rival BorgWarner (BWA). Under terms of the proposed transaction, investors will receive a fixed 0.4534 of a Borg Warner share for each of their Delphi shares, with Borg Warner shareholders owning 84% of the combined company.
(-) J&J Snack Foods (JJSF) slid 11% after the packaged foods company missed the Street's consensus estimate with its fiscal Q1 net income, earning $0.89 per share during the three months ended Dec. 28, down from a $0.93 per share profit during the same quarter last year and trailing the Capital IQ consensus by $0.10 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among consumer stocks moving on news: (+) Despegar.com (DESP) climbed almost 16% after the travel website company announced its $136 million purchase of Mexican travel agency Best Day Travel Group. Despegar.com said Best Day generated around $140 million in yearly revenue and is expecting the deal to boost its revenue by around 25% over current levels. It is expecting to close the proposed transaction during the first half of 2020, subject to regulatory approvals and other customary conditions.
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Among consumer stocks moving on news: (+) Despegar.com (DESP) climbed almost 16% after the travel website company announced its $136 million purchase of Mexican travel agency Best Day Travel Group. Despegar.com said Best Day generated around $140 million in yearly revenue and is expecting the deal to boost its revenue by around 25% over current levels. Consumer stocks were broadly higher, with the shares of consumer staples companies in the S&P 500 climbing 0.2% this afternoon while the shares of consumer discretionary firms in the S&P 500 were ahead more than 1.1%.
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Among consumer stocks moving on news: (+) Despegar.com (DESP) climbed almost 16% after the travel website company announced its $136 million purchase of Mexican travel agency Best Day Travel Group. Despegar.com said Best Day generated around $140 million in yearly revenue and is expecting the deal to boost its revenue by around 25% over current levels. Consumer stocks were broadly higher, with the shares of consumer staples companies in the S&P 500 climbing 0.2% this afternoon while the shares of consumer discretionary firms in the S&P 500 were ahead more than 1.1%.
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Despegar.com said Best Day generated around $140 million in yearly revenue and is expecting the deal to boost its revenue by around 25% over current levels. Among consumer stocks moving on news: (+) Despegar.com (DESP) climbed almost 16% after the travel website company announced its $136 million purchase of Mexican travel agency Best Day Travel Group. Consumer stocks were broadly higher, with the shares of consumer staples companies in the S&P 500 climbing 0.2% this afternoon while the shares of consumer discretionary firms in the S&P 500 were ahead more than 1.1%.
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2019-11-07 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q3 2019 Earnings Call Transcript
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-q3-2019-earnings-call-transcript-2019-11-07
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Image source: The Motley Fool.
Despegar.com, Corp. (NYSE: DESP)
Q3 2019 Earnings Call
Nov 7, 2019, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the Despegar Third Quarter 2019 Earnings Call. [Operator Instructions]
Now, I would like to turn the call over to Ms. Natalia Nirenberg, Investor Relations. Please go ahead.
Natalia Nirenberg -- Investor Relations
Good morning, everyone, and thanks for joining us for the discussion of our third quarter 2019 results.
In addition to reporting financial results in accordance with US generally accepted accounting principles, we discuss certain non-GAAP financial measures and operating metrics including foreign exchange neutral calculations.
Investors should read the definition of these measures and metrics included in our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation as substitute for or superior to GAAP financial measures and are provided as supplemental information only.
Before we begin our formal remarks allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements, which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ including factors that may be beyond the company's control. For a description of these risks, please refer to our filings with the Securities Exchange Commission and our press release.
Speaking on today's call is our CEO, Damian Scokin, who will provide an overview of the third quarter and update you on our strategic priorities. Alberto Lopez-Gaffney, our CFO will afterwards discuss the quarter financials and our outlook for the next quarter. After that we will open the call to your questions.
Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Natalia. Good morning, everyone, and thank you all for joining us. On today's call I would like to provide an update on our actions supporting the company's strategic near-term priorities that are positioning the company for long-term growth. Following my comments, I would turn to call over to Alberto for a review of our financial and operational highlights of the quarter as well our outlook for the year. Then we will take your questions.
We are encouraged with our third quarter performance, which reflects continued progress on the strategic initiatives we'll be currently rolling out more than two years ago. Our third quarter financial and operational metrics represent solid results in view of the current environment.
Argentina remains challenging, but with the passing of pension reform in Brazil, we are seeing a more positive environment and our results reflects that. We saw a recovery in our key metrics in the quarter. To put this into perspective, we outperformed the industry. We gained market share. We went back to positive adjusted EBITDA. I think 10 out of 11 quarters since IPO.
Operating cash flow was stronger than prior quarters. We also reported $39.3 million of our share and we are well on our way with our key strategic initiatives as well as the integration of the Viajes Falabella acquisition. We are pleased with the progress we have made in our business over the last several months and with our financial results for the quarter.
Moving onto slide four, I will provide some key data points for the quarter. Our core business is healthy and our team is executing well. Additionally, we are gaining confidence in Brazil, which represents 39% of total company transactions. Following the recent approval of the pension reform in Brazil, we are seeing signs of recovery.
By contrast, we continue to experience volatility in Argentina. Total Packages, Hotels & Other Travel Products accounted for 42% of total transactions. This was flat when you compare with the same period of the prior year, but up 20 basis points when compared to the second quarter of 2019.
We continue to get better at meeting our customers where and how they want to book their travel. We're investing in both our customer facing digital interface through improvements to the search and recommendations of travel products as well as the back-end functionality of our site and mobile app.
These enhancements are aimed at further improving the customer experience. We are also working to increase the frequency of interactions with our customers throughout the travel journey to foster not only cross-selling opportunities, but also to guarantee high service levels. We will describe it in more detail, the new development of Q3 in the following slides.
Our mobile app continues to be a significant tech development providing our customers with a newer more convenient and personalized travel shopping experience, while reducing our direct marketing cost. As a result, mobile now accounts for 39% of total transactions up 100 basis points from the prior quarter and 418 basis points from the same period last year.
We closely monitor net promoter scores as the most relevant sign of customer satisfaction. And in turn, we saw a 150 basis point improvement in our net promoter score during the quarter. Room nights were up 5% year-on-year and up 10% ex-Argentina. While this pace is lower than prior quarters, we are taking steps to get back to stronger growth levels. Our recent agreement with Ctrip is part of these initiatives.
Moving next to cash on -- of transactions and gross bookings on page five. Before getting into details for the quarter, I want to mention that the contribution from Viajes Falabella is included in the research in Argentina, Chile, and Peru for the whole quarter.
While the contribution from Colombia was only for the month of August and September. Both transactions and gross bookings rebounded quarter-over-quarter and year-over-year. Total transactions were up 5% in the quarter with both air transactions and Packages, Hotels and Other Travel Products, each increasing 5% year-over-year. We have been focusing on a stand-alone packages as a key strategic initiatives and the acquisition of Viajes Falabella was another step in that direction.
As a result of this effort, in the third quarter, stand-alone package transactions increased 26% year-on-year remaining our fastest growing product. Gross bookings increased 26% on an FX neutral basis. An acceleration from prior quarter.
As reported gross bookings were up 8%. Excluding Argentina as reported gross bookings increased 14%. This better than industry performance is reflective of all the initiatives we have rolled out over the past year, including the acquisition of Viajes Falabella.
Importantly, we saw a 21% year-on-year increase in FX neutral ASP. Factors contributing to this includes strong ASPs in Air Brazil and product mix-shift toward higher priced packages partially driven by the contribution from Viajes Falabella. The macro environment has not improved significantly and the political situation has gotten a bit more volatile in many of the countries in which we operate.
Argentina remains challenging, Brazil continues to slowly recover, having recently passed the pension reform, while Mexico's economic growth is slowing. All these factors contributed to a single-digit contraction in the industry gross bookings across the region.
However, reflecting the success of the initiatives, we implemented in the second quarter, we once again performed better than the industry and gained 30 basis points of market share. Excluding Avianca Brasil, our market share grew by 110 basis points.
Moving next to page six, where I will discuss some of our recent business initiatives. Products, services and tech innovation remains a key priority for us and we tried to make each step of the travel experience across all platforms easy and enjoyable for our customers.
Our clients already know Despegar and our associated brand Decolar. And beyond that they trust our brand to give them innovative products, quality, services and expert advice. As shown on this slide, I want to highlight some of the recent developments we have been carrying out to continue building the direct relationship that we have with our customers.
On October 31st, we launched our loyalty program Despegar passport to 100% of our traffic in Brazil, our most important market.
After having introduced and tested with 50% of Despegar visitors in that market on September the 9th. Despegar passport allows travelers to earn points when booking flights, hotels and other travel products with non-air products accumulated higher number of points.
Additionally travelers can continue and earn points in our loyalty program such as credit cards and frequent flyers in the same transaction. Despegar passport has a three tier earnings structure traveler, explorer or global. With those in the global category, having access to exclusive customer care to assist in travel planning and [Indecipherable] support.
We are extremely excited about this new program, which since launch has already accumulated 120,000 members in Brazil. In some, with this loyalty program, we are further enhancing our value proposition and giving customers an additional incentive to purchase through Despegar, while driving cross-selling and boosting customer lifetime value.
Next, I would like to briefly discuss our recent acquisition and two new partnership. Enhancing customer service is a major focus in our business. This is not only enabled by technology, but also by working with new partners.
As a result of all the actions we have undertaken to become the leading OTA in Latin America. We are the partners of choice for other leading companies looking to provide additional products or benefits to their own customer base. The first initiative this year on this front was launched with the acquisition with Viajes Falabella which we have already discussed.
Along with a longer-term strategic alliances with Falabella Financiero. We expect to complete the integration of the Viajes Falabella during the first half of next year and obtain significant synergies from this process, which Alberto will describe shortly. Second, last month we announced an API connectivity agreement with Ctrip, which allows for the integration of Despegar' direct accommodation portfolio in Latin America with Ctrip's platform.
This also enables us to expand our potential customer base beyond our core geographic region into a fastest growing Chinese market. And third, last week we announced a 10-year exclusive co-branded credit card agreement with ICBC in Argentina in partnership with Mastercard.
Now a brief comment about two new services. We continue to invest enhancing the customer travel booking experience by providing different channels and opportunities to interact with Despegar. To that end, we upgraded the technological systems of our call center to aid in the pre-travel stage, while reducing the cost of each interaction by bringing automation to the process.
We also launched bundles, which is a dynamic bundling package technology that it compensate every product that is available at Despegar creating a personalized and complete experience to our customers.
Additionally by leveraging that inside by directing demand toward the suppliers that are not only the ones with whom we have the best commercial agreement, but also the ones that our customers like the most. We believe all this initiative lay the foundation for consistent long-term growth.
I will now turn the call over to Alberto to discuss our financial results.
Alberto Lopez-Gaffney -- Chief Financial Officer
Thank you, Damian, and good morning, everyone. Please turn to slide six for a review of our operations on a regional basis. Overall, gross bookings growth rates recovered across our key markets. Both as reported and on an FX-neutral basis.
Starting with Brazil. Our largest market is accounted for 39% of total transactions. Transactions in this market increased 3%, a reversal from the 14% year-on-year decline in second quarter '19 when we reduced our exposure to Avianca Brasil.
Gross bookings also performed well up 15% as reported and 19% on an FX neutral basis. ASPs were up 16% on an FX neutral basis and 11% as reported, benefiting from higher domestic tariffs and sustained mix-shift from domestic to international travel.
In Argentina, transactions declined 4% year-on-year mainly driven by lower international travel as demand for discretionary spending remains impacted by the recessionary environment. This however was an improvement from the 14% drop experienced in the prior quarter, when we shifted our marketing expenditures to the rebranding campaign.
We also believe customers in Argentina advanced the purchase of their summer holidays in anticipation of potential FX volatility across primary presidential elections last August. FX neutral gross bookings increased 47% and ASPs 51%. As reported gross bookings and ASPs however were down 11% and 8% respectively impacted by the 36% peso depreciation.
Finally, transaction growth also stepped up in the rest of Latin America up 12% pickup from an 8% increase in second quarter '19. FX neutral gross bookings performed quite well up 21% with ASPs up 8%. Reported gross bookings this quarter were up 13% with ASPs up 1%.
Now turning to the P&L on slide eight. Improved performance across key markets contributed to a pickup in the consolidated top line growth rate and revenue margin this quarter. We accomplished this despite ongoing market contraction, which was high-single digits this quarter. FX neutral revenues were up 19% year-on-year and up from the 5% posted in the second quarter as we continue to make progress on our growth strategy.
We also saw strong recovery in as reported revenues, which posted a 9% year-on-year increase, a turnaround from the decline were reported in second quarter '19. This good performance was mainly driven by higher margin packages, hotels, and other travel products, which posted revenue growth of 14%.
Air revenue growth also improved year-on-year showing moderate growth of 1% this quarter, an improvement from the 11% decline last quarter. As a result packages, hotels and other travel products accounted for 61% of total revenues cut from 59% in the second quarter last year, a 290 basis points increase.
Several factors contributed to the pickup in revenue growth. First the initial benefit from the rebranding initiative and new product launches implemented in second quarter '19. Second, the positive impact from Viajes Falabella, which has significant share packages. And third and last we saw a positive mix-shift from domestic to higher margin international transactions.
These more than compensated for the reduction in customer fees and discounts in package transactions that we implemented to support market share growth, lower air supplier volume bonuses, and the FX translation impact. Revenue margin in turn was up 11 basis points year-on-year to 11.2%.
Now please turn to slide nine. Gross profit increased 9% year-on-year to 92 million on an FX neutral basis and 6% as reported. Taking advantage of market conditions to drive further share gains. In this quarter, we continued investing in lower fees and customer discounts on packages. We also stepped up customer financing and installment plans in Argentina, our key tool in driving conversion rates.
This together with higher interest rates resulted in higher installment plan costs. This quarter we also had a higher mix of transactions where Despegar was the margin of record, instead of the airline suppliers, allowing us to offer more attractive customer financing options.
As you know being merchant of record also has a negative impact on our cost of revenue. This quarter, we are also including $2 million impact in cost of revenue from the Viajes Falabella, while this was partly mitigated by efficiency gains in fulfillment, combined these factors resulted in a 210 basis points year-on-year contraction in gross margin to 67.7%.
In the near-term as we invest in our business to drive future growth. We are experiencing an increase in our cost base. However, we do expect over time to generate synergies and leverage our cost base over a higher revenue. Selling and marketing expenses excluding Viajes Falabella would have been nearly 43 million, which represent an increase of 3%.
This increase was related to telesales and affiliates and were partially offset by efficiencies gained in Direct Marketing. On a per transaction basis and excluding Viajes Falabella, selling and marketing expenses were flat at $16 per transaction and as a percentage of revenues increased 74 basis points to 35%.
Viajes Falabella's contribution to sales and marketing expenses accounted for 3.8 million, which includes the operational cost of its stores and telesales operation. Comparable G&A expenses, excluding a one-time severance charge in third quarter '18 and also excluding Viajes Falabella we are up 35% year-on-year.
Higher costs include export rights tax on services in Argentina introduced in January this year. Higher depreciation and amortization driven by a higher capitalization of our tech and development investments and higher stock-based compensation. This was partially offset by the FX translation impact from currency depreciation in Argentina, where we have the majority of our G&A expenses.
As a percentage of revenues and excluding Viajes Falabella comparable G&A expenses in third quarter '19 were up 457 basis points accounting for 18% of revenues.
Technology and product development excluding Viajes Falabella declined 1%, which reflect additional cloud sourcing expenses as well as an 11% increase in headcount as we introduce new services and functionalities to our platforms. These increases have been largely offset by higher capitalization of these costs aligned to industry standards. As a percentage of revenue and excluding Viajes Falabella, technology and product expenses declined by 23 basis points year-on-year to 13.6% reflecting higher cost dilution in the quarter.
Some of these initiatives include are in automation in our customer care operations, which will contribute to lower cost and enhance customer satisfaction. And we are also in the final stages of developing a loyalty program.
The integration of Viajes Falabella, a process we expect to complete during the first half of 2020 is also expected to drive additional cost efficiencies. As we have just begun the integration process, we are not generating synergies. In fact Viajes Falabella cost per transaction is about five times higher than Despegar's stand-alone.
As we finalized the integration of the two platforms, we will be better positioned to achieve operating leverage. Looking ahead we'll remain focused on streamlining the cost structure to maximize efficiencies and execution. Along this line last month we downsized our cost structure as we completed the development of several strategic projects, which we expect will contribute to reducing operating costs. This measure however is anticipated to impact fourth quarter '19 results as we up [Phonetic] for severance cost in the range of $2 million.
Turning to profitability on slide 10. We reported positive adjusted EBITDA this quarter of $9.4 million more than reverted the 7.3 million loss reported in the prior quarter, which had been impacted by specific one-time internal and external events. Comparable EBITDA however declined 39% year-on-year with a margin of 7% against 12.6% a year ago.
Lower year-on-year profitability reflects the challenging economic environment in Argentina impacted by our strategy of prioritizing top line growth together with macro disruption in the quarter. In this context, we stepped up package discounts reduced lodging and car rental fees and incurred higher installment expenses to drive demand and capture share gains. Higher operating cost and the FX translation impact also negatively impacted profitability in the quarter.
Moving onto the balance sheet and cash flow items on slide 11. Maintaining a healthy financial position is one of our key strategic priorities. Past which has enabled us to invest in the business at a time when others don't have the same flexibility.
And at the same time we can enhance shareholder value as evidenced by a share buyback program that it is in place and we have been executing on. The execution of the buyback underscores Board's view on the depressed valuation of the Despegar shares.
We keep a strong balance sheet with unrestricted cash and cash equivalents of $300 million at the close of the third quarter. This was further supported by strong cash flows from operations of nearly 26 million in the third quarter compared to an outlay of close to 27 million in the same quarter last year.
This good performance was mainly driven by a decline in the receivable balance from better collection turns, higher tourist payables due to higher sales, together with a decline in other assets and prepaid expenses reflecting lower advances to suppliers. We made capital investments of near 6 million this quarter mainly in software and platform development. We also purchased 3.25 million shares in third quarter '19 for a total cost of $39.3 million.
In total, we repurchased 3.46 million shares during the first nine months of the year at a total cost of $42.2 million. Summing up let's move to page 12. Third quarter results were particularly strong in light of the macro volatility and consequent high single-digit industry contraction.
The low volatility cost for caution in our remarks, our performance allows us to reiterate our Q2 outlook, which pointed toward a cycle upturn. In Q3, which was marked by our client's advanced purchases in Argentina, we managed to opportunistically capture additional profitability.
FX fluctuations and market discontinuities such as the ones taking place in Chile today get counterbalanced by positive signs of traction on key investments in certain areas and geographies. These levers point us to our Q4 level of activity broadly in line with last year's. We'll remain focused on our long-term strategy. This perspective, which drives strong investment is not precluding us from capturing operational efficiencies when possible.
As such Q4 will be marked by some restructuring charges as we lighten up the operations when resources get freed-up as initiatives are deployed. In addition, in the upcoming quarter, our take rate will be impacted by the success of the loyalty program in Brazil.
Last, we continue making progress in the integration of the Viajes Falabella with synergies expected to be materially captured in second half 2020 as we merge our operations. In summary, while we still face external challenges during the third quarter, we continue to see plenty of opportunity for long-term growth. As you heard from our remarks today, we are making good progress across multiple fronts. Our teams are operating with urgency and focus and I'm grateful for their hard work, commitment and support.
In conclusion, we continue to work toward executing on our long-term key business initiatives and we remain confident that our strategic investments are establishing a solid foundation, creating further differentiation and position enough to deliver improving financial results in better economic environments.
Lastly, let me remind you, we will be hosting our first Annual Investor Day in New York City on December the 10th. I look forward to seeing you there. As a reminder [Technical Issues] this concludes our prepared remarks. We will now take your questions. Operator, please open the line for questions.
Questions and Answers:
Operator
Please go ahead Mr. Yruma.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Hey, guys. Thanks for taking the questions. I guess first I know last quarter as part of the rebranding and the app relaunch you guys had some conversion issues. Maybe you are more a bit [Indecipherable] customers are less familiar with the new navigation. I guess I know you had some positive data points on mobile, but do you think that the customer is fully attuned to the changes you've made? And then second, I know, that you guys are starting to pass along some discounts, putting on the package side. I guess are you seeing the kind of elasticity and demand. Does the discount help with conversion? Thank you.
Damian Scokin -- Chief Executive Officer
Hi, Ed. This is Damian. First part of your question, yes, as you know we track conversion rates in our platform very closely. And we are very happy with the evolution of the conversion rates of the third quarter. We are up in all the three main platforms and that make us certain that the new rebranding effort has been successful and widely accepted by consumers. Can you repeat the second portion of your question?
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Yeah, it sounds like you're starting to invest a little bit in price. I think you said you're offering, I think, more package discounts and that was one of the margin drivers. I guess does -- have you noticed that the discounts improve conversion materially? Is it a competitive response?
Damian Scokin -- Chief Executive Officer
Yeah. So, yes, as you probably know we have been very aggressive on price strategy over the last several quarters. We decide on our pricing tactics on a daily basis product by product, geography by geography not only in response to competitive moves, but also in response to our TCP [Phonetic] models and how we see demand evolving.
Our strategy as we've been stating over the last quarter is to continue being very aggressive on price to gain market share in all products, in all geographies as far as these attains minimum profitability level that we set.
So, this is not the reaction to any competitive move, but rather an explicit strategy that we've been following over the last several quarters and the reflection of that is our market share improvement.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Great. And one final follow-up if I may. Credit extension to consumers, are you guys seeing any change in trends from some of your partners and given kind of what interest rates have done. Has it cause you to change maybe the payment terms that you're offering? Thanks so much.
Damian Scokin -- Chief Executive Officer
Yes. As you know the volatility of some of our markets particularly in Argentina has significant increased interest rates on consumer loans and credit cards. Therefore, we adjusted our offer and that's a major headwind to our value proposition. Since we have the most comprehensive -- we have the most comprehensive payments and financing offer in Latin America. In spite of that, we achieve significant growth in a very peculiar context.
And additional data points that may give you some color is that we continue to grow in our payment methods in all geographies and we're particularly happy on how Boleto Parcelado has been performing in Brazil. As you probably know, we are the only online company that transact online with Boleto Parcelado which is a widely used means of payments in Brazil.
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Great, thanks so much.
Operator
Thank you. And the next question comes from Eric Sheridan with UBS.
Eric Sheridan -- UBS -- Analyst
Thanks for taking the question. Maybe two if I can. You showed good progress on mobile and on selling packages. Could you just reframe for us what are some of the investments you're making in terms of driving greater level of penetration in both of those. Maybe think through like what we might see as a long-term goal in terms of percentages or packages where transactions via mobile and how that could improve the overall cost structure and conversion on the platform longer term? Thanks so much.
Alberto Lopez-Gaffney -- Chief Financial Officer
Yes. Eric, thanks for your question. We are extremely happy how mobile is performing. As you all know this is key not only in terms of a closer relationship with the consumer, but also for developing lower cost sources of traffic. We not only increased our installed base on the app.
But we are also very happy on the metrics of in travel use of our app. We're seeing that going up significantly. We have seen in many of the success story there are a lot of responsibility for that. The product has done a great job upgrading our app. We're offering more features and services and our traffic sourcing strategy has been evolving and obtaining a lot of efficiencies in directing traffic toward our app.
It's not only mobile, if you also look at the mix in between app and responsive, our app share within the mobile spectrum is much higher than in the past. So, that's another reason to be significantly happy about that.
In terms of long-term target our current levels was in the mid '30s. As we mentioned, we believe there is ample room for growth in Latin America perhaps even more than in developed markets given the higher penetration of mobile devices as access points to web services.
That is more than in developed markets. As per packages, that's also we believe a strong success story because that has shown strong growth and still there is ample room for further potential growth.
It doesn't represent a significant portion of the overall gross bookings of Despegar. We believe we can even double the current volume of packages we sell in the next couple of years. We'll get things run right that's continue to trend we've drawn over the last few quarters.
And but that [Indecipherable] the stories behind the success in packaging is again plenty of different efforts [Indecipherable] sourcing has been doing a great job. Also our ability to steer traffic though was the most promotional packages. And our ability to steer and acquire traffic though was those are the type of products has improved over the last, I would say, two quarters.
Eric, Alberto joining here. The only thing that I would add is within packages also we are nicely growing the packages that we actually have, of course, some inventory risk. Okay, and I think we believe that's --it's still at very low levels, but as you know that, as we have mentioned in prior calls that has much higher attractive profitability and we continue to run in those products with particularly high occupancy factors, OK.
Let's recall what we did last summer. Latin American summer with 99% occupancy factors. We run some also some packages from Brazil to Chile also to Argentina in the summer, in the winter period, and that had also occupancy factors above 90%.
So, I think, that's not only when it comes to drop inventory that is growing nicely, but from a very small base, but also packages as a whole, I think, that progress has been noteworthy.
Operator
Thank you. And the next question comes from Brian Nowak with Morgan Stanley.
Brian Nowak -- Morgan Stanley -- Analyst
Okay. Thanks for taking my question. I have two. The first one understanding Google is always a dynamic animal. Your sales and marketing trends, your sales and marketing per transaction in the quarter ex-Falabella was really strong at flat. Were there any changes or adjustments that the team had to make from an SEO or SEM perspective in the quarter to kind of keep it flat. I know there's always sort of a noise as to what's going on in the Google ecosystem. I'm curious to hear your where you are at this point. And then the second one, on the loyalty program, 120,000 sign ups in a month is a pretty good number. I'm curious to hear are you seeing new people and new customers come to the platform or is it mostly sort of your existing base and how should we think about sort of sizing the take rate impact as we go into 4Q and 2020 from that?
Damian Scokin -- Chief Executive Officer
Good. Let me take the. Brian this is Damien. Let me take the part the question. Yes, we are facing the same challenges that other colleagues have referred to recently. And as you put in mind [Indecipherable] Google is evolving constantly and so we are in reaction to that. Our marketing team has been extremely effective in leading with the new SEO challenges that the Google post to all of us in terms of how they display the results. And our team has been extremely effective in increasing other sources of unpaid traffic particularly direct and our effectiveness of our email and push notification has significantly grown. We know that we operate in a very dynamic environment at every quarter posts new challenges ahead of us. I'm really happy on how the team reacted to these.
And also we are happy because I think that these are related to rely more on other non-paid sources of traffic is a reflection of the strength of the brand in Latin America. Keep in mind that more than 50% of our traffic is coming from the traction of our brand generates.
And I will leave to Alberto for the second part of your question.
Alberto Lopez-Gaffney -- Chief Financial Officer
Sure, Brian. In order to address your question on take rate an immediate outlook on that. What we stated is number one we are in the cycle etc. I think it's very promising where we are. I think we reiterated that Q2 was at the bottom of the cycle.
I think Q3 performance was particularly good. If you actually look at take rate, what has been the performance during the full 2019, we were actually at 60 basis points take rate loss vis-a-vis '18, OK. That was the case in first quarter, that was the case in second quarter as well.
And we actually had a particularly strong take rate in this Q3 even beating what was the take rate in Q3 '18 by 10 basis points. As we look into Q4, OK I think one thing is that we mentioned it on the opening remarks is that we have very successfully launched the loyalty program in Brazil.
As you all know based on the accounting for the loyalty program, OK, we expect to have, let's say, a loyalty deferred revenues in the ballpark of around $2 million in Q4 and that already hit your take rate in approximately 20 basis points or slightly higher than that.
So, we believe that including that impact from loyalty, I think, we should be better than what we actually achieved in Q1 and Q2 that we actually saw those 60 basis points loss vis-a-vis last year, OK. Q3 again was particularly strong and in some geographies we actually saw particular in Argentina. We saw our clients advancing some purchases and we were able to opportunistically adjust our pricing as Damian pointed out. We look at electricity on a weekly basis. We look at our transaction volume and gross bookings on a daily one. And so we -- that's part of the revenue management team and that allows us to capture a very attractive take rate in Q3.
So, hopefully, with this I gave you a bit of -- even though we do not as you know we do not provide specific guidance certainly in these volatile times in the region, I think, it merits to provide some additional color on Q4.
Brian Nowak -- Morgan Stanley -- Analyst
Great. Thanks, guys.
Operator
Thank you. And the next question comes from Rodrigo Nistor with Itau.
Rodrigo Nistor -- Itau -- Analyst
Hi, good morning. Well, actually, Alberto just answered my question. I wish I was wondering if you're seeing any kind of short-term positive impact on the money Argentina the restrictions to access the FX markets and then I wanted to know if you could give us that how much it was the impact from Falabella Viajes in your revenue and result? Thanks.
Alberto Lopez-Gaffney -- Chief Financial Officer
Rodrigo, Alberto here. Good morning and thanks for your question. With regards to the breakdown of Falabella, we tried to be particularly accurate on our statements as we actually analyze the cost structure from sales and marketing, G&A and tech and content.
Just to so that the investors and the analyst community would actually have a very good read about on how the cost structure of the company and the potential for operating leverage in the future was actually performing. The idea would be that actually going forward, OK, I think, you guys will use this base in order to forecast our model.
So, I think, we would rather just given that we have -- we believe that we share a lot of information with the market, I think, we will fall short Rodrigo on actually looking at the specific contribution for Viajes Falabella.
I think that overall just in relative terms are not to get into specific numbers. You see a company that has an attractive take rate in Viajes Falabella. And as you know like two-thirds 65% approximately of the overall gross bookings of Viajes Falabella was packages and that was one of the key reasons we actually drove our decision to acquire such a great platform.
However, the counter side on that is clearly that we actually have a much heavier cost structure and that is going through the whole integration of Viajes Falabella that we are making material progress and we expect to capture in the second half of the year, a relevant synergies on this front is payment. Our view that the online business is by far the best operating model as we start capturing all the operating leverage.
So, that when it comes to the Viajes Falabella. Would you please remind me of the first part of the question because that's the same that I already addressed it based on the response to Brian or is there anything specific that you would like to need to address?
Rodrigo Nistor -- Itau -- Analyst
Yes.
Alberto Lopez-Gaffney -- Chief Financial Officer
I mean the first part of the question, sorry.
Rodrigo Nistor -- Itau -- Analyst
Sure. If you relate that the purchase of travel and packages in Argentina to the restrictions to access the FX market and if that's what's driving the short-term positive impact there in your opinion?
Alberto Lopez-Gaffney -- Chief Financial Officer
I think that I'm sorry I now recall you also asked about capital controls etc you know. And so first and foremost on capital control, I think, it's important that -- important to highlight as you mentioned the topic as a whole. For the investment community understand that today Despegar is facing no restriction whatsoever to access the FX market.
And so far all the communications by the Central Bank, OK, are actually if anything you have an indirect incentive to travel because through your credit card you can actually do all your purchases. That's one way to access developed market is by buying goods and services. So, from that perspective, I think, we feel OK.
Certainly the name when it comes to Argentina on buying patterns in Argentina clearly we see in the region by particular in some market discontinuity [Indecipherable] the election. It has been a continuity and I think Argentinians are very avid on looking at what would be the quotation for dollars today vis-a-vis the future on how they can actually exercise or actually increase the purchasing power.
Today, the name of the game, I would say that if volatility is very hard even though we do acknowledge that in particular in the month of October there was some advanced purchases. A little bit we also found that during the month following the August election. But I think it's, I think, maybe I'm tempted to say maybe too soon to tell, OK.
What will be the consumer behavior in Q4 and Q1 next year. And I think that's pretty much all of you. I think that's very hard to predict. We actually see, I don't think that the strength of Q3 was just based on the advanced purchases by Argentina. I think overall the company had a very strong performance despite an industry again in Q3 the industry contracted as a whole.
Rodrigo Nistor -- Itau -- Analyst
Okay, thank you.
Operator
Thank you. [Operator Instructions] And the next question comes from Kevin Kopelman with Cowen and Company.
Emily DiNovo -- Cowen and Company -- Analyst
Hi. Thanks for taking my question. This is Emily on for Kevin. I think a lot of my questions have been answered, but could you give us some more color on this -- your inventory sharing agreement that you entered into with Ctrip?
Damian Scokin -- Chief Executive Officer
Yes, basically the agreement allows Despegar to put on Ctrip's platform all of our inventory. We are currently the online as to [Indecipherable] the online the only travel agency in Latin America offering that to the Chinese market. This will be gradual because obviously we have to translate all our inventory into mandarin, but we are extremely excited about the potential of this agreement.
Emily DiNovo -- Cowen and Company -- Analyst
Thank you.
Operator
Thank you. And at this time I would like to return the floor to Damian Scokin for any closing comments.
Damian Scokin -- Chief Executive Officer
Thank you, Operator, and thanks everyone for joining the call today. As usual if you have any further questions please do not hesitate to reach to us. We'll be happy to follow up. Thank you very much and looking forward to see you again in our next call. Take care.
Operator
[Operator Closing Remarks]
Duration: 52 minutes
Call participants:
Natalia Nirenberg -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez-Gaffney -- Chief Financial Officer
Edward Yruma -- KeyBanc Capital Markets -- Analyst
Eric Sheridan -- UBS -- Analyst
Brian Nowak -- Morgan Stanley -- Analyst
Rodrigo Nistor -- Itau -- Analyst
Emily DiNovo -- Cowen and Company -- Analyst
More DESP analysis
All earnings call transcripts
10 stocks we like better than Despegar.com, Corp.
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*Stock Advisor returns as of June 1, 2019
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com, Corp. (NYSE: DESP) Q3 2019 Earnings Call Nov 7, 2019, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Third Quarter 2019 Earnings Call. Our clients already know Despegar and our associated brand Decolar.
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Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez-Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Brian Nowak -- Morgan Stanley -- Analyst Rodrigo Nistor -- Itau -- Analyst Emily DiNovo -- Cowen and Company -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q3 2019 Earnings Call Nov 7, 2019, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Third Quarter 2019 Earnings Call.
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Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez-Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Brian Nowak -- Morgan Stanley -- Analyst Rodrigo Nistor -- Itau -- Analyst Emily DiNovo -- Cowen and Company -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q3 2019 Earnings Call Nov 7, 2019, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Third Quarter 2019 Earnings Call.
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Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Natalia Nirenberg -- Investor Relations Damian Scokin -- Chief Executive Officer Alberto Lopez-Gaffney -- Chief Financial Officer Edward Yruma -- KeyBanc Capital Markets -- Analyst Eric Sheridan -- UBS -- Analyst Brian Nowak -- Morgan Stanley -- Analyst Rodrigo Nistor -- Itau -- Analyst Emily DiNovo -- Cowen and Company -- Analyst More DESP analysis All earnings call transcripts 10 stocks we like better than Despegar.com, Corp. Despegar.com, Corp. (NYSE: DESP) Q3 2019 Earnings Call Nov 7, 2019, 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the Despegar Third Quarter 2019 Earnings Call.
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2019-10-16 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 10/16/2019
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DESP
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-10-16-2019-2019-10-16
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
DESPEGAR.COM CORP (DESP) is a small-cap growth stock in the Personal Services industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Despegar.com Corp is an Argentina-based travel agency. The Company's activities are divided into two business segments: Air, as well as Packages, Hotels and Other Travel Products. The Air division focuses on the sale of airline tickets. The Packages, Hotels and Other Travel Products division includes sales of travel packages with or without airline tickets and hotel rooms, as well as stand-alone sales of hotel rooms, including vacation rentals, car rentals, bus tickets, cruise tickets, travel insurance and d
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DESPEGAR.COM CORP (DESP) is a small-cap growth stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based travel agency. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher.
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DESPEGAR.COM CORP (DESP) is a small-cap growth stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based travel agency. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
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DESPEGAR.COM CORP (DESP) is a small-cap growth stock in the Personal Services industry. Company Description: Despegar.com Corp is an Argentina-based travel agency. The rating according to our strategy based on Kenneth Fisher changed from 48% to 70% based on the firm’s underlying fundamentals and the stock’s valuation.
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Company Description: Despegar.com Corp is an Argentina-based travel agency. DESPEGAR.COM CORP (DESP) is a small-cap growth stock in the Personal Services industry. The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher.
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728665.0
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2019-09-18 00:00:00 UTC
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The Hidden Reason Booking Holdings May Be a Better Stock Than Expedia
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DESP
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https://www.nasdaq.com/articles/the-hidden-reason-booking-holdings-may-be-a-better-stock-than-expedia-2019-09-18
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The two biggest online travel agent companies, Booking Holdings (NASDAQ: BKNG) and Expedia (NASDAQ: EXPE), are sometimes viewed interchangeably by investors. Booking Holdings is the larger of the two, yet together they have consolidated a duopoly in online travel bookings in the U.S. and Europe, with offerings across hotels, plane tickets, home and vacation rentals, rental cars, and other travel products.
When you're looking at the two names, it might seem as though Expedia is clearly the better stock. After all, it not only trades at a lower forward P/E ratio of 16.2 to Booking Holdings' 17.8, but Expedia also seems to be growing faster than Booking at the moment:
Data source: Booking Holdings' and Expedia's second-quarter filings.
However, there is more to Booking and Expedia than meets the eye.
International businesses and investments
One reason investors might want to give Booking Holdings the benefit of the doubt is that it has more European and Asian exposure, and is thus more affected by currency swings. On a constant currency basis, Booking Holdings grew Q2 2019 bookings 10% and revenue 14%, which means it actually slightly surpassed Expedia. Negative currency movements last quarter makes Booking Holdings' growth slower than Expedia's. If the recently strengthening U.S. dollar reverses course, Booking Holdings' growth metrics would proportionally improve.
Additionally, Booking Holdings has more room to grow domestically. On the recent conference call with analysts, CEO Glenn Fogel said, "The U.S. is a great opportunity for us because we're under indexed. And that's something that we recognize, a need to do better and to try and get more than our fair share is what we always want."
Yet besides this currency issue, there's an even bigger reason Booking may have an advantage over Expedia.
Booking Holdings has invested significantly in China. Image source: Getty Images.
China investments move the needle
The real reason that Booking Holdings might be valued higher than Expedia is its superior investment track record, specifically with its minority investments in China. While the Chinese market has been difficult for both Booking Holdings and Expedia to penetrate, Booking has invested aggressively in leading Chinese companies in the travel and mobility spaces. These include the following:
Data source: Booking Holdings quarterly report, Crunchbase.
Ctrip is the leading online travel agent site in China. Meituan-Dianping is the leading food delivery app and local deals platform in China (which just posted a great earnings report). Didi Chuxing is the leading ride-hailing platform in China. In addition, Booking recently invested in Grab, a leading ride-hailing platform and food delivery service in Southeast Asia, and even more recently invested in Yanolja, a Korean hotel booking platform.
For those unaware, investors in private companies often take preferred stock, which gives the company priority over equity investors. These preferred shares often convert to equity for a company's IPO. Therefore, the preferred stock investment in Didi, for instance, could eventually be valued higher should the company go public.
Booking Holdings is more aggressive and international
All of these investments add up to a formidable Chinese and Asian portfolio for Booking of over $3 billion. While Expedia has also made international investments, it hasn't been in China, and they consist of a smaller $120 million stake in Despegar (NYSE: DESP), a Latin American travel platform, and a $350 million investment in southeast Asian travel platform Traveloka.
Expedia hasn't had as much investment success as Booking. The company's investment in Despegar has lost about half its value since Despegar went public, and Traveloka's CTO resigned late last year, issuing a scathing letter about the company's culture upon departure. Expedia also owns a majority stake in Trivago (NASDAQ: TRVG). Trivago is a public company in its own right, but its results are consolidated with Expedia's. Trivago has also lost over half its value since going public.
While Expedia's current headline numbers appear superior to Booking Holdings' numbers, it's not so cut-and-dried. Expedia could make for the better choice for some investors, given its U.S.-centric model, small dividend, and lower valuation. However, those willing to bet on the growth of China and international markets should probably look at Booking Holdings, despite its seemingly inferior growth. At the very least, Booking has proven to be the better investor in other companies, and this likely accounts for its premium over Expedia.
10 stocks we like better than Booking Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Booking Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Booking Holdings. The Motley Fool recommends Ctrip.com International and Trivago. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Expedia has also made international investments, it hasn't been in China, and they consist of a smaller $120 million stake in Despegar (NYSE: DESP), a Latin American travel platform, and a $350 million investment in southeast Asian travel platform Traveloka. The company's investment in Despegar has lost about half its value since Despegar went public, and Traveloka's CTO resigned late last year, issuing a scathing letter about the company's culture upon departure. However, those willing to bet on the growth of China and international markets should probably look at Booking Holdings, despite its seemingly inferior growth.
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While Expedia has also made international investments, it hasn't been in China, and they consist of a smaller $120 million stake in Despegar (NYSE: DESP), a Latin American travel platform, and a $350 million investment in southeast Asian travel platform Traveloka. The company's investment in Despegar has lost about half its value since Despegar went public, and Traveloka's CTO resigned late last year, issuing a scathing letter about the company's culture upon departure. However, those willing to bet on the growth of China and international markets should probably look at Booking Holdings, despite its seemingly inferior growth.
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While Expedia has also made international investments, it hasn't been in China, and they consist of a smaller $120 million stake in Despegar (NYSE: DESP), a Latin American travel platform, and a $350 million investment in southeast Asian travel platform Traveloka. The company's investment in Despegar has lost about half its value since Despegar went public, and Traveloka's CTO resigned late last year, issuing a scathing letter about the company's culture upon departure. However, those willing to bet on the growth of China and international markets should probably look at Booking Holdings, despite its seemingly inferior growth.
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While Expedia has also made international investments, it hasn't been in China, and they consist of a smaller $120 million stake in Despegar (NYSE: DESP), a Latin American travel platform, and a $350 million investment in southeast Asian travel platform Traveloka. The company's investment in Despegar has lost about half its value since Despegar went public, and Traveloka's CTO resigned late last year, issuing a scathing letter about the company's culture upon departure. However, those willing to bet on the growth of China and international markets should probably look at Booking Holdings, despite its seemingly inferior growth.
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728666.0
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2019-09-16 00:00:00 UTC
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3 Surprising Stocks Hitting New Lows Last Week
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DESP
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https://www.nasdaq.com/articles/3-surprising-stocks-hitting-new-lows-last-week-2019-09-16
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Pessimism wasn't in fashion last week. The Dow has moved higher for eight consecutive trading days, so it's not a surprise to see that less than 180 stocks across all three major U.S. exchanges hit new 52-week lows this past week. Some of the names will still surprise you.
Despegar.com (NYSE: DESP), Lyft (NASDAQ: LYFT), and Slack Technologies (NYSE: WORK) are three of the larger head-turning stocks to hit fresh lows last week. Let's explore why these three investments are failing their shareholders.
Image source: Lyft.
Despegar.com
Some stocks never live up to their name. Despegar.com is Latin America's leading online travel site, and its name is Spanish for "take off" -- something that the stock has sadly never been able to do outside of a brief pop after going public at $26 two years ago. The low-flying stock dipped into the single digits when it hit all-time lows last week.
Latin American stocks took a huge hit this summer after Argentina's pro-business president was defeated in a primary election, but Despegar.com itself was struggling long before the region fell out of favor with investors. Revenue has declined for four straight quarters on a reported basis. Gross bookings and revenue would've risen 15% and 5%, respectively, on a foreign exchange neutral basis, but that's not much of a consolation prize for stateside investors that are taking a hit on the currency depreciation.
Lyft
It's been a rough summer for ridesharing investors. Lyft's larger rival hit a new low two weeks ago, and this past week it was Lyft shares hitting their lowest levels since going public in March. Lyft is generating some pretty impressive growth, as revenue shot 72% higher in its latest quarter. Investors are just concerned with the huge losses and percolating regulation and legislation that may make life harder and more expensive to stay in business.
One analyst lowered his price target on Lyft last week, concerned about the California legislation that will reclassify ridesharing drivers as employees with wages and benefits instead of independent contractors. It's a chess game that has yet to fully play out, but it's easy to see why investors are getting skittish.
Slack
Another busted IPO hitting new lows in its short life as a public company is Slack. The provider of cloud-based workplace collaboration tools has been reeling since posting disappointing financial results earlier this month. In its first quarterly report as a public company, Slack offered up slowing top-line growth with guidance expecting even sharper decelerating in the current quarter.
Revenue rose 58% in the second quarter, a heady year-over-year gain but well off 82% revenue gain it scored for all of 2018. Slack's outlook calls for revenue to slow to a 46% to 48% clip for the current quarter -- with a larger quarterly deficit than what analysts were targeting. Slack also has the overhang of Microsoft offering its Slack-like Teams platform at no to little additional cost for Office 365 clients. Slack may be admittedly superior, but having a mass-market rival practically giving away its cloud-based collaborate solution is going to limit Slack's pricing power.
10 stocks we like better than Despegar.com
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft and Slack Technologies. The Motley Fool has the following options: long January 2021 $85 calls on Microsoft. The Motley Fool has a disclosure policy.
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Latin American stocks took a huge hit this summer after Argentina's pro-business president was defeated in a primary election, but Despegar.com itself was struggling long before the region fell out of favor with investors. Despegar.com (NYSE: DESP), Lyft (NASDAQ: LYFT), and Slack Technologies (NYSE: WORK) are three of the larger head-turning stocks to hit fresh lows last week. Despegar.com Some stocks never live up to their name.
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Despegar.com (NYSE: DESP), Lyft (NASDAQ: LYFT), and Slack Technologies (NYSE: WORK) are three of the larger head-turning stocks to hit fresh lows last week. Despegar.com Some stocks never live up to their name. Despegar.com is Latin America's leading online travel site, and its name is Spanish for "take off" -- something that the stock has sadly never been able to do outside of a brief pop after going public at $26 two years ago.
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Despegar.com (NYSE: DESP), Lyft (NASDAQ: LYFT), and Slack Technologies (NYSE: WORK) are three of the larger head-turning stocks to hit fresh lows last week. Despegar.com Some stocks never live up to their name. Despegar.com is Latin America's leading online travel site, and its name is Spanish for "take off" -- something that the stock has sadly never been able to do outside of a brief pop after going public at $26 two years ago.
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Despegar.com (NYSE: DESP), Lyft (NASDAQ: LYFT), and Slack Technologies (NYSE: WORK) are three of the larger head-turning stocks to hit fresh lows last week. Despegar.com Some stocks never live up to their name. Despegar.com is Latin America's leading online travel site, and its name is Spanish for "take off" -- something that the stock has sadly never been able to do outside of a brief pop after going public at $26 two years ago.
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b1371f41-58cb-457a-82ad-f2fa94546dd9
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728667.0
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2019-08-12 00:00:00 UTC
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Why Despegar.com and MercadoLibre Stock Fell Monday
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DESP
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https://www.nasdaq.com/articles/why-despegar.com-and-mercadolibre-stock-fell-monday-2019-08-12
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What happened
Shares of Argentina-based online travel company Despegar.com (NYSE: DESP) took a hit on Monday, falling about 12.3% as of 12:10 p.m. EDT. The stock's decline comes amid a pullback in many companies' stocks that are based in Argentina, including fast-growing e-commerce giant MercadoLibre (NASDAQ: MELI) and others. MercadoLibre stock was down about 9% Monday morning.
Bearishness toward companies in Argentina on Monday follows news that pro-business Argentina President Mauricio Macri lost a primary election over the weekend.
Image source: Getty Images.
So what
The current Argentina President received 32.1% support in a nationwide primary, compared to 47.7% support for opponent Alberto Fernandez, with most of the remaining votes going to other candidates, reported The Wall Street Journal on Monday. Nearly 100% of the ballots were counted at the time of this measurement, according to the Argentina government.
Highlighting the uncertainty this led to for the country's economy, the peso weakened about 25% relative to the dollar on Monday morning.
Now what
Despegar has been growing nicely recently, with second-quarter revenue rising 5% year over year in on a currency-neutral basis. But revenue was down 11% as reported. MercadoLibre's top-line growth was similarly negatively impacted by currency volatility. Revenue rose 102% year over year in its second quarter on a currency-neutral basis but was up 63% as reported.
More currency volatility from this election could make business even more difficult for these companies.
The country's official presidential election is scheduled for October.
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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MercadoLibre. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Argentina-based online travel company Despegar.com (NYSE: DESP) took a hit on Monday, falling about 12.3% as of 12:10 p.m. EDT. Now what Despegar has been growing nicely recently, with second-quarter revenue rising 5% year over year in on a currency-neutral basis. Highlighting the uncertainty this led to for the country's economy, the peso weakened about 25% relative to the dollar on Monday morning.
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Now what Despegar has been growing nicely recently, with second-quarter revenue rising 5% year over year in on a currency-neutral basis. What happened Shares of Argentina-based online travel company Despegar.com (NYSE: DESP) took a hit on Monday, falling about 12.3% as of 12:10 p.m. EDT. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.
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What happened Shares of Argentina-based online travel company Despegar.com (NYSE: DESP) took a hit on Monday, falling about 12.3% as of 12:10 p.m. EDT. Now what Despegar has been growing nicely recently, with second-quarter revenue rising 5% year over year in on a currency-neutral basis. The stock's decline comes amid a pullback in many companies' stocks that are based in Argentina, including fast-growing e-commerce giant MercadoLibre (NASDAQ: MELI) and others.
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What happened Shares of Argentina-based online travel company Despegar.com (NYSE: DESP) took a hit on Monday, falling about 12.3% as of 12:10 p.m. EDT. Now what Despegar has been growing nicely recently, with second-quarter revenue rising 5% year over year in on a currency-neutral basis. MercadoLibre stock was down about 9% Monday morning.
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c5a6ae34-ff93-4ab2-8c48-c2c8f7edcc59
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728668.0
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2019-08-09 00:00:00 UTC
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Despegar.com Corp Breaks Above 200-Day Moving Average - Bullish for DESP
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DESP
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https://www.nasdaq.com/articles/despegar.com-corp-breaks-above-200-day-moving-average-bullish-for-desp-2019-08-09
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nan
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nan
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $14.56, changing hands as high as $14.83 per share. Despegar.com Corp shares are currently trading up about 6.8% on the day. The chart below shows the one year performance of DESP shares, versus its 200 day moving average:
Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $21.055 as the 52 week high point — that compares with a last trade of $14.74.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $14.56, changing hands as high as $14.83 per share. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $21.055 as the 52 week high point — that compares with a last trade of $14.74. Despegar.com Corp shares are currently trading up about 6.8% on the day.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $14.56, changing hands as high as $14.83 per share. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $21.055 as the 52 week high point — that compares with a last trade of $14.74. Despegar.com Corp shares are currently trading up about 6.8% on the day.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $14.56, changing hands as high as $14.83 per share. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $21.055 as the 52 week high point — that compares with a last trade of $14.74. Despegar.com Corp shares are currently trading up about 6.8% on the day.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $14.56, changing hands as high as $14.83 per share. Despegar.com Corp shares are currently trading up about 6.8% on the day. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $21.055 as the 52 week high point — that compares with a last trade of $14.74.
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bf2e728e-0570-4df2-8fd1-45231db4d354
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728669.0
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2019-03-07 00:00:00 UTC
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Despegar.com, Corp. (DESP) Q4 2018 Earnings Conference Call Transcript
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DESP
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https://www.nasdaq.com/articles/despegarcom-corp-desp-q4-2018-earnings-conference-call-transcript-2019-03-07
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nan
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Despegar.com, Corp. (NYSE: DESP)
Q4 2018 Earnings Conference Call
March 07, 2019 , 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to Despegar Fourth Quarter 2018 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available on the Investors section of the company's website, www.investor.despegar.com. There will be an opportunity for you to ask questions at the end of today's presentation. This conference call is being recorded. As a reminder, all participants will be in listen-only mode.
Now, I'll turn the call over to Mr. Javier Kelly, Investor Relations. Please go ahead.
Javier Kelly -- Investor Relations
Good morning, everyone, and thanks for joining us today for a discussion of our fourth and full year 2018 results. In addition, to reporting financial results in accordance with US generally accepted accounting principles, we'll discuss certain non-GAAP financial measures and operating metric including foreign exchange neutral presentations. Investors should read the definition of these measures and metrics, including our press release carefully to ensure that they understand them. Non-GAAP financial measures and operating metrics should not be considered in isolation or substitute for or superior to GAAP financial measures and are provided as supplementary information only.
Before we begin our formal remarks, allow me to remind you that certain statements made during the course of the discussion may constitute forward-looking statements which are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to materially differ, including factors that may be beyond the company's control. For a description of these risks, please refer to our filings with the SEC and our press release.
Speaking on today's call, CEO, Damian Scokin, who will provide an overview of the fourth quarter and update you on our strategic priorities, and also Alberto Lopez Gaffney, our CFO, who will also discuss the quarter financials and our outlook for the year. After that, we'll open the call for your questions. Damian, please go ahead.
Damian Scokin -- Chief Executive Officer
Thank you, Javier. Good morning, everyone, and thank you for joining us. We appreciate your participation in our quarterly and year end conference call.
We continued to execute on our strategic priorities of leading with innovation, operating with excellence and driving higher margin packages, hotels and other products. We are also seeing the benefit of our investment in brand building to attract new customers and gain market share, and our continuous improvement in customer service initiatives, which also leads to increases in repeat purchase rate.
A key driver of our strategy is identifying new sources of growth, bring them organic or through acquisitions. Importantly, our strong cash position provides us the opportunity to move when the right opportunity at the right price comes along.
Now, let me provide a few comments about the quarter's results. We have built an omni-channel infrastructure to ensure our customers to have a great booking experience, no matter what platform they chose to use. Additionally, we continued to invest in the travel shopping experience and see a positive response from our customers in the form of improved customer satisfaction scores. While last year was challenging in many front, we have made significant commercial and operational progress. Stronger and agile execution of our strategic plan is helping us address continued macro and foreign exchange pressures.
As a result, we saw gross bookings increased 28% on an FX-neutral basis. Excluding Argentina, that experience at 51% FX devaluation in the year, transactions and room nights were up 18% and 33% year-over-year. We are strengthening our relationships with major hotel owners and vendors and gaining better access to inventory. We already have well established a good relationships with vendors. And in addition, to seen our inventory increase, we are optimizing the participation of our key hotels supplier with our top 100 hotels in Latin America, increasing by 270 basis points, their share of total LatAm hotel gross bookings.
As we continue to establish a closer relationship with our clients, mobile access in general and specifically our mobile app usage becomes critical to our strategy. We probably mentioned that mobile continues to gain traction, up 34% in Q4 and accounting for 36% of total transactions.
Most important, our strategy to gain market share to further strengthen our leading position is working. We increased market share a 130 basis points in Air despite an extremely challenging and volatile environment, which include softness in two of our largest market and overall construction in Latin America. We accomplish these through various initiatives, which include lowering air and customer fees earlier in the year, investing in technology and consumer insights and putting the right products in sight(ph)of the right customers at the right time.
As we continue building our leading position, we are focused on finding the right balance between growth and profitability. As you heard from us before, prioritizing the growth opportunities we see in Latin America, we lowered fees to reinforce our leading market position and increase our market share. Although this hurt our profitability. Despite 2018 turn out to be significantly different on the macro and F X front than what we thought at this time last year. Adjusted EBITDA increased by $9 million, excluding Argentina. Total adjusted EBITDA was down 58%, primarily due to the 51% currency devaluation. Also impacting EBITDA were the initiatives we have undertaken to drive market share gains, along with continued investments in technological development to enhance our product platform and services.
Turning to page four. Over the past year we have been able to solidify and grow both, total transactions and gross bookings. Our attractive value proposition, our ability to reach new customers and to retain and serve existing customers on and offline has been the driving factor behind the growth and market share gains, we have delivered. This also creates a unique position in the Latin American online travel industry. These distinguishing attribute provided the foundation to further strengthen our position in a currently challenged market.
As you can see on this chart, total transactions were up 11% in the quarter, with Air transactions increasing faster than packages, hotels and other travel products. This is largely due to the contribution of Argentina to the mix, which is experiencing a shift toward lower-margin product as a result of the continued industry contraction and FX volatility.
However, excluding Argentina packages, hotels and other travel products grew by 24% year-on-year, above 15% increase explained in Air transactions, with total transactions up 18%. We are also seeing further success in delivering on our key strategies. We leveraged our strength where we had the greatest growth opportunities. To that end, we remain focused on driving sales of higher margin packages, hotels and other products. And in Q4, stand-alone packages increased 38% year-on-year, remaining our fastest growing products.
On an FX neutral basis, gross bookings rose 28% year-on-year, a similar rate of growth as in the third quarter. As reported, gross bookings were down 4%, impacted by the macro disruption in Argentina. This, however, was significantly better than the low teen contraction experienced by the travel industry in Latin America in the same period. Excluding Argentina, as reported, gross bookings increased 16%. For the full year, gross bookings were up 6% on a reported basis and 29% on an FX neutral basis.
The better performance on a reported basis for the full year versus the fourth quarter reflects stronger currency at the start of the year. As a reminder, our international business has increased flexibility to transfer the devaluation effect to local currency terms in periods of devaluation, vis-a-vis domestic supplier. However, such flexibility is limited by the negative impact of macro disruptions on local consumers disposable income.
Moving to ASP. The average selling price or ASP was $451 per transaction, up 15% on an FX neutral basis. Continued FX weakness and mix shift from international to domestic travel, mainly in Argentina are impacting this year-on-year reported growth rate. This is also offsetting the successful mix shift to higher ASP packages.
Now turning to page five. Moving on to a discussion of some of the latest business development initiatives. One of the key components of our strategic plan is driving product and service innovation. Innovation continues to be our lifeline(ph)and sets us apart from the other players in the region. Our goal is to differentiate ourself through value, quality of service, a customized product offering and appealing financing alternatives. Our operating trends are reflecting of this. We are strategically investing in the most promising opportunities.
Let me now talk about the few. One that we are most excited about was our fourth quarter launch of our proprietary business, including Tour Operations and allotment or cupos. Briefly, the two operations consist of offering customers at package that includes a charter flight, accommodations and transportation. We believe that Despegar is uniquely equipped to manage inventory risk based on our understanding of tariff pattern follow our two decades of experience across different macro cycles and by offering these packages to a high demand area at peak travel season. This is a seasonal service, as a reminder, it is summer in South America right now, at the moment we are only offering these services from Argentina to different destinations in the Brazilian coast(ph).
We're also pleased with the early result, a total of 110 charter have flown with a load factor of 99%. In the case of Cupos, where we serve a block of plane seats or hotel nights at more attractive rates to offer our customers. Risk is mitigated as there is cutoff date when we can return their reserve fees, room back to supplier and no risk or penalty. I have already discussed this activity we are having with cross selling and increasing stand-alone packages. But it is worth mentioning again as it is a key initiative for us.
Call centres are an attractive opportunity for us, as they provide another platform for customers to book travel. It is also an opportunity to onboard new client. We are very pleased with customer response as call centers gross bookings from our seven key market increased 124% sequentially in the quarter. And our key benefit, ASPs are significantly higher than online booking.
We are also encouraged by the success of our technology upgrade, further enhancing the traveling experience. A good example of this is the success we are seeing in our mobile app. Consumers are still downloading at very high levels, increasing 27% year-on-year in this quarter. As a result, our cumulative downloads totaled 49 million by year-end.
Most importantly, transactions of higher margin stand-alone packages sold via the mobile app almost doubled year-on-year. As you can also see on this slide, we continue to add features to our mobile app to enhance the customer experience. We are pleased with the success of our recent product and service launches, which we believe deliver the type of added benefit many consumers are seeking. Despite our success to date, we see even more opportunity to interact with not only our existing customers, but also to attract new consumers.
I will now turn the call to Alberto to discuss the financial results for the quarter.
Alberto Lopez Gaffney -- Chief Financial Officer
Thank you, Damian, and good morning, everyone. Let's take a deeper look at our operations on a regional basis on slide six. We are pleased to report above industry FX neutral gross booking expansion and market share gains across all key markets. In Brazil, our largest market accounting 41% of transactions, we achieved a 12% year-on-year increase in transactions and 32% in FX neutral gross bookings.
As reported, gross bookings were up 13% of the mix shift from domestic to international travel, along with growth in higher margin packages, partially offset the 15% currency depreciation.
In Argentina, we continue to expand our market share despite the industry contraction. Thanks to initiatives we have undertaken, we achieved these even as transactions were down -- were down 12% reflecting a challenging macro backdrop.
FX neutral gross bookings in the country were up 26% year-on-year and ASP's were in line with inflation. However, with the mix shift to domestic travel driven by the 51% peso devaluation, we did not manage to offset the impact from the currency depreciation.
Across the rest of Latin America, we achieved growth of 29% in transactions and 27% in FX neutral gross bookings. We're particularly pleased with above industry growth in transactions in two of our more competitive markets. Transactions in Mexico rose 10% year-on-year, while Colombia posted accelerated growth of 61%. This solid performance reflects successful execution of our strategy to grow sales of higher margin packages, hotels and international air travel in these markets. On a reported basis, ASPs across the rest of LatAm declined 6%, reflecting currency depreciation in the region. However, gross bookings increased 21%.
Turning now to the financial results on slide seven. FX neutral revenues were up 9% year-on-year in the quarter despite market contraction, as we continued to successfully execute our growth strategy. Importantly, in addition to gaining market share, we continued to make progress on our goal of increasing the share of higher margin products. Packages, hotels and other transactions accounted for 62% of total revenue this quarter, compared with 54% in fourth quarter 2017. As reported revenues declined 13% in the quarter to $133 million.
Factors contributing to this decline include, as in the prior quarter revenues were significantly impacted by the FX translation effect, resulting mainly from the sharp peso devaluation in Argentina, and to a lesser extent from currency depreciation in Brazil.
Revenues were also affected by the planned reductions in Air customer fees and discounts in package transactions, implemented early in the year that are helping us achieve further share gains in a soft demand environment.
The weaker customer demand also contributed to a decline in supplier bonuses this quarter. Last, another important factor impacting revenues was the continued mix shift from international to lower price domestic destinations. This was mainly the case in Argentina, given the sharp peso devaluation, which resulted in a drop of over 720 basis points in the share of international transactions. At a consolidated level, we experienced a slight mix shift of 11 basis points from international to lower margin domestic transactions.
Taken together, these factors resulted in a 65 basis point year-on-year contraction in revenue margin to 11% in the quarter. More specifically, revenues per transactions went down 11% for packages, hotels and other travel products segment and 32% in the Air segment.
Turning to slide eight, our initiatives supporting cross selling and share gains across our key markets, along with enhanced customer service resulted in a 12% year-on-year decline in FX neutral gross profit to $99 million in the quarter. In addition to our investments in lower air fees and customer fees concerned packages, this quarter we also stepped up the availability and duration of instalment plans in Argentina after a reduction in third quarter of '18, following the steep hikes in interest rates.
We did this mainly due to our Black Friday and Cyber Monday industry events, which resulted in significant increase in revenues. This quarter we also had a higher mix of transactions where Despegar was the credit card merchant of record instead of the airline suppliers, allowing us to offer more attractive customer financing options.
Of note, being merchant of record has a negative impact on our cost of revenue. We also incurred a higher fulfillment cost as we seek to further income, customer satisfaction and drive net promoter scores. Cost reduction is an area we will continue to focus on in the coming year.
By contrast, marketing expense declined 7% year-on-year, but increased 180 basis points as a percentage of revenues. As lower ASPs more than offset the benefit from regional currency devaluation on costs, lower marketing investments and higher efficiencies. However, when measured per transaction, we achieved savings of 16% in this category.
Moving down the P&L on slide nine. Our strategy to prioritize top line growth and drive further share gains together with macro disruption impacted profitability in the quarter.
Adjusted EBITDA declined 58% year-on-year, with a margin of almost 11% compared to nearly 22% a year-ago.
Importantly, excluding our online operations, adjusted EBITDA increased by $9 million year-on-year in the quarter, and by $15 million for the full year. We also reported negative operating cash flow of $5 million this quarter, compared with cash flow generation of $25 million a year-ago. This was mainly due to higher inventories and cash advances to travel suppliers, reflected our new seasonal proprietary business and lower growth in supplier payables, given slower sales growth.
During the quarter we also made capital investments of $9 million in technology, hardwork and office expansion. We also purchased 600,500 shares in the fourth quarter '18 for a total cost of $10 million. In total, we repurchased 1.5 million shares during 2018 at a total cost of $26 million.
Summing up, let's move to page 10. In closing, we are very pleased with our result this quarter and in the full year with respect to seen significant progress with our strategic initiatives. By contrast, our financial results were impacted by overall contraction in the travel industry, as well as micro and FX volatility and initiatives we undertook to drive share gain.
As we look to the current year, we see our results following the macro environment. Our continuing weaker trends early in the year and improving in the second half. This is mainly driven by the combination of our focus to continue gaining market share across the region, while finding the right balance between growth and profitability.
We are expecting Brazil and the rest of LatAm to be our growth drivers in 2019. Based on economists consensus and our view, Argentina's economy is expected to hit bottom in first half '19 and gradually begin improving toward the second half of the year.
In Brazil, the consensus and our view is that, the macro to slowly continue the recovering trend and accelerate as the year advances. Against these backdrop, we are expecting sequential margin improvement to track the economic outlook.
Although, we expect some macro challenges again in 2019, we will continue to do what we do best. With our decades experience operating in the region, combined with our deep understanding of and focus on our customers, we have a distinct competitive advantage. We will continue to opportunistically build on our leading position and expand our product and service offerings.
We remain focused on driving long-term shareholder value by delivering balanced top and bottom line growth, while invested in differentiated capabilities to expand our competitive advantage. Our strategy is to further build our market share, improve customer service and drive long-term profitable growth.
As I reflect on the progress that we've made against our strategic plan and initiatives we have under way for 2019 and beyond, I'm confident and excited about the future of this company. The Latin American travel market is large and under-penetrated via online booking. We are very well positioned to succeed.
This concludes our prepared remarks. We will now take your questions. Operator, please open the line for questions.
Questions and Answers:
Operator
Yes, thank you. We will now begin the question-and-answer session. (Operator Instructions) And the first question comes from Eric Sheridan with UBS.
Eric Sheridan -- UBS -- Analyst
Thanks for taking the question, and thanks for all the details. Guys, I want to dig in a little bit on gross margin, came in weaker than we thought in Q4. So two part question. Wanted to understand a little bit of how much of that was product mix versus maybe a new normal of lower gross margins going forward? And how we should think about temporary impact on that versus a more permanent impact on that? And the second part would be asset(ph)product mix, how should we think about the mix between packages and Air, and how it might evolve as you go through 2019? What are you seeing from consumers versus competitors in terms of how that product mix might evolved? Thanks so much.
Alberto Lopez Gaffney -- Chief Financial Officer
And. Hi, Eric. Good morning. Alberto Lopez Gaffney speaking here. How are you doing?
Eric Sheridan -- UBS -- Analyst
Great. Thank you.
Alberto Lopez Gaffney -- Chief Financial Officer
So Eric, in addressing your question, we certainly -- I think we have been implemented a strategy in order to make the most of the macro disruption that have taken place in the region. And we -- from that perspective, we believe that the strategy has been working and continues to work from the perspective that we have been gaining market share, and particularly in those regions of different say, in countries particularly Argentina, OK, where our competitors are much weaker. So from that perspective, clearly, we have invested significantly, and when it comes to those investments, particularly when it comes to the impact on the P&L.
So certainly the take rates, gross margin, etcetera, they have been affected. We do not -- we believe that as the economies start to recover, particularly Argentina and secondly the Brazil, and then we can discuss about how we see the pace of that recovery. Okay. We will be in a position to recover margins so -- addressing your first question, one of the points of the questions like, is this a new norm? We do not think this as a new norm. Okay.
Secondly, with regards to outlook and our lead for the very last -- the reasons for the contraction that I've been peripherally I have already addressed. But when it comes to outlook, given the disruption that actually took place during 2018, the year that we finalized already. I think it's important as we start comparing and projecting and delivering the outlook of this company to think about the business less so on an year-on-year, let's say, Q4 versus Q4 the prior year and more on a sequential basis. Okay. Because the structure of the industry have adjusted materially.
As such, we believe that there were two key drivers, particularly Brazil that today is clearly our top market has started to recover by the end of 2018 and already in -- first quarter of '19 and we expect that that recover. Okay. We'll continue slowly in the trend throughout 2019.
In the case of Argentina -- In the case of Argentina, clearly, I think we are going through the toughest time in the country. I think all the macro economic metrics point to that, and also that is what we are seeing from the actual trade and the volumes and the level of activity we are experiencing. So, clearly, Argentina is expected to hit bottom in this first half of '19.
All in all, we expect that -- that there will be a sequential or a margin improvement/bottoming to track this economic outlook. Okay. And then we will continue adjust, let's say, the mix of investment to gain market share in order to also look for recovery of margins and increases in profitability. So that is how we are actually seeing. And I hope by this I addressed you guys.
Now, going into what is the impact and how we are -- and why that margins have contracted. Okay. Clearly, as you look into the contraction year-on-year, like the Q4 '17 vis-a-vis Q4 '18. And over there you see a gap of 100 basis points in the take rate. So when it comes to take rate, a relevant portion of that gap actually is explained by our fees. Fees we're charging to our clients. And that goes, mostly in Air, but -- and then less than half of that goes to lodging. So that is how we actually see the revenue, the take rate contraction year-on-year from 12% to around 11%.
As you go into the gross margin. Clearly the driver there is twofold. But most importantly, the real driver -- the most relevant driver becomes the cost on instalments. As you know, rates in the region, but most particularly in Argentina have gone up tremendously. That's why, as you might recall, in the third quarter of this -- past 2018, we actually -- we took our food from the better when it comes to financing -- financing our clients. Financially went up again in the fourth quarter as rates came down. That is what we believe should be an improvement going forward, because the current rate that we have in the 50s in local currency, we believe that we are normalization of the economy and that's our outlook. Again, clearly, the macro should end up evolving as per our review and most importantly, as per economies consensus, that would be another source of gross margin recovery.
Last, what you see margins is lower volumes. And lower volumes not only affect, let's say, below once you get into fixed cost, but also affects what is the type of backends that you are actually getting from our suppliers. Because overall volumes are coming down (inaudible) activity. To complement this question of like, what are the drivers for these margin contraction, then you go into the mix shift. And then when it comes to mix, in this past quarter, overall, we continued to see the trend toward domestic traveling vis-a-vis international traveling. As you know, ASPs are materially more attractive when it comes to international business than the domestic business. Some geographies as they were actually in the past year look year-on-year were actually kind of bottoming, let's say, Brazil, and in Brazil international travel got stronger, but in most of the other geographies with FX devaluation on the (inaudible) region and particularly Argentina where the shift was from international to domestic.
I'll pause for a minute, because I realize this has been a long answer. And see if you have any further follow-ups?
Eric Sheridan -- UBS -- Analyst
No. That's great. Thank you so much.
Operator
Thank you. And the next question comes from Edward Yruma(ph)of KeyBanc Capital Markets.
Edward Yruma -- KeyBanc Capital Markets. -- Analyst
Hey, good morning, guys. And thanks for taking my questions. I guess, first is just a follow-up to the first question. So with Brazil showing signs or plan to see signs of macro improvement, are you starting to see the Brazilian tourists again more international travel or they are still focused on local? And then second, obviously some very favorable commentary on your initial attempt to tours. How do we think about your ability to scale the tour business, is this a longer term project or can you ramp it pretty quickly based on demand? Thank you.
Damian Scokin -- Chief Executive Officer
Hi. This is Damian. How are you? For the first part of the question, yes, we see some improvements in the Brazilian demand vis-a-vis fourth quarter and an initial return to a more international travel mix. Again, early indications, but they are nice, there is a nice break of the trend that we saw in Brazil in the past, so that's positive. As per the second part of your question, the scalability of our tour operations, we are very happy with the initial results of this effort and in terms of the percentage of bookings that that operation represents of the overall bookings of Despegar is a very tiny portion of it. So the size -- the space for growth we see as very significant.
Edward Yruma -- KeyBanc Capital Markets. -- Analyst
Great. Thank you very much.
Operator
Thank you. And the next question comes from Kevin Kopelman with Cowen and Company.
Emily Elizabeth DiNovo -- Cowen and Company -- Analyst
Hi, good morning. This is Emily on for Kevin. I was wondering if you could give us an update on the competitive situation in Latin American online travel, including both the local and the global players? Thanks.
Damian Scokin -- Chief Executive Officer
Sure. Hi, Emily. In general, during the last quarter we saw local competition kind of pulling back on some of their investments and their growth, that's particularly true in Argentina and to a lesser extent in Mexico and Brazil. As per the global OTA's, as you know, they do not disclose their numbers by geographic region, but when you track traffic, market investments and visitors and another indications we track, we see different behaviors by market. I would say, not significant changes in most of Latin American market, except Mexico and Brazil, where some particular players have increased their marketing expenditures and now that's not. In general, a balanced quarter in terms of competition.
Emily Elizabeth DiNovo -- Cowen and Company -- Analyst
Okay, thank you.
Operator
Thank you. And the next question comes from Brian Nowak with Morgan Stanley.
Alex Wong -- Morgan Stanley -- Analyst
Hi. This is actually Alex Wong on for Brian. Two questions. First, I appreciate all the commentary on the strategy around omni-channel and continuing to invest in the traveler experience. Perhaps maybe would it be possible to help us size as the new initiatives and how much you spent on that investments in 2018? As you look into 2019, what do you see as kind of the one or two key investments you'll be making as you continue to build that strategy?
And then second question around some of the consumer fees and discounts and packages. Can you maybe help us understand just where you are in that progress? And how you see that progressing in 2019?
Damian Scokin -- Chief Executive Officer
Okay. On the first piece, initiatives for 2018 and investments we've made on those. Without getting into the specific of different investments, I will just mention perhaps these three largest one, which is increasing our presence in terms of omni-channel, we are very confident about the prospects of our call center operations, not only in terms of additional bookings, but on bookings targeted to higher ASP products and we are -- we are at a very early stage there. So that's one of the key initiatives. The other one is, as we spoke before, two operations, we believe that's an area where Despegar has significant growth prospects, given it's -- the region footprint and the volume gives us a good advantage in terms of hedging our risk across many markets. And finally, one initiative that we have not talked so much is mobile, the share of our mobile bookings has increased significantly, this is, as you all know, extremely important form a standpoint in terms of customer loyalty, acquisition costs and the type of satisfaction that our mobile experience provides to our customers. So that's a fair initiative that's going to be critical for us in 2019.
The second part of your question, Alex, if I recall correctly was regarding consumer fees, what's the prospects of that. I would say that, overall, as Alberto mentioned before, the way in which we've been balancing growth and profitability over the last quarter according to market conditions has been to reduce consumer fees, particularly on the Air side in order to take advantage of the market conditions and gain market share. That as we alway said in the part will vary according to market evolution. So far we believe that strategy is still valued and we've been aggressive also during this quarter in order to sustain high growth rates.
We are confident from our macro forecast that the market will go on a rebound on the second half of the year and that we expect to give us the opportunity to give -- to return to higher fee levels, but again, this will all depend on the market evolution. I hope this answers your questions?
Alex Wong -- Morgan Stanley -- Analyst
That's helpful. Thanks, Damian.
Operator
Thank you. (Operator Instructions) Alright, as there are no more questions at the present time, I would like to return the floor to Damian fo any closing comments.
Damian Scokin -- Chief Executive Officer
Thank you, operator. I would like to thank all of you for joining the call today. As usual, if you have any further questions, please do not hesitate to contact any of us and we'll be happy to follow up. Thanks very much. And we are all looking forward to seeing you on our next call. Bye.
Operator
Bye. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Duration: 45 minutes
Call participants:
Javier Kelly -- Investor Relations
Damian Scokin -- Chief Executive Officer
Alberto Lopez Gaffney -- Chief Financial Officer
Eric Sheridan -- UBS -- Analyst
Edward Yruma -- KeyBanc Capital Markets. -- Analyst
Emily Elizabeth DiNovo -- Cowen and Company -- Analyst
Alex Wong -- Morgan Stanley -- Analyst
More DESP analysis
Transcript powered by AlphaStreet
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see ourTerms and Conditionsfor additional details, including our Obligatory Capitalized Disclaimers of Liability.
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Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We believe that Despegar is uniquely equipped to manage inventory risk based on our understanding of tariff pattern follow our two decades of experience across different macro cycles and by offering these packages to a high demand area at peak travel season. Despegar.com, Corp. (NYSE: DESP) Q4 2018 Earnings Conference Call March 07, 2019 , 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to Despegar Fourth Quarter 2018 Earnings Conference Call.
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ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to Despegar Fourth Quarter 2018 Earnings Conference Call. Despegar.com, Corp. (NYSE: DESP) Q4 2018 Earnings Conference Call March 07, 2019 , 8:00 a.m. A slide presentation is accompanying today's webcast and is available on the Investors section of the company's website, www.investor.despegar.com.
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Despegar.com, Corp. (NYSE: DESP) Q4 2018 Earnings Conference Call March 07, 2019 , 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to Despegar Fourth Quarter 2018 Earnings Conference Call. A slide presentation is accompanying today's webcast and is available on the Investors section of the company's website, www.investor.despegar.com.
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-- Analyst Emily Elizabeth DiNovo -- Cowen and Company -- Analyst Alex Wong -- Morgan Stanley -- Analyst More DESP analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. Despegar.com, Corp. (NYSE: DESP) Q4 2018 Earnings Conference Call March 07, 2019 , 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to Despegar Fourth Quarter 2018 Earnings Conference Call.
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2019-03-06 00:00:00 UTC
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Pre-Market Earnings Report for March 7, 2019 : CNQ, KR, BURL, HRB, TECD, IGT, CPG, SSYS, DESP, COOP, MEI, CRCM
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DESP
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https://www.nasdaq.com/articles/pre-market-earnings-report-march-7-2019-cnq-kr-burl-hrb-tecd-igt-cpg-ssys-desp-coop-mei
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The following companies are expected to repor t earnings prior to market open on 03/07/2019. Visit our Earnings Calendar for a full list of expected earnings releases.
Canadian Natural Resources Limited ( CNQ ) is reporting for the quarter ending December 31, 2018. The oil company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.14. This value represents a 54.84% decrease compared to the same quarter last year. In the past year CNQ and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CNQ is 10.92 vs. an industry ratio of 3.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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The following companies are expected to repor t earnings prior to market open on 03/07/2019. Canadian Natural Resources Limited ( CNQ ) is reporting for the quarter ending December 31, 2018. The oil company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.14.
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Visit our Earnings Calendar for a full list of expected earnings releases. In the past year CNQ and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CNQ is 10.92 vs. an industry ratio of 3.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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Visit our Earnings Calendar for a full list of expected earnings releases. In the past year CNQ and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CNQ is 10.92 vs. an industry ratio of 3.60, implying that they will have a higher earnings growth than their competitors in the same industry.
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The following companies are expected to repor t earnings prior to market open on 03/07/2019. Visit our Earnings Calendar for a full list of expected earnings releases. Canadian Natural Resources Limited ( CNQ ) is reporting for the quarter ending December 31, 2018.
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2019-02-19 00:00:00 UTC
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DESP Makes Bullish Cross Above Critical Moving Average
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DESP
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https://www.nasdaq.com/articles/desp-makes-bullish-cross-above-critical-moving-average-2019-02-19
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In trading on Tuesday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $18.10, changing hands as high as $18.22 per share. Despegar.com Corp shares are currently trading up about 2.5% on the day. The chart below shows the one year performance of DESP shares, versus its 200 day moving average:
Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $17.94.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $18.10, changing hands as high as $18.22 per share. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $17.94. Despegar.com Corp shares are currently trading up about 2.5% on the day.
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In trading on Tuesday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $18.10, changing hands as high as $18.22 per share. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $17.94. Despegar.com Corp shares are currently trading up about 2.5% on the day.
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In trading on Tuesday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $18.10, changing hands as high as $18.22 per share. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $17.94. Despegar.com Corp shares are currently trading up about 2.5% on the day.
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In trading on Tuesday, shares of Despegar.com Corp (Symbol: DESP) crossed above their 200 day moving average of $18.10, changing hands as high as $18.22 per share. Despegar.com Corp shares are currently trading up about 2.5% on the day. The chart below shows the one year performance of DESP shares, versus its 200 day moving average: Looking at the chart above, DESP's low point in its 52 week range is $11.11 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $17.94.
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2018-09-12 00:00:00 UTC
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Apple Did What We All Expected; Alphabet Prepares to Do Something We Didn't
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DESP
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https://www.nasdaq.com/articles/apple-did-what-we-all-expected-alphabet-prepares-do-something-we-didnt-2018-09-12
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In this Motley Fool Money podcast, host Chris Hill and senior Motley Fool analysts Jason Moser, Matt Argersinger, and Ron Gross dig into some of the week's more interesting news out of Wall Street, and while they can't help but lead off with the massive milestone passed by Apple (NASDAQ: AAPL) , there was plenty more to talk about. Baidu (NASDAQ: BIDU) is being troubled by the worrisome rumor that Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is heading back to China. TripAdvisor (NASDAQ: TRIP) is paying for the failure of its instant-booking feature to pay off.
Tesla (NASDAQ: TSLA) investors are totally focused on the road ahead, which allowed them to ignore the ugly quarter in the company's rearview mirror. There were upbeat results from Square (NYSE: SQ) , Take-Two Interactive (NASDAQ: TTWO) and Activision Blizzard (NASDAQ: ATVI) , but unappetizing news from Blue Apron (NYSE: APRN) and Red Robin (NASDAQ: RRGB) . And of course, as always, the Fool analysts talk about the stocks on their radar.
A full transcript follows the video.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 6, 2018
The author(s) may have a position in any stocks mentioned.
This video was recorded on Aug. 3, 2018.
Chris Hill: It's the Motley Fool Money radio show! I'm Chris Hill. Joining me in studio this week, senior analysts Jason Moser, Matt Argersinger, and Ron Gross. Good to see you as always, gentlemen! We have the latest headlines from Wall Street, we will dig into the restaurant industry with our guest, Jonathan Maze, and as always, we'll give you an inside look at the stocks on our radar.
But we begin with the first company to hit a market cap of $1 trillion -- shares of Apple up this week after third quarter revenue came in north of $53 billion. Ron, this isn't even their big quarter.
Ron Gross: [laughs] But what's not to like? It's very impressive, with revenue up 17%, even though iPhone volume was flat. They've been able to increase price points, the Service business up 30%. I love that that's becoming a more important part of this business. Repurchased shares, gobs and gobs of shares. $43.5 billion of its own stock during the first six months of this year, $220 billion of stock since it announced the buyback program in March 2012. Still has $243 billion of cash on the balance sheet, and plenty more buybacks to come. The dividend is there. It's only 1.4%. I imagine that will be increased. We'll have a nice shareholder yield company going forward.
Matt Argersinger: That's what's so impressive. By buying back so much stock over the last couple of years, they kept upping the bar on the share price they needed to hit one trillion. It just makes my defeat feel so much worse, because I had been riding Amazon 's train for a few years now. I think it's nice, because now we get to talk about the first company to get to $2 trillion, and you can bet who I'm going with.
Jason Moser: I was with Matty along that ride, calling for Amazon. I think we both probably knew, though, the chances favored Apple. It made a lot of sense. It didn't have that far to go. There's a reason why they're there. It's a phenomenal business, a phenomenal company. We've talked a lot through the years and quarters, it's still primarily a phone company. The big question was, how do they address that? Can they make the leap beyond just that?
To Ron's point, iPhone sales, the growth is abating a little bit, but they've really turned it up on the Services side. I think they continue to bring a little bit more value to the table for the people who are in that Apple universe already. It's a very relevant business that should continue to be relevant for many years to come.
Argersinger: I have to say, one thing we talked about in the past with Apple is, with the dependency on the iPhone, what would ultimately happen to its pricing power, with so much competition? But the average selling prices for the phones has kept going up. It's been very impressive.
Moser: They got a lot of that from the iPhone X, or 10, or whatever it is. God, why wouldn't you just name it 10? That's the one black mark on this company! Just put a 10! They bumped that price up considerably. It was $1,000. They're not selling those things like hotcakes, but they're selling enough that it really helps juice that average selling price, along with that iPhone 8.
Gross: By the way, the stock is not expensive. There's no irrational exuberance going on here, even though the trillion-dollar number sounds big. I don't know, 16X forward earnings? Relatively reasonable.
Hill: Remember when the big question around Apple was, "Is this company ever going to pay a dividend?" Then, once they did start paying a dividend, you had some people out there saying, "That's it for the stock. It's going to be 3M and people are only going to buy it for the dividend. There's no growth."
Interesting week for Baidu. Second quarter profits for the Chinese search engine giant came in 45% higher than a year ago but shares of Baidu falling this week on reports that Alphabet is planning to launch a censored version of its own search engine in China. What do you think, Matty?
Argersinger: Google throws the wet blanket. Baidu's results were fantastic. I remember seeing this stock price go up $15 in after-hours trading, only to drop by almost $15 when it opened the next morning because of the Google news. It would be easy for me to dismiss the Google news and say, "Don't worry about it, Baidu has been dominating in China. They haven't had to deal with Google for almost a decade now. They've had this dominance, in terms of search impressions, advertisers." And, does Google really want to launch a search engine where they have to restrict words like "human rights" and "democracy?" It doesn't feel like Google! But, keep this in mind: depending on what report you believe, Android has something like a 70-80% market share on smartphone operating systems in China. So, if this Dragonfly or whatever Google ends up calling it does pass the Chinese censors and becomes able to be sold and serviced in China, an enormous lead right off the bat if they can get it onto the Android system.
Hill: TripAdvisor's stock has been having a good run in 2018. That ended this week when TripAdvisor's second quarter revenue came in just 2% higher than a year ago. You tell me, Jason, is this a legitimate concern? Or is this a speed bump kind of quarter for TripAdvisor?
Moser: I'm not going to be an apologist here. I think we've all been pretty critical with TripAdvisor and the bungle they made with the instant booking platform. But, going through the release, it does feel like this was a pretty harsh reaction to what wasn't really a bad quarter. But, I think any time you have a business like TripAdvisor, that's run into the top line growth headwinds that they've run into, the market is only going to pay up so much for that.
The good thing is, they have a platform that's still very engaged and growing. Users are growing, reviews are growing, and people are doing more with those reviews. It's encouraging to see that they're growing the non-hotel side of the business, as well. A bit of margin pressure there for the quarter. That was also a bit of a comparables thing there.
All in all, it's a healthy platform. I think management really lost a lot of time and money in that instant booking strategy, which just didn't work out. But, it seems like the market is liking the stock a little bit more after that initial sell-off. We'll have to see. I don't know that I'd be terribly concerned right now, but it was a harsh reaction.
Hill: Do you have a sense of what the next move is for TripAdvisor? Obviously, as you said, they put a lot of time and effort into the instant booking. I'm wondering if there's some other monetization strategy that they're working on.
Moser: Primarily, it's Attractions. They're really trying to get to that point where TripAdvisor is a platform that not only you consult whenever you go wherever you go, but then, when you want to book something to do, you're able to do that through TripAdvisor. Hey, listen, when I went to the Bahamas, I told you, everything I found there that we did, we found it on TripAdvisor. Pig island! Do I need to say anything else there? That's worth gold.
As long as they can figure out a way to effectively monetize that going forward on a sustainable basis -- and I think they will -- that's certainly what they're gunning for. And, bringing over a seamless experience to the phone, because those monetization challenges still exist.
Hill: You had me at pig island. Shares of Tesla up more than 15% this week despite a second quarter report that featured Tesla's worst loss ever. Ron, they lost more than $700 million, but the confidence that profits are just around the corner really seems to be there.
Gross: I guess so. Investors were focused on, they hit the 5,000-sedan goal, they say they're going to be able to up it to their 6,000-sedan goal. They said they would not need to raise more cash, which I think was a big deal. Investors calmed down after he said that. He said they would be profitable in the second half of 2018. Get this -- Musk expects Tesla will record a profit in all subsequent quarters. Now, who wouldn't want to be a shareholder of that?
Hill: Didn't we have that recently for, what was it, American Airlines ' CEO coming out and saying, "We're going to be profitable from now until the end of time?"
Argersinger: "We will never lose money ever again," was roughly the quote.
Gross: He's obviously full of bluster and makes big promises. Interestingly, the Street also reacted to the fact that he apologized this call for being rather rude to analysts on the last call. I'm a forgiving guy, that's fine. It's kind of weird that he had to apologize because he can't hold his tongue. I'm not a big fan. I think he's too much of a salesman for my taste. I actually finally bit the bullet, pulled the plug and asked for my $1,000 deposit back. I decided not to pursue a purchase of the Model 3. I just got fatigued by the whole thing.
Hill: Real quick, how long were you waiting? From the time that you put down $1,000 to the time that you said, "I'd like my money back." How long?
Gross: It was in the second half of 2017 that I asked, so it hasn't been a full year yet, but it's probably coming up on it.
Argersinger: I think Tesla is a paradox. In a way, short sellers are pounding this stock. Of course, they got obliterated this past week. That tends to happen to companies like this. But, actually, if I'm a Tesla short seller, I'm rooting for this company to be successful, start generating a profit. Something you said, Chris -- when they start generating consistent profits, maybe it'll be valued just like all the other automakers, and it wouldn't get this crazy valuation that it gets in the market!
Gross: You're going to get tweets that say it's not a car company, it can't be valued as a car company.
Argersinger: I get it!
Moser: A bit of an unrelated note here, but sort of related -- I was reading recently where Jeff Bezos is pumping a lot of money and resources into Blue Origin, his space company. Now, after reading that book, The Space Barons , which talks a lot about Bezos and Musk and their race to space, I really do believe that SpaceX is Musk's true love. If he needs to start devoting more time and/ or resources to SpaceX, I just can't help but feel like Tesla is set up to suffer from his absence if there's any kind of a prolonged absence. SpaceX is his baby, his passion. Tesla, maybe not so much.
Hill: Good second quarter results from Square. Shares up despite Square's guidance being a little lower than analysts were hoping for. Jason Moser, the war on cash is alive and well.
Moser: [laughs] The war on cash continues! I'll tell you, I saw a lot of Square equipment in many of the stores I visited in Rhode Island and Connecticut earlier this week. Gross payment volume is really the important metric to watch with a company like this. This tells us precisely the power of the network and how it's growing, because it draws a direct line to the question of that growth to the money that's actually flowing through all of their systems. GPV was up 30% from a year ago to $21.4 billion.
Now, you compare that to a company like PayPal , they just reported gross payment volume for the quarter of $139 billion. My reason for bringing that up, Chris, is simply to show you that not only is PayPal still light years ahead, but it also shows there's a tremendous market opportunity out there. Square is working on trying to capture that. Products like Square Appointments, Square for Retail, Square for Restaurants, they are really going after all sorts of angles there, getting these smaller businesses that need the benefit from these cheaper payments solutions and better technology to help them grow their businesses. Square is doing a great job in building this out.
There is a blueprint out there to be profitable in this line of work. Obviously, PayPal is the poster child for that. So, you can see how powerful the business can be if they keep doing what they're doing, and there's no reason to believe they shouldn't one day get there.
Hill: Video games stocks in the spotlight this week. First quarter profits for Take-Two Interactive were higher than expected thanks to its Grand Theft Auto franchise. Activision Blizzard's second quarter profits got a boost from Call of Duty , but shares falling despite that report. Take that in any order you want, Matty.
Argersinger: I think it's a tale of expectations with these companies. Take-Two's results were just a lot better than expected from investors. Their annual guidance is increased because of that. Activision Blizzard also had a quarter, but just didn't raise their full-year guidance. I think there are some questions from analysts, that maybe they're expecting more of a tepid second half to the year.
But, for both of these companies, there's so much built into the next five or six months. You have Red Dead Redemption 2 coming in October. That's going to be Take-Two's biggest franchise release since the last Grand Theft Auto . For Activision, we have the annual Call of Duty game that's coming out in the fall, but also, a new iteration of World of Warcraft and Hearthstone and some other things. I think these companies are doing better than people thought right now, but it all hinges on how good holiday video game sales are, and they look like they're going to be pretty good.
Hill: I was going to ask about the holiday quarter. Is that the most crucial quarter for these types of companies? We've talked before that video games as a business tends to be very lumpy.
Argersinger: It's very lumpy. This tends to be the slowest period right now. We're in the summer, hopefully most kids aren't at home playing video games, although they're playing Fortnite .
Gross: They are.
Argersinger: Yes, it's really all about that. Video games build their publishing schedule around the holidays.
Hill: Shares of Blue Apron fell more than 30% this week after second quarter results were a disaster. Ron, Blue Apron is not just burning cash, they're losing customers, and that may be the even bigger problem.
Gross: It's a really bad report. Loss of customers, down 24% from last year, down 9% from the end of March. We recall, they had a bit of a snafu with one of their facilities, and that hurt operations. They can't seem to get it right. It continues to spiral down.
The one good thing, and this is not a sustainable way to run your business, is that they were able to cut costs. They did a good job there. Gross margins were actually up, administrative costs down. I'll applaud them for that. But it's the business model here that's really keeping them from succeeding.
One interesting note is, they're trying to sell their kits into Costco right now. I think that's interesting. I'll be curious to see how that goes. But I don't think that's the savior for the business.
Hill: Does this industry work? It seems like we've talked about, whether it's Blue Apron or any of the competitors in the meal kit delivery space, whatever one thinks of the actual product -- Matty, I know we've talked before about HelloFresh . I've tried a couple of different ones. I like them. Not enough to keep it going. It makes me wonder if this works as a stand-alone business, or if the future of meal kit delivery is really as a loss leader for a larger business.
Argersinger: I think there's a future. I just think, right now, there are too many players in the marketplace. You mentioned it, you've tried several of them, I have, too. I think that's the problem. People are trying this one, this one. There almost needs to be some consolidation. There needs to be one big player that can reach 10 million customers and eventually succeed. But it's hard to see right now.
Gross: Completely right.
Hill: This week, Red Robin Gourmet Burgers warned that second quarter profits will be lower than previously thought, and that was all investors needed to hear. Shares of Red Robin down more than 20%, and hitting their lowest point in five years, Jason.
Moser: I mean, you cannot guide down the way they guided down and not expect a total market exodus, and that's what we got. These are cheeseburgers, at the end of the day. It's not rocket science. It's a very competitive industry to begin with. Management actually used the word hyper-competitive in the call, which I found interesting. They made the point that it's very difficult to grow sales in this hyper-competitive environment.
Most everybody else out there is focused on cutting prices, offering discounts and deals and whatnot. Red Robin is trying to take a little bit of a different tack here and maintain pricing, convincing consumers that they are getting something special by going there. Hey, bottomless steak fries, I can get on board with that. I just don't know how many people out there really care about it, at the end of the day.
It's not a small business. They do own most of their stores, so, that's encouraging. But, we also see with companies like Chipotle , that can be a sword that cuts both ways. It's not a bad business, but it's a very difficult market. Restaurants are tough to sustainably do well.
Hill: Restaurants are tough, and it's a competitive environment. We're also in a good economy. I was thinking that when Cheesecake Factory reported this week, similar type of results in terms of the stock. What happens to some of these restaurant chains when the economy invariably hits a recession at some point?
Moser: I think some of them have to disappear. The world just doesn't need some of those concepts out there. We always ask the rhetorical question about JCPenney -- does the world really need JCPenney? No, probably not. I think we'll see some of those restaurants fade away, as well.
Hill: Why do you think Shake Shack gets the benefit of the doubt? They're also in the burger business. I'm not saying that they're running their business exactly the same way. That's a $2 billion company. Red Robin is $500 million. Matty, if I offered you, you could own all of Red Robin or I'll give you a quarter of Shake Shack, which of those two are you taking?
Argersinger: Oh, gosh! I'm going Red Robin all the way. I don't have the right number in front of me, but I think at some point, the average Shack was valued at something like $20 million. I don't know if that still holds true today, but the valuation on Shake Shack just confounds me.
Gross: There's some sort of cult following in both the people who go eat there and the people who buy the stock that doesn't exist with a staider company like Red Robin.
Argersinger: It sounds like Tesla. You could have just said the same thing about Tesla.
Hill: Same question, Ron, I'm giving you all of Red Robin or a quarter of Shake Shack. Which one are you taking?
Gross: I think I'm going Red Robin.
Hill: Really? You're a New York guy!
Gross: We have a Shack being built right around the corner from my home. I've never been in one. I'll visit it and I'll get back to you.
Hill: You know what? You're going to change your tune.
Argersinger: And all the Amazon New HQ people are going to be moving into your neighborhood, and they'll love going there!
Hill: Let's get to the stocks on our radar. Our man behind the glass, Steve Broido, is going to hit you with a question. Ron Gross, you're up first. What are you looking at this week?
Gross: I have Equinix (NASDAQ: EQIX) , EQIX. It's a real estate investment trust that's the largest operator of data centers in the world. Strong competitive advantage because of that installed base. Obviously capitalizing on the growth in data consumption and cloud outsourcing. Strong management team. 61 consecutive quarters of revenue growth. Again, it's a real estate investment trust, so you have a nice dividend that I think will grow over time.
Hill: 61 consecutive quarters?
Gross: You got it!
Hill: [laughs] That's a nice little streak there.
Gross: I probably just jinxed it.
Hill: Steve Broido, question about Equinix?
Steve Broido: Where is real estate going in the next ten years? We look like we have prices that are very high, homes are very expensive. Commercial real estate, going up or down?
Gross: I think it's an interest rate play here. If I had to guess, I would say there'll be some tough times, but the trend over our lifetime, for the next 20, 50, 100 years, will be up. But, there will be some blips as we get some interest rate hurt on the way.
Hill: Jason Moser, what are you looking at this week?
Moser: I feel like I'd be letting Mac down if I didn't bring up Teladoc (NYSE: TDOC) , so I'm going to go ahead and bring up Teladoc, actually Teladoc Health now, ticker TDOC. Teladoc released earnings this week and they chalked up another very strong, if not predictable, quarter. One of the nice things about the business is, when you have a membership model like that, it can be fairly predictable.
They are adopting a new corporate brand, as I mentioned, Teladoc Health. It's a subtle difference, but it speaks to their ultimate strategy, the goal of being a comprehensive provider in the telehealth space. It's going to utilize the acquisitions they've made recently like Best Doctors and Advanced Medical, trying to become more than just that one app on your phone that you use if you have a sore throat or something.
Hill: Steve, question about Teladoc Health?
Broido: What's the first field of medicine that Teladoc will displace entirely?
Moser: The first field of medicine. That's a good question. We always hear them talk about flu season and how it's having such a great impact on keeping a lot of sick people out of emergency rooms. If we can keep all of the flu sufferers out of hospitals and send them prescriptions and get them cured that way -- let's disrupt the flu!
Gross: I'm in!
Moser: Why not? They're disrupting the flu!
Hill: Matt Argersinger, what are you looking at this week?
Argersinger: I'm looking at despegar.com (NYSE: DESP) , ticker DESP --
Gross: You made that up.
Argersinger: No! I have to give credit to one of our young analysts at The Fool, Emily Flippen. She came up with this idea. It's the leading online travel agency in Latin America. It came public last year. It's down about 40% from its IPO. It's had some changes in the executive ranks, the CFO recently left. But, revenue is growing 20% and Expedia owns a 13% stake with an option to take a majority stake in the company. So, I'm starting to get interested in this one.
Hill: Despegar.com, Steve.
Broido: What are some hot travel spots in Latin America, if you live in Latin America?
Argersinger: If you live in Latin America, oh my gosh.
Broido: Are you making a trip to the U.S.?
Argersinger: No, I think you're staying in the region. There are some beautiful beaches in Mexico and Brazil, and some great hiking you can do in Argentina. I have no idea what I'm talking about.
Gross: Cabo, baby!
Argersinger: Yeah, Cabo. Go to Cabo!
Hill: Three stocks. Steve, do you have one you want to add to your watchlist?
Broido: I recently bought Teladoc, so I therefore will be watching Teladoc.
Moser: Hey, now!
Hill: Alright, guys, thanks for being here.
Argersinger: Thanks, Chris!
Hill: That's going to do it for this week's show. Our engineer is Steve Broido, our producer is Dr. Mac Greer. I'm Chris Hill. Thanks for listening! We'll see you next week!
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Chris Hill owns shares of AMZN and PYPL. Jason Moser owns shares of Apple, CMG, PYPL, Square, Teladoc, and TripAdvisor. Matthew Argersinger owns shares of Activision Blizzard, Alphabet (C shares), AMZN, Baidu, CMG, Square, Teladoc, and Tesla. Ron Gross owns shares of Activision Blizzard, Alphabet (C shares), AMZN, Apple, Baidu, and COST.
The Motley Fool owns shares of and recommends Activision Blizzard, Alphabet (A shares), Alphabet (C shares), AMZN, Apple, Baidu, CMG, PYPL, Square, Take-Two Interactive, Tesla, and TripAdvisor. The Motley Fool owns shares of Red Robin Gourmet Burgers and has the following options: long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, short September 2018 $50 calls on Red Robin Gourmet Burgers, and short September 2018 $80 calls on Square. The Motley Fool recommends MMM, COST, Equinix, and Teladoc. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Tesla up more than 15% this week despite a second quarter report that featured Tesla's worst loss ever. Shares up despite Square's guidance being a little lower than analysts were hoping for. Activision Blizzard's second quarter profits got a boost from Call of Duty , but shares falling despite that report.
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Shares of Tesla up more than 15% this week despite a second quarter report that featured Tesla's worst loss ever. Shares up despite Square's guidance being a little lower than analysts were hoping for. Activision Blizzard's second quarter profits got a boost from Call of Duty , but shares falling despite that report.
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Shares of Tesla up more than 15% this week despite a second quarter report that featured Tesla's worst loss ever. Shares up despite Square's guidance being a little lower than analysts were hoping for. Activision Blizzard's second quarter profits got a boost from Call of Duty , but shares falling despite that report.
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Shares of Tesla up more than 15% this week despite a second quarter report that featured Tesla's worst loss ever. Shares up despite Square's guidance being a little lower than analysts were hoping for. Activision Blizzard's second quarter profits got a boost from Call of Duty , but shares falling despite that report.
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2018-09-10 00:00:00 UTC
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3 Reasons Despegar.com Stock Keeps Hitting New Lows
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https://www.nasdaq.com/articles/3-reasons-despegarcom-stock-keeps-hitting-new-lows-2018-09-10
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We're approaching the one-year anniversary of Despegar.com 's (NYSE: DESP) IPO, and it's fair to say that shareholders would prefer to see this marriage annulled. Latin America's leading online travel site operator has shed more than half of its value since peaking in March, and it's kicking off this new trading week with its stock hitting another fresh low on Monday.
Despegar.com wasn't a scorcher when it went public at $26 in mid-September of last year, but it wasn't a disappointment. The stock opened at $29 on its first day of trading, and by March of this year, the shares were trading as high as $36.56. The last few months have been brutal, with the stock in a swift and steady descent. Despegar.com now finds itself waffling about in the mid-teens. Let's go over the reasons why the market isn't boarding this once promising travel portal.
1. Slow growth is a deal breaker
Investors aren't shying away from travel sites or even Latin American dot-coms as long as growth is strong. Despegar.com hasn't lived up to those expectations. Revenue grew just 4% in its latest quarter , half the growth that Wall Street pros were targeting.
We knew going ahead of last year's IPO that top-line moves were going to be lumpy. Revenue had declined slightly in 2016 before bouncing back in 2017. Revenue had actually topped 20% for five consecutive quarters before buckling in this year's second quarter.
2. Travel trends aren't very flattering
Investors buying into growth industries leaning on Brazil -- Despegar's largest market, accounting for 42% of its revenue -- and Argentina have come to live with the wild currency fluctuations, but there are underlying trends at Despegar.com that are also proving to be a pressure point for investors. Despegar pointed out in its second-quarter earnings call that average selling prices are declining in Argentina even at the local-currency level as the bookings shift away from high-margin international ticketing and to the lower-margin realm of domestic travel. Plummeting currencies in Argentina and other Latin American countries are a huge factor keeping locals vacationing closer to home, where they can get more bang for their diminishing buck.
This all culminates in a problematic bottom line, with the out-of-favor dot-com earning less than half of what it earned a year earlier. Despegar fell short of analyst profit expectations for the second quarter. It had beaten Wall Street targets in its three previous reports.
3. Regaining growth won't come cheap
One of the stock's price target downgrades last week came from Brian Nowak at Morgan Stanley, lowering his price goal to $22 from $24 while sticking to his neutral equal-weight rating on the shares. Nowak argues that Despegar.com will have to invest in order to return to double-digit revenue growth, and that's going to weigh on the company's already challenging margins.
Investors clamoring for stability also didn't like hearing that its CFO was leaving the company for a noncompeting job to be closer to his stateside family. He stepped down two weeks ago but is taking a seat on the company's board of directors, so it's not as if he's totally distancing himself from Despegar.com.
The long-term prospects remain somewhat encouraging for Despegar, and the sharp sell-off since its springtime peak makes it a compelling value here. Investors may want to wait until revenue growth or margins improve before hopping aboard. It's a pretty turbulent flight right now.
10 stocks we like better than Despegar.com, Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar pointed out in its second-quarter earnings call that average selling prices are declining in Argentina even at the local-currency level as the bookings shift away from high-margin international ticketing and to the lower-margin realm of domestic travel. We're approaching the one-year anniversary of Despegar.com 's (NYSE: DESP) IPO, and it's fair to say that shareholders would prefer to see this marriage annulled. Despegar.com wasn't a scorcher when it went public at $26 in mid-September of last year, but it wasn't a disappointment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. We're approaching the one-year anniversary of Despegar.com 's (NYSE: DESP) IPO, and it's fair to say that shareholders would prefer to see this marriage annulled. Despegar.com wasn't a scorcher when it went public at $26 in mid-September of last year, but it wasn't a disappointment.
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Travel trends aren't very flattering Investors buying into growth industries leaning on Brazil -- Despegar's largest market, accounting for 42% of its revenue -- and Argentina have come to live with the wild currency fluctuations, but there are underlying trends at Despegar.com that are also proving to be a pressure point for investors. We're approaching the one-year anniversary of Despegar.com 's (NYSE: DESP) IPO, and it's fair to say that shareholders would prefer to see this marriage annulled. Despegar.com wasn't a scorcher when it went public at $26 in mid-September of last year, but it wasn't a disappointment.
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Travel trends aren't very flattering Investors buying into growth industries leaning on Brazil -- Despegar's largest market, accounting for 42% of its revenue -- and Argentina have come to live with the wild currency fluctuations, but there are underlying trends at Despegar.com that are also proving to be a pressure point for investors. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! We're approaching the one-year anniversary of Despegar.com 's (NYSE: DESP) IPO, and it's fair to say that shareholders would prefer to see this marriage annulled.
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728674.0
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2018-08-17 00:00:00 UTC
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Despegar.com Enters Oversold Territory (DESP)
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https://www.nasdaq.com/articles/despegarcom-enters-oversold-territory-desp-2018-08-17
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $16.625 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 61.5. A bullish investor could look at DESP's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares:
Looking at the chart above, DESP's low point in its 52 week range is $16.625 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $16.90.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $16.625 per share. A bullish investor could look at DESP's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $16.625 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $16.90.
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The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $16.625 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $16.90. In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $16.625 per share. A bullish investor could look at DESP's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $16.625 per share. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $16.625 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $16.90. A bullish investor could look at DESP's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Friday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $16.625 per share. A bullish investor could look at DESP's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $16.625 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $16.90.
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728675.0
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2018-08-16 00:00:00 UTC
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Despegar.com Keeps Missing the Runway
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DESP
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https://www.nasdaq.com/articles/despegarcom-keeps-missing-runway-2018-08-16
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The "fasten your seatbelts" light may not be on, but there's no denying that Despegar.com (NYSE: DESP) continues to make its gradual descent. Shares of Latin America's leading online travel site operator moved lower after posting disappointing financial results on Thursday morning. The stock is hitting all-time lows in the process, though to be fair, it has only been public for 11 months.
One of last year's quietest dot-com IPOs hasn't made much of a splash since going public at $26 in mid-September of last year. The stock is now falling to the high teens, and with growth slowing and at least one key executive moving on this summer, it's going to be hard to regain Wall Street's confidence anytime soon.
A bumpy ride
Revenue rose a mere 4% to $128.3 million in the second quarter. Despegar's top-line gains decelerated to single-digit growth despite a 12% uptick in gross bookings and an 18% surge in transactions. Analysts were holding out for revenue rising 8%, to $133.6 million.
The bottom line didn't get any better despite Despegar's shift away from low-margin airfare ticketing to higher-margin hotel and travel package offerings. Adjusted EBITDA declined, and Despegar's profit clocked in at less than half of what it earned a year earlier. The net profit of $0.02 a share was well short of the $0.07 a share that Wall Street was expecting.
Local currency depreciation is a factor, as Brazil -- accounting for 42% of Despegar's business -- saw its currency slide 15% over the past year. Argentina has taken an even bigger hit, depreciating 30% over the past quarter. However, it doesn't help that average selling prices have declined as business in Argentina leaned more on domestic travel than higher-margin international itineraries. It's hard to spring for an overseas trip when your currency is tanking.
Despegar received a chilly reception when it went public last year, and the climate isn't getting any kinder. It doesn't help that revenue rose 24% in its first report as a public company, and after a short-lived acceleration, when revenue rose nearly 30% in the fourth quarter of last year, it has kicked off the first half of this year with quarterly revenue growth of 22% and now 4%. Despegar's CFO announcing last month that he would be leaving for a stateside job to be closer to his family is just more salt in the wound. Despegar's board has cleared the way for a $75 million share buyback, something that's not a horrendous idea for a broken IPO, but it won't be enough to support the share price until the fundamentals show signs of turning around.
The long-term potential for Despegar is obviously there. Latin America is going to be a huge market once it licks its heavy socioeconomic and inflationary risks, and we're still early in the online migration cycle. Unfortunately, investors like growth in their growth stocks, and this is something that's been choppy for Despegar as revenue growth dipped 3% in 2016 before bouncing back last year. This story will take time to play out, and that's going to shake out impatient growth investors until we see signs of a legitimate lift-off.
10 stocks we like better than Despegar.com, Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The "fasten your seatbelts" light may not be on, but there's no denying that Despegar.com (NYSE: DESP) continues to make its gradual descent. Despegar's top-line gains decelerated to single-digit growth despite a 12% uptick in gross bookings and an 18% surge in transactions. The bottom line didn't get any better despite Despegar's shift away from low-margin airfare ticketing to higher-margin hotel and travel package offerings.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The "fasten your seatbelts" light may not be on, but there's no denying that Despegar.com (NYSE: DESP) continues to make its gradual descent. Despegar's top-line gains decelerated to single-digit growth despite a 12% uptick in gross bookings and an 18% surge in transactions.
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Despegar's board has cleared the way for a $75 million share buyback, something that's not a horrendous idea for a broken IPO, but it won't be enough to support the share price until the fundamentals show signs of turning around. Unfortunately, investors like growth in their growth stocks, and this is something that's been choppy for Despegar as revenue growth dipped 3% in 2016 before bouncing back last year. The "fasten your seatbelts" light may not be on, but there's no denying that Despegar.com (NYSE: DESP) continues to make its gradual descent.
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Unfortunately, investors like growth in their growth stocks, and this is something that's been choppy for Despegar as revenue growth dipped 3% in 2016 before bouncing back last year. The "fasten your seatbelts" light may not be on, but there's no denying that Despegar.com (NYSE: DESP) continues to make its gradual descent. Despegar's top-line gains decelerated to single-digit growth despite a 12% uptick in gross bookings and an 18% surge in transactions.
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728676.0
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2018-08-10 00:00:00 UTC
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The 3 Stocks on the MFM Team's Radar This Week
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DESP
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https://www.nasdaq.com/articles/3-stocks-mfm-teams-radar-week-2018-08-10
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In this segment from the Motley Fool Money podcast, host Chris Hill asks senior Motley Fool analysts Jason Moser, Matt Argersinger, and Ron Gross to give us the lowdown on some companies that caught their attention recently. Their picks this week: leading data center operator Equinix (NASDAQ: EQIX) , distance medicine leader Teledoc (NYSE: TDOC) , and South America's leading online travel agency, Despegar (NYSE: DESP) .
A full transcript follows the video.
10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walmart wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
The author(s) may have a position in any stocks mentioned.
This video was recorded on Aug. 3, 2018.
Chris Hill: Let's get to the stocks on our radar. Our man behind the glass, Steve Broido, is going to hit you with a question. Ron Gross, you're up first. What are you looking at this week?
Ron Gross: I have Equinix, EQIX. It's a real estate investment trust that's the largest operator of data centers in the world. Strong competitive advantage because of that installed base. Obviously capitalizing on the growth in data consumption and cloud outsourcing. Strong management team. 61 consecutive quarters of revenue growth. Again, it's a real estate investment trust, so you have a nice dividend that I think will grow over time.
Hill: 61 consecutive quarters?
Gross: You got it!
Hill: [laughs] That's a nice little streak there.
Gross: I probably just jinxed it.
Hill: Steve Broido, question about Equinix?
Steve Broido: Where is real estate going in the next ten years? We look like we have prices that are very high, homes are very expensive. Commercial real estate, going up or down?
Gross: I think it's an interest rate play here. If I had to guess, I would say there'll be some tough times, but the trend over our lifetime, for the next 20, 50, 100 years, will be up. But, there will be some blips as we get some interest rate hurt on the way.
Hill: Jason Moser, what are you looking at this week?
Jason Moser: I feel like I'd be letting Mac down if I didn't bring up Teladoc, so I'm going to go ahead and bring up Teladoc, actually Teladoc Health now, ticker TDOC. Teladoc released earnings this week and they chalked up another very strong, if not predictable, quarter. One of the nice things about the business is, when you have a membership model like that, it can be fairly predictable.
They are adopting a new corporate brand, as I mentioned, Teladoc Health. It's a subtle difference, but it speaks to their ultimate strategy, the goal of being a comprehensive provider in the telehealth space. It's going to utilize the acquisitions they've made recently like Best Doctors and Advanced Medical, trying to become more than just that one app on your phone that you use if you have a sore throat or something.
Hill: Steve, question about Teladoc Health?
Broido: What's the first field of medicine that Teladoc will displace entirely?
Moser: The first field of medicine. That's a good question. We always hear them talk about flu season and how it's having such a great impact on keeping a lot of sick people out of emergency rooms. If we can keep all of the flu sufferers out of hospitals and send them prescriptions and get them cured that way -- let's disrupt the flu!
Gross: I'm in!
Moser: Why not? They're disrupting the flu!
Hill: Matt Argersinger, what are you looking at this week?
Matt Argersinger: I'm looking at despegar.com, ticker DESP --
Gross: You made that up.
Argersinger: No! I have to give credit to one of our young analysts at The Fool, Emily Flippen. She came up with this idea. It's the leading online travel agency in Latin America. It came public last year. It's down about 40% from its IPO. It's had some changes in the executive ranks, the CFO recently left. But, revenue is growing 20% and Expedia owns a 13% stake with an option to take a majority stake in the company. So, I'm starting to get interested in this one.
Hill: Despegar.com, Steve.
Broido: What are some hot travel spots in Latin America, if you live in Latin America?
Argersinger: If you live in Latin America, oh my gosh.
Broido: Are you making a trip to the U.S.?
Argersinger: No, I think you're staying in the region. There are some beautiful beaches in Mexico and Brazil, and some great hiking you can do in Argentina. I have no idea what I'm talking about.
Gross: Cabo, baby!
Argersinger: Yeah, Cabo. Go to Cabo!
Hill: Three stocks. Steve, do you have one you want to add to your watchlist?
Broido: I recently bought Teladoc, so I therefore will be watching Teladoc.
Moser: Hey, now!
Chris Hill has no position in any of the stocks mentioned. Jason Moser owns shares of Teladoc. Matthew Argersinger owns shares of Teladoc. Ron Gross has no position in any of the stocks mentioned. Steve Broido owns shares of Teladoc. The Motley Fool recommends Equinix and Teladoc. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Their picks this week: leading data center operator Equinix (NASDAQ: EQIX) , distance medicine leader Teledoc (NYSE: TDOC) , and South America's leading online travel agency, Despegar (NYSE: DESP) . Matt Argersinger: I'm looking at despegar.com, ticker DESP -- Gross: You made that up. Hill: Despegar.com, Steve.
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Their picks this week: leading data center operator Equinix (NASDAQ: EQIX) , distance medicine leader Teledoc (NYSE: TDOC) , and South America's leading online travel agency, Despegar (NYSE: DESP) . Matt Argersinger: I'm looking at despegar.com, ticker DESP -- Gross: You made that up. Hill: Despegar.com, Steve.
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Their picks this week: leading data center operator Equinix (NASDAQ: EQIX) , distance medicine leader Teledoc (NYSE: TDOC) , and South America's leading online travel agency, Despegar (NYSE: DESP) . Matt Argersinger: I'm looking at despegar.com, ticker DESP -- Gross: You made that up. Hill: Despegar.com, Steve.
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Matt Argersinger: I'm looking at despegar.com, ticker DESP -- Gross: You made that up. Their picks this week: leading data center operator Equinix (NASDAQ: EQIX) , distance medicine leader Teledoc (NYSE: TDOC) , and South America's leading online travel agency, Despegar (NYSE: DESP) . Hill: Despegar.com, Steve.
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2018-07-09 00:00:00 UTC
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4 Potential Multibagger Stocks for 2018 and Beyond
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https://www.nasdaq.com/articles/4-potential-multibagger-stocks-for-2018-and-beyond-2018-07-09
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With the stock market near record highs, it can be hard for investors to know where to turn. The stocks that are on sale lately are stodgy dividend payers. Those are great for income and reliability, but they're not likely to lead to life-changing fortunes.
Source: Shutterstock
On the other hand, the big and popular tech stocks, such as the FAANG names, are already widely-known and highly-priced. Fortunes are rarely made following the crowd, either.
Taking that into account, here are four potential multibagger stocks that are more off the beaten path. They have smaller market caps, are earlier in their growth stages, and haven't become consensus "must-own" stocks, yet. These are riskier names, and some of them could end up failing.
5 of the Best Stocks Under $10 for 2018
That's the risk that comes with hunting for multibagger stocks. That said, here are four names to put on your watch list that could triple or more in coming years.
Potential Multibagger Stocks For 2018 And Beyond: JD.com (JD)
Source: Daniel Cukier via Flickr
The ongoing tariff drama between the United States and China continues to take a heavy toll on Chinese stocks. On Friday, a series of tariffs went into effect, showing that all the noise is starting to turn into a more tangible risk.
Not surprisingly, Chinese stocks, as measured by the Xtrackers Harvest CSI 300 China A ETF (NYSEARCA: ASHR ) are having a rough 2018. The ASHR ETF is down 19% year to date and almost 30% from its January peak.
With that selloff comes opportunity. Leading Chinese online retailer JD.com (NASDAQ: JD ) has sold off again. While many investors think of Alibaba (NYSE: BABA ) as the Amazon (NASDAQ: AMZN ) of China, it's much closer to eBay (NASDAQ: EBAY ).
eBay isn't a terrible company by any means. But, Amazon won because it controlled the whole purchasing experience, whereas eBay, as a marketplace for third-party vendors, has had much less success in becoming truly dominant.
JD.com, as the leader in authentic high-quality goods, has the edge against Alibaba in selling to the emerging wealthier Chinese consumer. JD's dramatic lead in logistics also positions it to win against Alibaba in convenience and reliability.
3 Best-Performing Single-Country ETFs of 1H
Ultimately, China is large enough for two large online retailers. And both companies are growing aggressively outside of their home market. However, given Alibaba's way larger market cap than JD, JD stock is the obvious compelling growth play here.
Selling at less than 1x price/sales, that ratio could easily triple without looking too expensive. And, with JD growing sales more than 30%/year, there is plenty of upside coming on that front as well.
Potential Multibagger Stocks For 2018 And Beyond: Despegar.com (DESP)
Source: Shutterstock
Despegar.com (NYSE: DESP ) is Latin America's leading online travel agency. Despegar is Spanish for "take off," and while DESP stock has had a bumpy run since its IPO, it should head upward in coming quarters.
The company dominates the travel market in Brazil, Argentina, and Uruguay, and is building out its presence in other attractive markets including Colombia and Mexico. Unlike many recent tech IPOs and competitors in the online travel space, Despegar is already solidly profitable.
It is trading at 31x trailing and 21x forward earnings. Combined with a more-than-20% annual revenue growth rate, Despegar is a cheap stock with plenty of upside.
Shares have fallen from an IPO in the high-$20s and a subsequent peak around $36 to just $20 now. It's been a victim of horrible economic and political news out of Argentina and Brazil. But, as a diversified player with revenue from across Latin America, it will continue to grow, regardless of the stumbles any one economy may face.
4 Top-Ranked Oil Stocks to Deliver Strong Profits in 2H18
Stocks in this space tend to trade for at least 4x sales, compared to DESP stock at 2.5x currently. Throw in a 20% growth rate, and Despegar stock could double fairly quickly.
Potential Multibagger Stocks For 2018 And Beyond: Carbon Black (CBLK)
Source: Shutterstock
Like Despegar.com, Carbon Black (NASDAQ: CBLK ) is a recent IPO that launched in the mid-$20s, ran up to $35, and has landed back in the low $20s with a thud. Carbon Black is a U.S.-based business in the security software space, however.
It specializes in analyzing and encrypting data for clients using machine learning algorithms. And, like the SAAS stocks as a whole, CBLK stock has slumped in recent trading sessions.
With that comes a nice chance to buy back below the IPO price. The company is well-positioned to benefit in the growth in cloud security services, and partnerships with Dell and IBM (NYSE: IBM ) give it access to a lot of potential new customers. The company increased sales 39% last year, on top of 65% growth in 2016, showing the multibagger stock potential here.
Perhaps most importantly, almost 90% of Carbon Black's revenue is recurring. This means that once Carbon Black acquires a customer, it tends to hold onto them for a long time. While Carbon Black is still losing money, its margins are improving as revenue grows.
Twitter (TWTR) Reportedly Suspends 70 Million Fake Accounts
Once it hits the crossover point and becomes profitable, shares could soar. Wall Street is enamored of this sort of business selling security services on a subscription basis, and the revenue growth rate certainly impresses as well.
Potential Multibagger Stocks for 2018 and Beyond: Uxin (UXIN)
Source: Maher Najm via Flickr
Considering the selloff in Chinese stocks discussed above, JD.com isn't the only interesting potential multibagger stock from that country at the moment. That brings us to Uxin Ltd (NASDAQ: UXIN ).
Uxin is another recent IPO. Its IPO priced at $9/share, and has slumped into the 7s thanks to the concerns around Chinese companies. That sets up a chance to buy below the offer price. What's the reason to buy Uxin?
Simply put, Uxin is China's leading online used car marketplace. The company has more than 40% market share in its space, and reported that its website facilitated 68% more vehicle transactions in 2017 as compared to 2016.
The company also hails with a powerful investor/backer, leading Chinese search engine company Baidu Inc (NASDAQ: BIDU ). They appear to derive a lot of free search engine traffic, which helps keep costs down. That said, Uxin is still quite unprofitable at this point.
5 ROE Stocks to Buy as Proposed Auto Tariffs Rattle Markets
However, revenue more than doubled in 2017, and gross profit exploded. If growth continues at anything close to its current rate, Uxin stock should trade multiples above its current $7.50 price in coming years.
At the time of this writing, the author owned shares of JD, IBM and DESP.
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The post 4 Potential Multibagger Stocks for 2018 and Beyond appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Potential Multibagger Stocks For 2018 And Beyond: Despegar.com (DESP) Source: Shutterstock Despegar.com (NYSE: DESP ) is Latin America's leading online travel agency. Despegar is Spanish for "take off," and while DESP stock has had a bumpy run since its IPO, it should head upward in coming quarters. Unlike many recent tech IPOs and competitors in the online travel space, Despegar is already solidly profitable.
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Potential Multibagger Stocks For 2018 And Beyond: Despegar.com (DESP) Source: Shutterstock Despegar.com (NYSE: DESP ) is Latin America's leading online travel agency. Potential Multibagger Stocks For 2018 And Beyond: Carbon Black (CBLK) Source: Shutterstock Like Despegar.com, Carbon Black (NASDAQ: CBLK ) is a recent IPO that launched in the mid-$20s, ran up to $35, and has landed back in the low $20s with a thud. Despegar is Spanish for "take off," and while DESP stock has had a bumpy run since its IPO, it should head upward in coming quarters.
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4 Top-Ranked Oil Stocks to Deliver Strong Profits in 2H18 Stocks in this space tend to trade for at least 4x sales, compared to DESP stock at 2.5x currently. Potential Multibagger Stocks For 2018 And Beyond: Despegar.com (DESP) Source: Shutterstock Despegar.com (NYSE: DESP ) is Latin America's leading online travel agency. Despegar is Spanish for "take off," and while DESP stock has had a bumpy run since its IPO, it should head upward in coming quarters.
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Potential Multibagger Stocks For 2018 And Beyond: Despegar.com (DESP) Source: Shutterstock Despegar.com (NYSE: DESP ) is Latin America's leading online travel agency. Despegar is Spanish for "take off," and while DESP stock has had a bumpy run since its IPO, it should head upward in coming quarters. Unlike many recent tech IPOs and competitors in the online travel space, Despegar is already solidly profitable.
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2018-07-05 00:00:00 UTC
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Oversold Conditions For Despegar.com (DESP)
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DESP
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https://www.nasdaq.com/articles/oversold-conditions-despegarcom-desp-2018-07-05
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $20.03 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 46.9. A bullish investor could look at DESP's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares:
Looking at the chart above, DESP's low point in its 52 week range is $20.03 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $20.18.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $20.03 per share. A bullish investor could look at DESP's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $20.03 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $20.18.
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The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $20.03 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $20.18. In trading on Thursday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $20.03 per share. A bullish investor could look at DESP's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $20.03 per share. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $20.03 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $20.18. A bullish investor could look at DESP's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Thursday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $20.03 per share. A bullish investor could look at DESP's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $20.03 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $20.18.
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2018-06-29 00:00:00 UTC
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What Falling Estimates & Price Mean for Despegar.com (DESP)
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https://www.nasdaq.com/articles/what-falling-estimates-price-mean-for-despegar.com-desp-2018-06-29
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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Despegar.com, Corp.DESP , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in DESP.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen one estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 78 cents a share a month ago to its current level of 69 cents.
Also, for the current quarter, Despegar.com has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 4 cents a share from 6 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.4% in the past month.
Despegar.com Corp. Price and Consensus
Despegar.com Corp. Price and Consensus | Despegar.com Corp. Quote
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Transportation - Services industry, you may instead consider a better-ranked stock - Echo Global Logistics, Inc. ECHO . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .
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Echo Global Logistics, Inc. (ECHO): Free Stock Analysis Report
Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One such stock that you may want to consider dropping is Despegar.com, Corp.DESP , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in DESP. Also, for the current quarter, Despegar.com has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 4 cents a share from 6 cents over the past 30 days.
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One such stock that you may want to consider dropping is Despegar.com, Corp.DESP , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. Click to get this free report Echo Global Logistics, Inc. (ECHO): Free Stock Analysis Report Despegar.com Corp. (DESP): Free Stock Analysis Report To read this article on Zacks.com click here. A Zacks Rank #4 (Sell) further confirms weakness in DESP.
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One such stock that you may want to consider dropping is Despegar.com, Corp.DESP , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. Also, for the current quarter, Despegar.com has seen one downward estimate revision versus no revisions in the opposite direction, dragging the consensus estimate down to 4 cents a share from 6 cents over the past 30 days. Click to get this free report Echo Global Logistics, Inc. (ECHO): Free Stock Analysis Report Despegar.com Corp. (DESP): Free Stock Analysis Report To read this article on Zacks.com click here.
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One such stock that you may want to consider dropping is Despegar.com, Corp.DESP , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. Click to get this free report Echo Global Logistics, Inc. (ECHO): Free Stock Analysis Report Despegar.com Corp. (DESP): Free Stock Analysis Report To read this article on Zacks.com click here. A Zacks Rank #4 (Sell) further confirms weakness in DESP.
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2018-06-13 00:00:00 UTC
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Despegar.com Enters Oversold Territory (DESP)
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DESP
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https://www.nasdaq.com/articles/despegarcom-enters-oversold-territory-desp-2018-06-13
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $21.91 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 70.0. A bullish investor could look at DESP's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares:
Looking at the chart above, DESP's low point in its 52 week range is $21.91 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $22.36.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $21.91 per share. A bullish investor could look at DESP's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $21.91 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $22.36.
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The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $21.91 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $22.36. In trading on Wednesday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $21.91 per share. A bullish investor could look at DESP's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Wednesday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $21.91 per share. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $21.91 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $22.36. A bullish investor could look at DESP's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
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In trading on Wednesday, shares of Despegar.com Corp (Symbol: DESP) entered into oversold territory, hitting an RSI reading of 27.9, after changing hands as low as $21.91 per share. A bullish investor could look at DESP's 27.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of DESP shares: Looking at the chart above, DESP's low point in its 52 week range is $21.91 per share, with $36.5635 as the 52 week high point - that compares with a last trade of $22.36.
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2018-05-10 00:00:00 UTC
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Despegar.com Is Still Waiting to Take Off
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DESP
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https://www.nasdaq.com/articles/despegarcom-still-waiting-take-2018-05-10
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nan
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nan
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Sometimes even a solid earnings beat isn't enough to stir up interest in one of last year's forgotten debutantes. Argentina's Despegar.com (NYSE: DESP) posted better-than-expected financial results on Thursday morning, but its stock continues to meander near last year's IPO price.
The Latin America online travel specialist saw its revenue rise 22% to $148.6 million for its first quarter, fueled by a 21% uptick in gross bookings. Net income clocked in at $16.4 million, or $0.24 a share, up 35% compared to the prior year's results on a pro forma basis. It was a solid beat on both ends of the income statement, as analysts were targeting a profit of just $0.21 a share on $143.5 million in revenue.
Wall Street didn't care. The stock opened marginally higher following the healthy earnings report, only to find itself in negative territory a few hours into the trading day. Despegar.com seems destined to be the Rodney Dangerfield of online travel stocks. It gets no respect.
Lost in translation
Despegar.com has now posted better-than-expected earnings in each of its first three quarters as a public company, but that hasn't been enough to sway investors. The stock is barely trading above its mid-September IPO price of $26 .
The dot-com speedster seems to be doing things right. Most of its growth is coming from hotels, packages, and other travel products that generate higher revenue than the cutthroat air ticketing niche. Airlines don't have the same kind of commissions-disbursing flexibility as travel package providers. A 7% increase in air ticketing revenue was lifted higher by a 35% surge everywhere else for the first quarter.
There isn't a lot of Wall Street coverage on Despegar.com, but the analysts that have stepped up have been generally positive on the off-the-radar online travel play. KeyBanc's Brad Erickson called the company "undiscovered" in a bullish analyst note two months ago. He set a $40 price target at the time, arguing that Despegar.com is just starting to grow its margin-expanding travel package business. He also saw upside to consensus analyst estimates and the stock. He was right about upside to estimates, given this morning's beat, and we're definitely seeing the package business start to take off. However, the stock finds itself trading more than 10% lower than when Erickson issued that note, giving it that much more upside from current levels on the way to his $40 price goal.
Back in January, it was UBS analyst Eric Sheridan upgrading the stock . He was initially neutral on the stock at the time of its IPO. Sheridan's bullish thesis centers around the improving global economy and favorable internet-penetration trends in Argentina and Brazil, positions that remain largely intact. His price target of $36 also offers a healthy ceiling from where the stock is now trading.
Despegar.com hit the market lacking years of spectacular growth like some of the larger global portals. Revenue actually declined 3% in 2016. However, with what are now five consecutive quarters of top-line growth north of 20%, there should be some more air -- respect, if you will -- between the IPO runway and where the company is now.
10 stocks we like better than Despegar.com Corp.
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*Stock Advisor returns as of May 8, 2018
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Argentina's Despegar.com (NYSE: DESP) posted better-than-expected financial results on Thursday morning, but its stock continues to meander near last year's IPO price. There isn't a lot of Wall Street coverage on Despegar.com, but the analysts that have stepped up have been generally positive on the off-the-radar online travel play. Despegar.com seems destined to be the Rodney Dangerfield of online travel stocks.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Argentina's Despegar.com (NYSE: DESP) posted better-than-expected financial results on Thursday morning, but its stock continues to meander near last year's IPO price. Despegar.com seems destined to be the Rodney Dangerfield of online travel stocks.
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Argentina's Despegar.com (NYSE: DESP) posted better-than-expected financial results on Thursday morning, but its stock continues to meander near last year's IPO price. Despegar.com seems destined to be the Rodney Dangerfield of online travel stocks. Lost in translation Despegar.com has now posted better-than-expected earnings in each of its first three quarters as a public company, but that hasn't been enough to sway investors.
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* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! Argentina's Despegar.com (NYSE: DESP) posted better-than-expected financial results on Thursday morning, but its stock continues to meander near last year's IPO price. Despegar.com seems destined to be the Rodney Dangerfield of online travel stocks.
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e8ee2584-4a22-4c74-8283-3bb519704d34
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728682.0
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2018-04-13 00:00:00 UTC
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Despegar.com Corp. (DESP) Sees Hammer Chart Pattern: Time to Buy?
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DESP
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https://www.nasdaq.com/articles/despegar.com-corp.-desp-sees-hammer-chart-pattern%3A-time-to-buy-2018-04-13
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nan
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nan
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Despegar.com Corp.DESP has been struggling lately, but the selling pressure may be coming to an end soon. That is because DESP recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom.
What is a Hammer Chart Pattern?
A hammer chart pattern is a popular technical indicator that is used in candlestick charting. The hammer appears when a stock tumbles during the day, but then finds strength at some point in the session to close near or above its opening price. This forms a candlestick that resembles a hammer, and it can suggest that the market has found a low point in the stock, and that better days are ahead.
Other Factors
Plus, earnings estimates have been rising for this company, even despite the sluggish trading lately. In just the past 60 days alone 1 estimate has gone higher, compared to none lower, while the consensus estimate has also moved in the right direction.
Estimates have actually risen so much that the stock now has a Zacks Rank #2 (Buy) suggesting this relatively unloved stock could be due for a breakout soon. This will be especially true if DESP stock can build momentum from here and find a way to continue higher of off this encouraging trading development. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Despegar.com Corp. (DESP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar.com Corp.DESP has been struggling lately, but the selling pressure may be coming to an end soon. That is because DESP recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom. Other Factors Plus, earnings estimates have been rising for this company, even despite the sluggish trading lately.
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Click to get this free report Despegar.com Corp. (DESP): Free Stock Analysis Report To read this article on Zacks.com click here. Despegar.com Corp.DESP has been struggling lately, but the selling pressure may be coming to an end soon. That is because DESP recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom.
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Despegar.com Corp.DESP has been struggling lately, but the selling pressure may be coming to an end soon. That is because DESP recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom. Other Factors Plus, earnings estimates have been rising for this company, even despite the sluggish trading lately.
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Despegar.com Corp.DESP has been struggling lately, but the selling pressure may be coming to an end soon. That is because DESP recently saw a Hammer Chart Pattern which can signal that the stock is nearing a bottom. Other Factors Plus, earnings estimates have been rising for this company, even despite the sluggish trading lately.
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c43f8a52-7b92-4464-b316-712c952a1132
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728683.0
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2018-01-11 00:00:00 UTC
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Can Despegar.com Take Off in 2018?
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DESP
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https://www.nasdaq.com/articles/can-despegarcom-take-2018-2018-01-11
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nan
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nan
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One of last year's quietest IPOs may finally start making some noise this year. UBS analyst Eric Sheridan is upgrading shares of Despegar.com (NYSE: DESP) , boosting his rating from neutral to buy. He's sticking to his earlier price target of $36, a testament to a stock that has drifted lower instead of living up to its moniker that means "to take/lift off" in Spanish.
Despegar went public at $26 in mid-September. Latin America's leading online travel site opened at $29, approaching $35 a few weeks later before falling back to the mid-$20s in early December. It closed out the year at $27.48, a mere 6% return for its IPO investors. In a year full of red-hot and ice-cold debutantes, Despegar was surprisingly lukewarm. It's also surprising that Despegar has been a roundtrip to nowhere given the volatility last year of other online travel specialists.
Buckling those seatbelts
Sheridan is upgrading Despegar because he sees it benefiting from the improving economic climate and internet penetration trend in Argentina and Brazil. The stock has been drifting lower since peaking in October, giving the investment a more favorable risk profile at current levels. By sticking to his earlier $36 price target, he's implying that the fundamentals haven't veered off course since his initial neutral rating in mid-October when the stock was trading higher.
Investors have already seen one financial report out of Despegar since going public less than four months ago. It was a mixed performance. Revenue rose 24% to $131.5 million for the third quarter, as a 7% gain in air ticketing sales was propped up by a 42% pop in revenue related to bookings for hotels, packages, and other travel products. Net income went the other way, declining 22% to $11.2 million, or $0.19 a share. Analysts were holding out for a profit of $0.15 a share on $128.9 million, so it did beat expectations on both ends of the income statement.
The platform's popularity continues to gain traction. Gross bookings rose by 32% in its latest quarter, with the number of transactions rising 25%.
Latin America is going to have its socioeconomic and inflationary risks, and Despegar itself has had its ups and downs. Revenue dropped 3% in 2016, though it has been able to achieve three quarters of at least 20% top-line growth in 2017. We'll know how it closed out the year when it reports fourth-quarter results next month, but for now, it's encouraging to see one of the Wall Street pros who initiated coverage on the stock three months ago with an uninspiring neutral rating chime in as bullish ahead of the next financial update.
10 stocks we like better than Despegar.com, Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of January 2, 2018
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buckling those seatbelts Sheridan is upgrading Despegar because he sees it benefiting from the improving economic climate and internet penetration trend in Argentina and Brazil. UBS analyst Eric Sheridan is upgrading shares of Despegar.com (NYSE: DESP) , boosting his rating from neutral to buy. Despegar went public at $26 in mid-September.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. UBS analyst Eric Sheridan is upgrading shares of Despegar.com (NYSE: DESP) , boosting his rating from neutral to buy. Despegar went public at $26 in mid-September.
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UBS analyst Eric Sheridan is upgrading shares of Despegar.com (NYSE: DESP) , boosting his rating from neutral to buy. Despegar went public at $26 in mid-September. In a year full of red-hot and ice-cold debutantes, Despegar was surprisingly lukewarm.
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UBS analyst Eric Sheridan is upgrading shares of Despegar.com (NYSE: DESP) , boosting his rating from neutral to buy. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! Despegar went public at $26 in mid-September.
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8eec0837-2b6a-4130-8950-93fbe8066e17
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728684.0
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2017-11-30 00:00:00 UTC
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Chase Coleman Adds to Netflix, Amazon, Facebook Positions
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DESP
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https://www.nasdaq.com/articles/chase-coleman-adds-netflix-amazon-facebook-positions-2017-11-30
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nan
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nan
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Tiger Global Management LLC was founded by Chase Coleman ( Trades , Portfolio ) in 2001. He invested in the following stocks during the third quarter.
Coleman established a 30,204,172-share stake in Despegar.com Corp. ( DESP ). The trade was the guru's largest buy of the quarter and had an impact of 6.56% on the portfolio.
The online travel company has a market cap of $1.73 billion and an enterprise value of $1.65 billion.
GuruFocus gives the company a profitability and growth rating of 2 out of 10. The return on assets (ROA) of 14.44% and return on capital (ROC) of 685.32% are underperforming 100% of companies in the Global industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio is 6.65.
The company's largest shareholder among the gurus is Coleman with 43.71% of outstanding shares, followed by Stanley Druckenmiller (Trades, Portfolio) with 0.43% and Steven Cohen (Trades, Portfolio) with 0.3%.
The guru boosted his Netflix Inc. ( NFLX ) holding by 711.30%, impacting the portfolio by 3.3%.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 15.05% and ROA of 2.98% are outperforming 56% of companies in the Global Media - Diversified industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.36 is below the industry median of 1.47.
Frank Sands (Trades, Portfolio) is the company's largest guru shareholder with 1.65% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 1.22%, Andreas Halvorsen (Trades, Portfolio) with 0.91% and Coleman with 0.71%.
The guru added 23.72% to his Amazon.com Inc. ( AMZN ) position, expanding the portfolio by 1.92%.
GuruFocus gives the company a profitability and growth rating of 7 out of 10. While the ROE of 9.03% is outperforming the sector, the ROA of 2.20% is underperforming 51% of companies in the Global Specialty Retail industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.98 is below the industry median of 0.99.
With 0.38% of outstanding shares, Sands is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.36% and Coleman with 0.32%.
The investor increased his stake in Facebook Inc. ( FB ) by 2 40.30%, expanding the portfolio by 1.48%.
GuruFocus gives the company a profitability and growth rating of 9 out of 10. The ROE of 24.29% and ROA of 22% are outperforming 83% of the companies in the Global Internet Content and Information industry. Financial strength has a rating of 9 out of 10 with no debts.
The company's largest shareholder among the gurus is Sands with 0.48% of outstanding shares, followed by Segalas with 0.28%, Steve Mandel (Trades, Portfolio) with 0.17% and Halvorsen with 0.15%.
Coleman increased his position in JD.com Inc. ( JD ) by 12.32%. The transaction had an impact of 1.39% on the portfolio.
GuruFocus gives the company a profitability and growth rating of 4 out of 10. The ROE of -2.17% and ROA of -0.54% are underperforming 73% of the companies in the Global Internet Content and Information industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.35 is below the industry median of 13.55.
Dodge & Cox is another notable guru shareholder with 2.08% of outstanding shares, followed by Fisher with 0.7%, John Griffin (Trades, Portfolio) with 0.36%, Ruane Cunniff (Trades, Portfolio) with 0.28% and Halvorsen with 0.25%.
The guru bought 7,690,091 shares of Redfin Corp. (RDFN). The transaction had an impact of 1.31% on the portfolio.
GuruFocus gives the company a profitability and growth rating of 2 out of 10. The ROA of -13.82% and ROC of -111.49% are underperforming 97% of companies in the Global Real Estate Services industry. Financial strength has a rating of 9 out of 10. The cash-debt ratio of 303.11 is above the industry median of 0.35.
Another notable shareholder among the gurus is Ron Baron (Trades, Portfolio) with 0.04% of the company's outstanding shares.
Coleman purchased 1,222,000 shares of Autodesk Inc. (ADSK), expanding the portfolio by 0.93%.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of -74.67% and ROA of -12.57% are underperforming 91% of companies in the Global Software - Application industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 1.08 is below the industry median 6.56.
Halvorsen is the company's largest guru shareholder with 1.11% of outstanding shares, followed by Coleman with 0.56%, Jim Simons (Trades, Portfolio) with 0.4%, Cohen with 0.32% and Fisher with 0.1%.
The investor established a 910,000-share stake in Weibo Corp. (WB), giving it 0.61% portfolio space.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of 31.35% and ROA of 21.98% are outperforming 85% of companies in the Global Internet Content and Information industry. Financial strength has a rating of 8 out of 10 with no debt.
Another notable guru shareholder is Value Partners (Trades, Portfolio) with 0.42% of outstanding shares, followed by Simons with 0.16%, Jeremy Grantham (Trades, Portfolio) with 0.05% and Pioneer Investments (Trades, Portfolio) with 0.04%.
Disclosure: I do not own any stocks mentioned in this article.
Premium Members
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Coleman established a 30,204,172-share stake in Despegar.com Corp. ( DESP ). With 0.38% of outstanding shares, Sands is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.36% and Coleman with 0.32%. The company's largest shareholder among the gurus is Sands with 0.48% of outstanding shares, followed by Segalas with 0.28%, Steve Mandel (Trades, Portfolio) with 0.17% and Halvorsen with 0.15%.
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Coleman established a 30,204,172-share stake in Despegar.com Corp. ( DESP ). Frank Sands (Trades, Portfolio) is the company's largest guru shareholder with 1.65% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 1.22%, Andreas Halvorsen (Trades, Portfolio) with 0.91% and Coleman with 0.71%. With 0.38% of outstanding shares, Sands is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.36% and Coleman with 0.32%.
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Coleman established a 30,204,172-share stake in Despegar.com Corp. ( DESP ). The company's largest shareholder among the gurus is Coleman with 43.71% of outstanding shares, followed by Stanley Druckenmiller (Trades, Portfolio) with 0.43% and Steven Cohen (Trades, Portfolio) with 0.3%. Frank Sands (Trades, Portfolio) is the company's largest guru shareholder with 1.65% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 1.22%, Andreas Halvorsen (Trades, Portfolio) with 0.91% and Coleman with 0.71%.
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Coleman established a 30,204,172-share stake in Despegar.com Corp. ( DESP ). The trade was the guru's largest buy of the quarter and had an impact of 6.56% on the portfolio. With 0.38% of outstanding shares, Sands is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.36% and Coleman with 0.32%.
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728685.0
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2017-11-30 00:00:00 UTC
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Julian Robertson and Chase Coleman: Sometimes Ferocious Tigers
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DESP
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https://www.nasdaq.com/articles/julian-robertson-and-chase-coleman-sometimes-ferocious-tigers-2017-11-30
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nan
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nan
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For a decade and a half, Julian Robertson ( Trades , Portfolio ) was the "Wizard of Wall Street," but that all came undone when he failed to find a way to deal with the tech bubble. He shut down his funds in 2000, and began investing his remaining capital with many of the 40 "cubs" who had worked for him.
Chase Coleman (Trades, Portfolio) was one of those cubs, but he has embraced tech stocks since beginning his own firm that same year. So far, that has worked out well, but will it last?
Who are Robertson and Coleman?
Robertson, born in 1932, started one of the first hedge funds, Tiger Management Corp., in 1980. His firm started with $8 million and had grown to more than $23 billion in the mid-1990s. However, results in the late 1990s were poor, so investors pulled much of their capital; Robertson closed the doors to outside investors in 2000, and has since run it as a family office.
Coleman, born in 1975, began working for Robertson and Tiger Management in 1997. When the fund closed three years later, Robertson assigned Coleman some $25 million to manage. Coleman then created Tiger Global Management. He and the firm won acclaim for investing in Facebook (FB) when it was a startup, and he went on to sell his stake for an estimated $1 billion in 2013.
Robertson now invests his personal fortune in other hedge funds, including many established by his former employees. Business Insider reports Robertson is the "father" to more than 40 Tiger cubs (including Coleman).
Both gurus have shown an ability to generate outsized returns, subsequently attracting investment capital at an exponential rate. In Robertson's case, he could not maintain his gains, but did become a highly-regarded voice by mentoring so many young hedge fund founders and managers. As for Coleman, will he continue to hold his gains or will they slip away, as they did with Robertson?
What is Tiger Global Management?
The firm describes itself as an investment advisor in its Form ADV Part 2A filing.
It operates a hedge fund, a long opportunities fund and private equity funds. They are designed for sophisticated and institutional investors. As of Sept. 30, it held $23.6 billion of client assets under management (according to its Form ADV).
Robertson is listed as one of the board members and as senior member of the advisory board for Tiger Infrastructure Partners. A crunchbase.com profile shows two partners (in addition to Coleman): Scott Shleifer and Lee Fixel. The Wall Street Journal reports key investment manager Feroz Dewan resigned in 2015 to start his own firm. Dewan, who had been with Tiger 12 years, had run a $6 billion fund and co-managed the long-only fund.
Strategies and processes
Robertson is described as a macro trader, one who kept up on global trends but mostly rejected fundamental analysis. He is quoted as being focused on a "smart idea, grounded on exhaustive research, followed by a big bet." Nathan Reiff, writing for Investopedia, says Robertson's philosophy was called highly personal and difficult for average investors to follow. He adds that perhaps a lack of clarity and "hard-and-fast" rules may have contributed to Robertson's downfall.
The biggest drag on his late 1990s performance was a decision to avoid tech stocks; clients disagreed, and assets dropped from $23 billion to $6 billion by 2000.
Ironically, Coleman did not share Robertson's aversion to tech stocks. An Institutional Investor article leads off this way, "No hedge fund firm is as equally committed to public and private technology investments as Charles ("Chase") Coleman III's Tiger Global Management."
According to the Form ADV Part 2A, Coleman's firm uses "a variety of methods and strategies" in its objective of generating superior long-term, risk-adjusted capital gains. It divides its efforts into two categories:
Public Equity Investments: Starts with fundamentals to find long and short opportunities across all sectors and geographic regions. Candidates that make it through this initial screen go through an intensive due diligence process, one that involves internal and external research, as well as yet more fundamental analysis. In addition, staff members devote a "significant" amount of time modeling and performing valuation analyses on potential candidates as well as existing holdings.
Private Equity Investments: The same starting procedures as above, but in this category they like to invest in sectors that have strong, long-term secular growth fundamentals. Again, there is intensive due diligence through fundamental analysis and market research. Staff try to develop a deep understanding of local markets, business models and secular themes.
The Institutional Investor article says the goal of the public fund is to purchase "well-positioned" companies that have low multiples of future free cash flow. On the shorting side, it looks for "poorly-positioned" companies that have high multiples of future free cash flow.
On the private side, it is said to look for companies with sustainable moats that can be purchased at favorable multiples of expected future cash flow.
Underlining the dominance of technology is this Institutional Investor reference, "...since 2003, Tiger Global has invested 90 percent of the capital raised in its nine private funds in Internet, software and fintech companies." More specifically, Coleman believes the most powerful secular theme at this time is the development of "cheaper, faster and more powerful mobile devices."
Robertson seems to have run aground because he did not like the tech bubble of the 1990s, but also failed to profit from its bursting, as many other gurus did. That and a combination of what sounds like questionable management practices and an unsuitable temperament for working with teams. Coleman, on the other hand, has done very well by embracing the tech sector, and no doubt adapting his tactics as it shifts one way and another.
Holdings
This sectoral profile shows consumer cyclicals and technology topping the list at the end of the third quarter:
The Priceline Group Inc. ( PCLN ): 12.93%
JD.com Inc. ( JD ): 12.72%
Amazon.com Inc. ( AMZN ): 10.03%
Apollo Global Management LLC Class A ( APO ): 6.95%
Despegar.com Corp. ( DESP ): 6.56%
TransDigm Group Inc. (TDG): 5.65%
Alibaba Group Holding Ltd. ADR (BABA): 5.32%
Microsoft Corp. (MSFT): 5.30%
Netflix Inc. (NFLX): 3.76%
Domino's Pizza Inc. (DPZ): 3.14%
Reports of Coleman and Tiger Global being heavily biased toward technology were certainly true at the end of September, with many powerful and well-known names in the top 10.
Performance
As with hedge funds generally, there are no routine reports on performance by Robertson and Coleman; instead, we work with fragments gathered here and there.
We have already touched on his slippage leading up to the dot-com crash, but during the 1980s and first half of the 90s, Robertson was known as the "Wizard of Wall Street." The compounded rate of return during those glory years is reported by Investopedia as averaging 32% per year. When he reached $23 billion in assets under management, he was owner of the largest hedge fund in the world for several years.
Investopedia also reports Coleman's strategies remained successful (through to the article's March 2016 publication date), and his hedge fund has been one of the best in the past several decades. It adds he had an average annualized return of more than 40% from 2001 through 2007, slumped in 2008 and 2009, then went on to 45% in 2011 and 23% in 2012.
According to TipRanks, Coleman's portfolio gained 92.3% between June 2013 and Nov. 29, and his average annual return over the past three years was 16.31%. While those seem like good numbers, they are reasonable but not outstanding in context, as this chart from TipRanks shows:
Robertson really did earn the "Wizard of Wall Street" nickname over the first 15 years of his firm's history. Coleman has managed his first 15 years well, but not so spectacularly as Robertson. Regardless, Coleman continues to operate a viable business.
Conclusion
Robertson was undoubtedly a good teacher and Coleman was undoubtedly a good student. Between the two of them, they have almost 40 years of above-average returns.
Still, as the chart above shows, Coleman is doing almost as well as the S&P 500. And perhaps that is not good enough for some of the professional investors who are Coleman's clients--why go through all the trouble and expense of working with a hedge fund when it is not beating the benchmark?
Perhaps that reference to a "viable" business I made is a bit premature. Given the huge gains made by some tech stocks in the past decade, why are his returns not higher?
Disclosure: I do not own shares in any of the companies listed in this article, nor to I expect to buy any in the next 72 hours.
Premium Members
This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Holdings This sectoral profile shows consumer cyclicals and technology topping the list at the end of the third quarter: The Priceline Group Inc. ( PCLN ): 12.93% JD.com Inc. ( JD ): 12.72% Amazon.com Inc. ( AMZN ): 10.03% Apollo Global Management LLC Class A ( APO ): 6.95% Despegar.com Corp. ( DESP ): 6.56% TransDigm Group Inc. (TDG): 5.65% Alibaba Group Holding Ltd. ADR (BABA): 5.32% Microsoft Corp. (MSFT): 5.30% Netflix Inc. (NFLX): 3.76% Domino's Pizza Inc. (DPZ): 3.14% Reports of Coleman and Tiger Global being heavily biased toward technology were certainly true at the end of September, with many powerful and well-known names in the top 10. An Institutional Investor article leads off this way, "No hedge fund firm is as equally committed to public and private technology investments as Charles ("Chase") Coleman III's Tiger Global Management." Underlining the dominance of technology is this Institutional Investor reference, "...since 2003, Tiger Global has invested 90 percent of the capital raised in its nine private funds in Internet, software and fintech companies."
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Holdings This sectoral profile shows consumer cyclicals and technology topping the list at the end of the third quarter: The Priceline Group Inc. ( PCLN ): 12.93% JD.com Inc. ( JD ): 12.72% Amazon.com Inc. ( AMZN ): 10.03% Apollo Global Management LLC Class A ( APO ): 6.95% Despegar.com Corp. ( DESP ): 6.56% TransDigm Group Inc. (TDG): 5.65% Alibaba Group Holding Ltd. ADR (BABA): 5.32% Microsoft Corp. (MSFT): 5.30% Netflix Inc. (NFLX): 3.76% Domino's Pizza Inc. (DPZ): 3.14% Reports of Coleman and Tiger Global being heavily biased toward technology were certainly true at the end of September, with many powerful and well-known names in the top 10. It operates a hedge fund, a long opportunities fund and private equity funds. An Institutional Investor article leads off this way, "No hedge fund firm is as equally committed to public and private technology investments as Charles ("Chase") Coleman III's Tiger Global Management."
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Holdings This sectoral profile shows consumer cyclicals and technology topping the list at the end of the third quarter: The Priceline Group Inc. ( PCLN ): 12.93% JD.com Inc. ( JD ): 12.72% Amazon.com Inc. ( AMZN ): 10.03% Apollo Global Management LLC Class A ( APO ): 6.95% Despegar.com Corp. ( DESP ): 6.56% TransDigm Group Inc. (TDG): 5.65% Alibaba Group Holding Ltd. ADR (BABA): 5.32% Microsoft Corp. (MSFT): 5.30% Netflix Inc. (NFLX): 3.76% Domino's Pizza Inc. (DPZ): 3.14% Reports of Coleman and Tiger Global being heavily biased toward technology were certainly true at the end of September, with many powerful and well-known names in the top 10. When the fund closed three years later, Robertson assigned Coleman some $25 million to manage. An Institutional Investor article leads off this way, "No hedge fund firm is as equally committed to public and private technology investments as Charles ("Chase") Coleman III's Tiger Global Management."
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Holdings This sectoral profile shows consumer cyclicals and technology topping the list at the end of the third quarter: The Priceline Group Inc. ( PCLN ): 12.93% JD.com Inc. ( JD ): 12.72% Amazon.com Inc. ( AMZN ): 10.03% Apollo Global Management LLC Class A ( APO ): 6.95% Despegar.com Corp. ( DESP ): 6.56% TransDigm Group Inc. (TDG): 5.65% Alibaba Group Holding Ltd. ADR (BABA): 5.32% Microsoft Corp. (MSFT): 5.30% Netflix Inc. (NFLX): 3.76% Domino's Pizza Inc. (DPZ): 3.14% Reports of Coleman and Tiger Global being heavily biased toward technology were certainly true at the end of September, with many powerful and well-known names in the top 10. Who are Robertson and Coleman? Robertson, born in 1932, started one of the first hedge funds, Tiger Management Corp., in 1980.
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2017-11-17 00:00:00 UTC
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Despegar.com Is Avoiding Trivago's Rookie Mistake
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DESP
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https://www.nasdaq.com/articles/despegarcom-avoiding-trivagos-rookie-mistake-2017-11-17
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The skies looked choppy as Despegar.com (NYSE: DESP) was getting ready to take off with its first quarterly report as a public company. The leading Latin American online travel site still managed to lift off, posting better-than-expected financial results on Thursday afternoon.
Revenue clocked in at $131.5 million for Despegar's third quarter, 24% ahead of last year as a 42% surge in revenue related to bookings for hotels, packages, and other travel products helped offset a modest 7% uptick in air ticketing sales. Analysts were holding out for $128.9 million. Net income moved lower -- sliding 22% to $11.2 million, or $0.19 a share -- but Wall Street was targeting a profit of only $0.15 a share. The market's reaction to the report was lukewarm. The shares opened slightly higher on Friday following the report, only to drift into slightly negative territory within minutes of the new trading day.
You never forget your first flight
Despegar (which means "to take/lift off" in Spanish) went public at $26 in mid-September, a turbulent time for the industry. Most of the online travel agencies and specialists have corrected sharply in recent months. The last major operator to go public is Trivago (NASDAQ: TRVG) , and it has been a disaster . Trivago is now trading in the single digits, having plummeted nearly 70% since its summertime peak.
However, while Germany's Trivago went public with the tailwind of monster growth in 2016 -- revenue soaring 53%, only to decelerate sharply as 2017 plays out -- Despegar's trajectory has been quite different. Its revenue declined 3% last year, only to rise by more than 20% in each of this year's first three fiscal periods. Despegar's welcome ascent in 2017 comes just as Trivago, though expecting revenue to grow 2% to 15% in the current quarter, is warning that it will likely not grow at all through the first half of next year.
Wall Street was understandably nervous following Despegar's late-summer debut. A few weeks later, many of the largest underwriters behind the September offering -- UBS, Morgan Stanley, and Citi -- initiated coverage of the stock with neutral stock ratings. Sure, the stock had bubbled up to the low $30s. The underwriters had handed over the stock four weeks earlier at $26. It was still a chorus of ho-hum at a time when online travel sites in general were descending out of market favor.
Despegar didn't offer guidance for the fourth quarter and beyond in its Q3 earnings release, but it's clearly in a good place. Transactions rose 25% in the third quarter, with gross bookings up by an even better 32%. Keeping an eye on margins and cost controls will be essential in bringing its healthy top-line growth to the bottom line in the coming quarters, but it has lived up to the IPO hype in its first quarter as a public company.
10 stocks we like better than Despegar.com, Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 6, 2017
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool recommends Trivago. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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You never forget your first flight Despegar (which means "to take/lift off" in Spanish) went public at $26 in mid-September, a turbulent time for the industry. However, while Germany's Trivago went public with the tailwind of monster growth in 2016 -- revenue soaring 53%, only to decelerate sharply as 2017 plays out -- Despegar's trajectory has been quite different. The skies looked choppy as Despegar.com (NYSE: DESP) was getting ready to take off with its first quarterly report as a public company.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The skies looked choppy as Despegar.com (NYSE: DESP) was getting ready to take off with its first quarterly report as a public company. Revenue clocked in at $131.5 million for Despegar's third quarter, 24% ahead of last year as a 42% surge in revenue related to bookings for hotels, packages, and other travel products helped offset a modest 7% uptick in air ticketing sales.
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Revenue clocked in at $131.5 million for Despegar's third quarter, 24% ahead of last year as a 42% surge in revenue related to bookings for hotels, packages, and other travel products helped offset a modest 7% uptick in air ticketing sales. Despegar's welcome ascent in 2017 comes just as Trivago, though expecting revenue to grow 2% to 15% in the current quarter, is warning that it will likely not grow at all through the first half of next year. The skies looked choppy as Despegar.com (NYSE: DESP) was getting ready to take off with its first quarterly report as a public company.
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* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! The skies looked choppy as Despegar.com (NYSE: DESP) was getting ready to take off with its first quarterly report as a public company. Revenue clocked in at $131.5 million for Despegar's third quarter, 24% ahead of last year as a 42% surge in revenue related to bookings for hotels, packages, and other travel products helped offset a modest 7% uptick in air ticketing sales.
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2017-11-16 00:00:00 UTC
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Chase Coleman Buys Despegar.com Corp, Netflix Inc, Amazon. ...
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DESP
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https://www.nasdaq.com/articles/chase-coleman-buys-despegarcom-corp-netflix-inc-amazon-2017-11-16
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Chase Coleman
New Purchases: DESP , RDFN , ADSK , WB, NOW, SINA, ROKU, RYB,
Added Positions:NFLX, AMZN, FB, JD, FLT, FCAU, DPZ, QSR, APO, BABA,
Reduced Positions:TDG, TDOC, VXX, ETSY,
Sold Out:AMT, GOOGL, GOOG, ONDK,
For the details of Chase Coleman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Chase+Coleman
These are the top 5 holdings of Chase Coleman
The Priceline Group Inc ( PCLN ) - 1,041,006 shares, 12.93% of the total portfolio.
JD.com Inc ( JD ) - 49,100,000 shares, 12.72% of the total portfolio. Shares added by 12.32%
Amazon.com Inc ( AMZN ) - 1,537,700 shares, 10.03% of the total portfolio. Shares added by 23.72%
Apollo Global Management LLC ( APO ) - 34,049,807 shares, 6.95% of the total portfolio. Shares added by 3.54%
Despegar.com Corp ( DESP ) - 30,204,172 shares, 6.56% of the total portfolio. New Position
New Purchase: Despegar.com Corp ( DESP )
Chase Coleman initiated holdings in Despegar.com Corp. The purchase prices were between $30.84 and $32.22, with an estimated average price of $31.84. The stock is now traded at around $29.16. The impact to the portfolio due to this purchase was 6.56%. The holdings were 30,204,172 shares as of 2017-09-30.
New Purchase: Redfin Corp (RDFN)
Chase Coleman initiated holdings in Redfin Corp. The purchase prices were between $21.7 and $31.06, with an estimated average price of $25.76. The stock is now traded at around $21.05. The impact to the portfolio due to this purchase was 1.31%. The holdings were 7,690,091 shares as of 2017-09-30.
New Purchase: Autodesk Inc (ADSK)
Chase Coleman initiated holdings in Autodesk Inc. The purchase prices were between $99.36 and $116.48, with an estimated average price of $110.2. The stock is now traded at around $127.00. The impact to the portfolio due to this purchase was 0.93%. The holdings were 1,222,000 shares as of 2017-09-30.
New Purchase: Weibo Corp (WB)
Chase Coleman initiated holdings in Weibo Corp. The purchase prices were between $68.29 and $106.98, with an estimated average price of $87.62. The stock is now traded at around $117.72. The impact to the portfolio due to this purchase was 0.61%. The holdings were 910,000 shares as of 2017-09-30.
New Purchase: ServiceNow Inc (NOW)
Chase Coleman initiated holdings in ServiceNow Inc. The purchase prices were between $103.58 and $117.78, with an estimated average price of $110.97. The stock is now traded at around $125.72. The impact to the portfolio due to this purchase was 0.42%. The holdings were 531,301 shares as of 2017-09-30.
New Purchase: SINA Corp (SINA)
Chase Coleman initiated holdings in SINA Corp. The purchase prices were between $85.14 and $117.42, with an estimated average price of $100.6. The stock is now traded at around $107.51. The impact to the portfolio due to this purchase was 0.41%. The holdings were 529,107 shares as of 2017-09-30.
Added: Netflix Inc (NFLX)
Chase Coleman added to the holdings in Netflix Inc by 711.30%. The purchase prices were between $146.17 and $189.08, with an estimated average price of $173.84. The stock is now traded at around $195.51. The impact to the portfolio due to this purchase was 3.3%. The holdings were 3,053,747 shares as of 2017-09-30.
Added: Amazon.com Inc ( AMZN )
Chase Coleman added to the holdings in Amazon.com Inc by 23.72%. The purchase prices were between $938.6 and $1052.8, with an estimated average price of $981.92. The stock is now traded at around $1137.29. The impact to the portfolio due to this purchase was 1.92%. The holdings were 1,537,700 shares as of 2017-09-30.
Added: Facebook Inc (FB)
Chase Coleman added to the holdings in Facebook Inc by 240.30%. The purchase prices were between $148.43 and $173.51, with an estimated average price of $166.52. The stock is now traded at around $179.59. The impact to the portfolio due to this purchase was 1.48%. The holdings were 1,807,000 shares as of 2017-09-30.
Added: Fleetcor Technologies Inc (FLT)
Chase Coleman added to the holdings in Fleetcor Technologies Inc by 22.63%. The purchase prices were between $138.74 and $155.33, with an estimated average price of $146.64. The stock is now traded at around $178.65. The impact to the portfolio due to this purchase was 0.54%. The holdings were 2,794,524 shares as of 2017-09-30.
Added: Restaurant Brands International Inc (QSR)
Chase Coleman added to the holdings in Restaurant Brands International Inc by 35.04%. The purchase prices were between $59.25 and $65.58, with an estimated average price of $61.79. The stock is now traded at around $65.17. The impact to the portfolio due to this purchase was 0.28%. The holdings were 2,500,000 shares as of 2017-09-30.
Sold Out: American Tower Corp (AMT)
Chase Coleman sold out the holdings in American Tower Corp. The sale prices were between $130.93 and $148.05, with an estimated average price of $139.19.
Sold Out: Alphabet Inc (GOOGL)
Chase Coleman sold out the holdings in Alphabet Inc. The sale prices were between $919.46 and $998.31, with an estimated average price of $947.7.
Sold Out: Alphabet Inc (GOOG)
Chase Coleman sold out the holdings in Alphabet Inc. The sale prices were between $898.7 and $980.34, with an estimated average price of $930.63.
Sold Out: On Deck Capital Inc (ONDK)
Chase Coleman sold out the holdings in On Deck Capital Inc. The sale prices were between $4.1 and $5.01, with an estimated average price of $4.64.
Reduced: Teladoc Inc (TDOC)
Chase Coleman reduced to the holdings in Teladoc Inc by 56.19%. The sale prices were between $28.95 and $37, with an estimated average price of $32.8. The stock is now traded at around $28.70. The impact to the portfolio due to this sale was -0.69%. Chase Coleman still held 1,792,799 shares as of 2017-09-30.
Reduced: iPath S&P 500 VIX Short Term Futures TM ETN (VXX)
Chase Coleman reduced to the holdings in iPath S&P 500 VIX Short Term Futures TM ETN by 75%. The sale prices were between $11.01 and $49.05, with an estimated average price of $25.98. The stock is now traded at around $35.01. The impact to the portfolio due to this sale was -0.1%. Chase Coleman still held 304,136 shares as of 2017-09-30.
Warning! GuruFocus has detected 4 Warning Signs with NFLX. Click here to check it out.
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This article first appeared on GuruFocus .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chase Coleman New Purchases: DESP , RDFN , ADSK , WB, NOW, SINA, ROKU, RYB, Added Positions:NFLX, AMZN, FB, JD, FLT, FCAU, DPZ, QSR, APO, BABA, Reduced Positions:TDG, TDOC, VXX, ETSY, Sold Out:AMT, GOOGL, GOOG, ONDK, For the details of Chase Coleman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Chase+Coleman These are the top 5 holdings of Chase Coleman The Priceline Group Inc ( PCLN ) - 1,041,006 shares, 12.93% of the total portfolio. Shares added by 3.54% Despegar.com Corp ( DESP ) - 30,204,172 shares, 6.56% of the total portfolio. New Position New Purchase: Despegar.com Corp ( DESP ) Chase Coleman initiated holdings in Despegar.com Corp.
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Chase Coleman New Purchases: DESP , RDFN , ADSK , WB, NOW, SINA, ROKU, RYB, Added Positions:NFLX, AMZN, FB, JD, FLT, FCAU, DPZ, QSR, APO, BABA, Reduced Positions:TDG, TDOC, VXX, ETSY, Sold Out:AMT, GOOGL, GOOG, ONDK, For the details of Chase Coleman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Chase+Coleman These are the top 5 holdings of Chase Coleman The Priceline Group Inc ( PCLN ) - 1,041,006 shares, 12.93% of the total portfolio. Shares added by 3.54% Despegar.com Corp ( DESP ) - 30,204,172 shares, 6.56% of the total portfolio. New Position New Purchase: Despegar.com Corp ( DESP ) Chase Coleman initiated holdings in Despegar.com Corp.
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Chase Coleman New Purchases: DESP , RDFN , ADSK , WB, NOW, SINA, ROKU, RYB, Added Positions:NFLX, AMZN, FB, JD, FLT, FCAU, DPZ, QSR, APO, BABA, Reduced Positions:TDG, TDOC, VXX, ETSY, Sold Out:AMT, GOOGL, GOOG, ONDK, For the details of Chase Coleman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Chase+Coleman These are the top 5 holdings of Chase Coleman The Priceline Group Inc ( PCLN ) - 1,041,006 shares, 12.93% of the total portfolio. Shares added by 3.54% Despegar.com Corp ( DESP ) - 30,204,172 shares, 6.56% of the total portfolio. New Position New Purchase: Despegar.com Corp ( DESP ) Chase Coleman initiated holdings in Despegar.com Corp.
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Chase Coleman New Purchases: DESP , RDFN , ADSK , WB, NOW, SINA, ROKU, RYB, Added Positions:NFLX, AMZN, FB, JD, FLT, FCAU, DPZ, QSR, APO, BABA, Reduced Positions:TDG, TDOC, VXX, ETSY, Sold Out:AMT, GOOGL, GOOG, ONDK, For the details of Chase Coleman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Chase+Coleman These are the top 5 holdings of Chase Coleman The Priceline Group Inc ( PCLN ) - 1,041,006 shares, 12.93% of the total portfolio. Shares added by 3.54% Despegar.com Corp ( DESP ) - 30,204,172 shares, 6.56% of the total portfolio. New Position New Purchase: Despegar.com Corp ( DESP ) Chase Coleman initiated holdings in Despegar.com Corp.
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2017-11-14 00:00:00 UTC
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Despegar.com Has a Lot to Prove on Thursday
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DESP
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https://www.nasdaq.com/articles/despegarcom-has-lot-prove-thursday-2017-11-14
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If planning the perfect getaway is all about timing, it's fair to say that Despegar.com (NYSE: DESP) couldn't have gone public at a worse possible time. Market sentiment has soured on travel portals, weighing on the initial interest for the Latin American travel specialist.
Germany's Trivago (NASDAQ: TRVG) -- the last major online travel site to go public -- has shed 70% of its value since peaking four months ago, hitting yet another all-time low on Monday. Destination reviews hub TripAdvisor (NASDAQ: TRIP) has plummeted 72% since topping out three years ago. Even market darlings Priceline (NASDAQ: PCLN) and China's Ctrip.com (NASDAQ: CTRP) have proven mortal, currently fetching 17% and 22%, respectively, less than their summertime highs.
Despegar will get its first real test as a public company when it reports financial results on Thursday afternoon. Its third-quarter report will be the travel site operator's first earnings announcement since going public in September, and naturally there's a lot riding on the market's first impression.
Learning to fly
Despegar.com and its Brazilian sister site Decolar.com translate as "take off" in Spanish and Portuguese, respectively, but the stock itself hasn't had much of a chance to get off the ground. Despegar went public at $26 in mid-September, and it's trading only marginally above that now. Wall Street cooling on travel sites including Priceline and Ctrip hasn't helped, but the deep wounds at Trivago and TripAdvisor stem from model-specific lapses .
A lack of consistent growth at Despegar may also explain the market's lack of enthusiasm. It may be the leading online travel agency in Latin America, but Despegar saw its revenue decline slightly in 2016 with year-over-year dips in each of the year's four quarters. Growth has resumed in 2017. Revenue has risen 28% through the first half of the year. Analysts are targeting $128.9 million in Thursday's report, up 22% since the prior year's third-quarter showing. It would be top-line deceleration relative to its upticks through the first half of the year, but another welcome respite from last year's sluggishness. Wall Street's holding out for a profit of $0.15 a share, and it would be Despegar's sixth consecutive profitable quarter.
Despegar's uninspiring performance in 2016 was the handiwork of a drop in air ticketing revenue, something that isn't a surprise given how socioeconomic and inflationary factors have curbed international travel in some Latin American countries. Clearly, Despegar's results are improving with what should be its third straight quarter of double-digit revenue growth in Thursday's report.
The long-term prognosis is good. Euromonitor International sees the entire market for online travel bookings in Latin America growing from $29.7 billion in 2016 to $47.6 billion come 2020. Despegar should continue to be the main beneficiary of the trend, and ideally even gain market share along the way.
Investors will learn a lot about Despegar on Thursday. It will need to sustain its growth and profitability if it doesn't want to join Trivago as a broken IPO.
10 stocks we like better than Despegar.com, Corp.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Despegar.com, Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 6, 2017
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Priceline Group and TripAdvisor. The Motley Fool recommends Ctrip.com International and Trivago. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Despegar's uninspiring performance in 2016 was the handiwork of a drop in air ticketing revenue, something that isn't a surprise given how socioeconomic and inflationary factors have curbed international travel in some Latin American countries. If planning the perfect getaway is all about timing, it's fair to say that Despegar.com (NYSE: DESP) couldn't have gone public at a worse possible time. Despegar will get its first real test as a public company when it reports financial results on Thursday afternoon.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. If planning the perfect getaway is all about timing, it's fair to say that Despegar.com (NYSE: DESP) couldn't have gone public at a worse possible time. Despegar will get its first real test as a public company when it reports financial results on Thursday afternoon.
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It may be the leading online travel agency in Latin America, but Despegar saw its revenue decline slightly in 2016 with year-over-year dips in each of the year's four quarters. Despegar's uninspiring performance in 2016 was the handiwork of a drop in air ticketing revenue, something that isn't a surprise given how socioeconomic and inflationary factors have curbed international travel in some Latin American countries. Clearly, Despegar's results are improving with what should be its third straight quarter of double-digit revenue growth in Thursday's report.
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It may be the leading online travel agency in Latin America, but Despegar saw its revenue decline slightly in 2016 with year-over-year dips in each of the year's four quarters. Clearly, Despegar's results are improving with what should be its third straight quarter of double-digit revenue growth in Thursday's report. Investors will learn a lot about Despegar on Thursday.
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2017-10-22 00:00:00 UTC
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Can Ctrip and Despegar.com Bounce Back After Last Week's Drop?
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DESP
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https://www.nasdaq.com/articles/can-ctrip-and-despegarcom-bounce-back-after-last-weeks-drop-2017-10-22
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It was a rough week for a couple of international travel portals. Shares of China's Ctrip (NASDAQ: CTRP) and Argentina's Despegar.com (NYSE: DESP) declined 12% and 11%, respectively, last week, but the slides were not related.
Despegar moved lower despite a bullish analyst initiation to kick off the week. There was no material news out of Ctrip, but Brightwire is reporting that its chairman is considering charging for flight bookings, a move that would increase revenue but possibly at the expense of nudging more users to book directly with airlines.
Every takeoff has its landing
Despegar went public at $26 last month , and it had moved higher in three of its first four weeks on the market before last week's descent. Despegar's namesake site is the leading online travel agency in Latin America. It operates in Brazil as Decolar.com. Despegar and Decolar mean "take off" in Spanish and Portuguese, respectively.
Growth investors flocking to Despegar in search of the next dot-com darling may be disappointed to learn that revenue actually declined slightly in 2016, weighed down by a dip in air ticketing revenue. Things have turned around so far in 2017, with revenue rising 28% through the first half of the year. Despegar turned profitable last year, and it remains in the black so far this year.
Latin America will have its ups and downs, and the upside is clear. Euromonitor International sees the market for online travel bookings in Latin America growing from $29.7 billion last year to $47.6 billion come 2020. However, it's also fair to say that there will be inflationary, political, and economic hiccups in the region along the way.
Brad Erickson at KeyBanc initiated coverage on Despegar last week, setting a price target of $40. KeyBanc was one of the underwriters involved in taking Despegar public last week, so its bullishness isn't a surprise, but it's still nice to see a price goal well above September's IPO price. Erickson thinks the driver here will be growth in hotel and vacation package bookings.
Ctrip's no rookie. The Chinese speedster is working on its fourth consecutive year of revenue growth north of 30%. There are certainly risks in betting on China's travel industry , but it's been a good bet given the country's expanding middle class and booming economy.
Despegar and Ctrip took big hits last week, but the upside is substantial for both stocks. As long as the fundamentals continue to hold up the double-digit percentage declines last week have all the makings of a buying opportunity.
10 stocks we like better than Ctrip.com International
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Ctrip.com International wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of October 9, 2017
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool recommends Ctrip.com International. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of China's Ctrip (NASDAQ: CTRP) and Argentina's Despegar.com (NYSE: DESP) declined 12% and 11%, respectively, last week, but the slides were not related. Brad Erickson at KeyBanc initiated coverage on Despegar last week, setting a price target of $40. Despegar moved lower despite a bullish analyst initiation to kick off the week.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Shares of China's Ctrip (NASDAQ: CTRP) and Argentina's Despegar.com (NYSE: DESP) declined 12% and 11%, respectively, last week, but the slides were not related. Despegar moved lower despite a bullish analyst initiation to kick off the week.
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Every takeoff has its landing Despegar went public at $26 last month , and it had moved higher in three of its first four weeks on the market before last week's descent. Growth investors flocking to Despegar in search of the next dot-com darling may be disappointed to learn that revenue actually declined slightly in 2016, weighed down by a dip in air ticketing revenue. Despegar and Ctrip took big hits last week, but the upside is substantial for both stocks.
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Shares of China's Ctrip (NASDAQ: CTRP) and Argentina's Despegar.com (NYSE: DESP) declined 12% and 11%, respectively, last week, but the slides were not related. Despegar moved lower despite a bullish analyst initiation to kick off the week. Every takeoff has its landing Despegar went public at $26 last month , and it had moved higher in three of its first four weeks on the market before last week's descent.
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2017-09-08 00:00:00 UTC
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US IPO Weekly Recap: 6 new filings signal an active fall
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DESP
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https://www.nasdaq.com/articles/us-ipo-weekly-recap-6-new-filings-signal-active-fall-2017-09-08
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nan
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nan
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No IPOs priced during the shortened holiday week, but new filing activity remained strong: there have been 15 filings over the past two weeks, signaling a busy October. Six companies set terms this week, including Alibaba-backed logistics firm Best ( BSTI ), Latin American online travel agency Despegar.com ( DESP ), mortgage REIT Tremont Mortgage Trust ( TRMT ) and three micro-cap biotechs.
2017 IPO performance continued to rally; the YTD average total return is 20.5% from the IPO price, including 9.3% from aftermarket trading. Biotechs, in particular, fueled the recent run-up; this year's 20 biotech IPOs average a total return of 39.7% with aftermarket returns of 27.7%.
US IPO Pipeline Update
Six companies joined the IPO pipeline, expecting to raise a combined $1.1 billion. Argentine cement producer Loma Negra (LOMA) plans to raise an estimated $500 million; the company plans to sell shares in both Argentina and New York. Intel-backed data center operator Switch (SWCH) filed to raise an estimated $300 million. During the 1H17, the company posted 17% revenue growth ($181 million) as customer count rose 10% to 808 at period-end. Momentive (MPMH), a restructured global producer of specialty silicones, ceramics and quartz, plans to raise up to $100 million; it is currently listed on the OTC Markets under the ticker MPMQ and closed on Thursday with a market cap of $778 million. Rhythm Pharmaceuticals (RYTM), a clinical-stage biotech focused on peptide-based therapeutics to treat genetic obesity, plans to raise up to $115 million. The company successfully sold its last development drug, relamorelin, to Allergan in 2014 for $200 million after positive phase 2 results. Bioprosthetic device maker Hancock Jaffe Laboratories (HJL.RC) and alcohol-abuse biotech Adial Pharmaceuticals (ADIL) filed to raise $15 million and $14 million, respectively.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 25.6 % year-to-date, ahead of the S&P 500, which is up 9.9 % . Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Ferrari (RACE) and First Data (FDC). The Renaissance International IPO Index is up 24.0 % year-to-date, while the ACWX is up 18.7 % . Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay .
The article US IPO Weekly Recap: 6 new filings signal an active fall originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Six companies set terms this week, including Alibaba-backed logistics firm Best ( BSTI ), Latin American online travel agency Despegar.com ( DESP ), mortgage REIT Tremont Mortgage Trust ( TRMT ) and three micro-cap biotechs. Rhythm Pharmaceuticals (RYTM), a clinical-stage biotech focused on peptide-based therapeutics to treat genetic obesity, plans to raise up to $115 million. The company successfully sold its last development drug, relamorelin, to Allergan in 2014 for $200 million after positive phase 2 results.
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Six companies set terms this week, including Alibaba-backed logistics firm Best ( BSTI ), Latin American online travel agency Despegar.com ( DESP ), mortgage REIT Tremont Mortgage Trust ( TRMT ) and three micro-cap biotechs. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Ferrari (RACE) and First Data (FDC). Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay .
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Six companies set terms this week, including Alibaba-backed logistics firm Best ( BSTI ), Latin American online travel agency Despegar.com ( DESP ), mortgage REIT Tremont Mortgage Trust ( TRMT ) and three micro-cap biotechs. Renaissance Capital's IPO ETF ( IPO ) tracks the index, and top ETF holdings include Ferrari (RACE) and First Data (FDC). Renaissance Capital's International IPO ETF ( IPOS ) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay .
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Six companies set terms this week, including Alibaba-backed logistics firm Best ( BSTI ), Latin American online travel agency Despegar.com ( DESP ), mortgage REIT Tremont Mortgage Trust ( TRMT ) and three micro-cap biotechs. Argentine cement producer Loma Negra (LOMA) plans to raise an estimated $500 million; the company plans to sell shares in both Argentina and New York. Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security.
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2023-07-17 00:00:00 UTC
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Is WisdomTree Europe SmallCap Dividend ETF (DFE) a Strong ETF Right Now?
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DFE
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https://www.nasdaq.com/articles/is-wisdomtree-europe-smallcap-dividend-etf-dfe-a-strong-etf-right-now-7
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nan
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nan
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The WisdomTree Europe SmallCap Dividend ETF (DFE) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
DFE is managed by Wisdomtree, and this fund has amassed over $212.32 million, which makes it one of the average sized ETFs in the European Equity ETFs. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
The WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.58% for DFE, making it on par with most peer products in the space.
DFE's 12-month trailing dividend yield is 5.23%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Ssab Ab (SSABA) accounts for about 3.08% of the fund's total assets, followed by D/s Norden (DNORD) and Sydbank A/s (SYDB).
DFE's top 10 holdings account for about 13.99% of its total assets under management.
Performance and Risk
So far this year, DFE return is roughly 9.80%, and is up about 16.86% in the last one year (as of 07/17/2023). During this past 52-week period, the fund has traded between $44.46 and $61.12.
DFE has a beta of 1.14 and standard deviation of 20.80% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 297 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe SmallCap Dividend ETF is not a suitable option for investors seeking to outperform the European Equity ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
IShares MSCI Eurozone ETF (EZU) tracks MSCI EMU Index and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. IShares MSCI Eurozone ETF has $8.45 billion in assets, Vanguard FTSE Europe ETF has $19.32 billion. EZU has an expense ratio of 0.52% and VGK charges 0.11%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
iShares MSCI Eurozone ETF (EZU): ETF Research Reports
Vanguard FTSE Europe ETF (VGK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses. DFE has a beta of 1.14 and standard deviation of 20.80% for the trailing three-year period, which makes the fund a medium risk choice in the space. The WisdomTree Europe SmallCap Dividend ETF (DFE) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market.
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Click to get this free report WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports iShares MSCI Eurozone ETF (EZU): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree Europe SmallCap Dividend ETF (DFE) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market. Fund Sponsor & Index DFE is managed by Wisdomtree, and this fund has amassed over $212.32 million, which makes it one of the average sized ETFs in the European Equity ETFs.
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The WisdomTree Europe SmallCap Dividend ETF (DFE) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market. Click to get this free report WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports iShares MSCI Eurozone ETF (EZU): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports To read this article on Zacks.com click here. Fund Sponsor & Index DFE is managed by Wisdomtree, and this fund has amassed over $212.32 million, which makes it one of the average sized ETFs in the European Equity ETFs.
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The WisdomTree Europe SmallCap Dividend ETF (DFE) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses. DFE's top 10 holdings account for about 13.99% of its total assets under management.
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728692.0
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2023-05-16 00:00:00 UTC
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Is WisdomTree Europe SmallCap Dividend ETF (DFE) a Strong ETF Right Now?
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DFE
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https://www.nasdaq.com/articles/is-wisdomtree-europe-smallcap-dividend-etf-dfe-a-strong-etf-right-now-6
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nan
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nan
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $255.85 million, this makes it one of the average sized ETFs in the European Equity ETFs. DFE is managed by Wisdomtree. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
The WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 5.93%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Ssab Ab (SSABA) accounts for about 3.08% of the fund's total assets, followed by D/s Norden (DNORD) and Sydbank A/s (SYDB).
The top 10 holdings account for about 13.99% of total assets under management.
Performance and Risk
The ETF has gained about 9.70% so far this year and was up about 4.51% in the last one year (as of 05/16/2023). In the past 52-week period, it has traded between $44.46 and $65.38.
The fund has a beta of 1.15 and standard deviation of 21.54% for the trailing three-year period, which makes DFE a medium risk choice in this particular space. With about 297 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe SmallCap Dividend ETF is not a suitable option for investors seeking to outperform the European Equity ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
JPMorgan BetaBuilders Europe ETF (BBEU) tracks MORNINGSTAR DEV EUROPE TARGET MKT EXP ID and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. JPMorgan BetaBuilders Europe ETF has $9.56 billion in assets, Vanguard FTSE Europe ETF has $19.22 billion. BBEU has an expense ratio of 0.09% and VGK charges 0.11%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
Vanguard FTSE Europe ETF (VGK): ETF Research Reports
JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses. The fund has a beta of 1.15 and standard deviation of 21.54% for the trailing three-year period, which makes DFE a medium risk choice in this particular space. The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market.
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Click to get this free report WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. DFE is managed by Wisdomtree.
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. Click to get this free report WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports To read this article on Zacks.com click here. DFE is managed by Wisdomtree.
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. The fund has a beta of 1.15 and standard deviation of 21.54% for the trailing three-year period, which makes DFE a medium risk choice in this particular space. DFE is managed by Wisdomtree.
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56ba3346-4ce1-4606-a30e-c57224dfef54
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728693.0
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2023-03-15 00:00:00 UTC
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Is WisdomTree Europe SmallCap Dividend ETF (DFE) a Strong ETF Right Now?
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DFE
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https://www.nasdaq.com/articles/is-wisdomtree-europe-smallcap-dividend-etf-dfe-a-strong-etf-right-now-5
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nan
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nan
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Wisdomtree. It has amassed assets over $251.01 million, making it one of the average sized ETFs in the European Equity ETFs. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
The WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.58% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 5.46%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Ssab Ab (SSABA) accounts for about 2.54% of the fund's total assets, followed by D/s Norden (DNORD) and Sydbank A/s (SYDB).
Its top 10 holdings account for approximately 13.73% of DFE's total assets under management.
Performance and Risk
Year-to-date, the WisdomTree Europe SmallCap Dividend ETF has gained about 7% so far, and is down about -3.69% over the last 12 months (as of 03/15/2023). DFE has traded between $44.46 and $68.56 in this past 52-week period.
The fund has a beta of 1.15 and standard deviation of 24.97% for the trailing three-year period, which makes DFE a medium risk choice in this particular space. With about 298 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe SmallCap Dividend ETF is not a suitable option for investors seeking to outperform the European Equity ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
JPMorgan BetaBuilders Europe ETF (BBEU) tracks MORNINGSTAR DEV EUROPE TARGET MKT EXP ID and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. JPMorgan BetaBuilders Europe ETF has $8.96 billion in assets, Vanguard FTSE Europe ETF has $17.17 billion. BBEU has an expense ratio of 0.09% and VGK charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
Vanguard FTSE Europe ETF (VGK): ETF Research Reports
JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fund has a beta of 1.15 and standard deviation of 24.97% for the trailing three-year period, which makes DFE a medium risk choice in this particular space. The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
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Click to get this free report WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports To read this article on Zacks.com click here. The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. Click to get this free report WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Vanguard FTSE Europe ETF (VGK): ETF Research Reports JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports To read this article on Zacks.com click here. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. DFE seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses. Its top 10 holdings account for approximately 13.73% of DFE's total assets under management.
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2023-03-08 00:00:00 UTC
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The Zacks Analyst Blog Highlights ProShares S&P MidCap 400 Dividend Aristocrats, WisdomTree US Smallcap Quality Dividend Growth, First Trust SMID Cap Rising Dividend, WisdomTree Europe SmallCap Dividend and Invesco KBW High Dividend Yield
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DFE
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-proshares-sp-midcap-400-dividend-aristocrats-wisdomtree
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nan
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For Immediate Release
Chicago, IL – March 8, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL, WisdomTree US Smallcap Quality Dividend Growth Fund DGRS, First Trust SMID Cap Rising Dividend Achievers ETF SDVY, WisdomTree Europe SmallCap Dividend Fund DFE and Invesco KBW High Dividend Yield Financial ETF KBWD.
Here are highlights from Tuesday’s Analyst Blog:
Winning Dividend ETFs So Far in Q1
Dividend stocks have been beating the market for quite some months. The S&P 500 is up 5.4% this year and has lost about 6.5% past year. However, the highest gain from the U.S. dividend space came from WisdomTree US Smallcap Quality Dividend Growth Fund (up 11.2%), while the highest return offered by the space was 6% past year from ProShares S&P MidCap 400 Dividend Aristocrats ETF.
The year 2022 was all about the Russia-Ukraine war, red-hot inflation and rising rates. Although inflation started showing signs of cooling and the pace of central banks’ rate hikes slowed, the investing landscape for early 2023 has not changed much. We have seen a bear market rally this year, but occasional releases of upbeat economic data points amid still-high inflation triggered bets for further hawkish Fed actions.
Dividend investing has been in vogue amid huge volatility and uncertainty. This was especially true as dividend stocks and ETFs are major sources of consistent income for investors in any type of market though they do not offer dramatic price appreciation. These stocks tend to outperform in volatile markets and can reduce the volatility of a portfolio.
Both dividend aristocrats and high-dividend ETFs have gained strength so far this year. High-dividend ETFs have been gaining more than dividend aristocrats. Since rising rates have been prevalent, investors are interested in equities that have the potential to offer capital appreciation as well as decent current income. After all, dividends are one of the ways to ride out turbulent times.
Against this backdrop, below, we highlight a few dividend ETFs that are rising fast in prices to start 2023. These ETFs have beaten the broader market with ease.
ETFs in Focus
WisdomTree US Smallcap Quality Dividend Growth Fund – Up 11.2% YTD; Yields 2.61% Annually
The underlying WisdomTree U.S. SmallCap Quality Dividend Growth Index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying stocks with growth characteristics.
First Trust SMID Cap Rising Dividend Achievers ETF – Up 9.9% YTD; Yields 2.06% Annually
The underlying NASDAQ US Small Mid Cap Rising Dividend Achievers Index is composed of the securities of 100 small and mid-cap companies with a history of raising their dividends that exhibit the characteristics to continue to do so in the future. The fund charges 60 bps in fees.
WisdomTree Europe SmallCap Dividend Fund – Up 9.6% YTD; Yields 5.26% Annually
The underlying WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market. The fund charges 58 bps in fees.
Invesco KBW High Dividend Yield Financial ETF – Up 8.6% YTD; Yields 10.52% Annually
The underlying KBW Nasdaq Financial Sector Dividend Yield Index is a dividend-yield-weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. The fund’s expense ratio is 3.84% annually.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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>>Yes, I Want to Help Protect My Portfolio During the Recession
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports
Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ETFs recently featured in the blog include: ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL, WisdomTree US Smallcap Quality Dividend Growth Fund DGRS, First Trust SMID Cap Rising Dividend Achievers ETF SDVY, WisdomTree Europe SmallCap Dividend Fund DFE and Invesco KBW High Dividend Yield Financial ETF KBWD. Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. Although inflation started showing signs of cooling and the pace of central banks’ rate hikes slowed, the investing landscape for early 2023 has not changed much.
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ETFs recently featured in the blog include: ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL, WisdomTree US Smallcap Quality Dividend Growth Fund DGRS, First Trust SMID Cap Rising Dividend Achievers ETF SDVY, WisdomTree Europe SmallCap Dividend Fund DFE and Invesco KBW High Dividend Yield Financial ETF KBWD. Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. ETFs in Focus WisdomTree US Smallcap Quality Dividend Growth Fund – Up 11.2% YTD; Yields 2.61% Annually The underlying WisdomTree U.S. SmallCap Quality Dividend Growth Index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying stocks with growth characteristics.
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ETFs recently featured in the blog include: ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL, WisdomTree US Smallcap Quality Dividend Growth Fund DGRS, First Trust SMID Cap Rising Dividend Achievers ETF SDVY, WisdomTree Europe SmallCap Dividend Fund DFE and Invesco KBW High Dividend Yield Financial ETF KBWD. Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. ETFs in Focus WisdomTree US Smallcap Quality Dividend Growth Fund – Up 11.2% YTD; Yields 2.61% Annually The underlying WisdomTree U.S. SmallCap Quality Dividend Growth Index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying stocks with growth characteristics.
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ETFs recently featured in the blog include: ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL, WisdomTree US Smallcap Quality Dividend Growth Fund DGRS, First Trust SMID Cap Rising Dividend Achievers ETF SDVY, WisdomTree Europe SmallCap Dividend Fund DFE and Invesco KBW High Dividend Yield Financial ETF KBWD. Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. >>Yes, I Want to Help Protect My Portfolio During the Recession Want the latest recommendations from Zacks Investment Research?
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2023-03-07 00:00:00 UTC
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Winning Dividend ETFs So Far in First Quarter
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https://www.nasdaq.com/articles/winning-dividend-etfs-so-far-in-first-quarter
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Dividend stocks have been beating the market for quite some months. The S&P 500 is up 5.4% this year and has lost about 6.5% past year. However, the highest gain from the U.S. dividend space came from WisdomTree US Smallcap Quality Dividend Growth Fund DGRS (up 11.2%), while the highest return offered by the space was 6% past year from ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL.
The year 2022 was all about the Russia-Ukraine war, red-hot inflation and rising rates. Although inflation started showing signs of cooling and the pace of central banks’ rate hikes slowed, the investing landscape for early 2023 has not changed much. We have seen a bear market rally this year, but occasional releases of upbeat economic data points amid still-high inflation triggered bets for further hawkish Fed actions.
Dividend investing has been in vogue amid huge volatility and uncertainty. This was especially true as dividend stocks and ETFs are major sources of consistent income for investors in any type of market though they do not offer dramatic price appreciation. These stocks tend to outperform in volatile markets and can reduce the volatility of a portfolio.
Both dividend aristocrats and high-dividend ETFs have gained strength so far this year. High-dividend ETFs have been gaining more than dividend aristocrats. Since rising rates have been prevalent, investors are interested in equities that have the potential to offer capital appreciation as well as decent current income. After all, dividends are one of the ways to ride out turbulent times.
Against this backdrop, below, we highlight a few dividend ETFs that are rising fast in prices to start 2023. These ETFs have beaten the broader market with ease.
ETFs in Focus
WisdomTree US Smallcap Quality Dividend Growth Fund (DGRS) – Up 11.2% YTD; Yields 2.61% Annually
The underlying WisdomTree U.S. SmallCap Quality Dividend Growth Index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying stocks with growth characteristics.
First Trust SMID Cap Rising Dividend Achievers ETF SDVY – Up 9.9% YTD; Yields 2.06% Annually
The underlying NASDAQ US Small Mid Cap Rising Dividend Achievers Index is composed of the securities of 100 small and mid-cap companies with a history of raising their dividends that exhibit the characteristics to continue to do so in the future. The fund charges 60 bps in fees.
WisdomTree Europe SmallCap Dividend Fund DFE – Up 9.6% YTD; Yields 5.26% Annually
The underlying WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market. The fund charges 58 bps in fees.
WisdomTree U.S. SmallCap Dividend Fund DES – Up 8.8% YTD; Yields 2.63% Annually
The underlying WisdomTree U.S. SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small-capitalization segment of the U.S. dividend-paying market. The fund charges 38 bps in fees.
Invesco KBW High Dividend Yield Financial ETF KBWD – Up 8.6% YTD; Yields 10.52% Annually
The underlying KBW Nasdaq Financial Sector Dividend Yield Index is a dividend-yield-weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. The fund’s expense ratio is 3.84% annually.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports
WisdomTree U.S. SmallCap Dividend ETF (DES): ETF Research Reports
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports
Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports
First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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WisdomTree Europe SmallCap Dividend Fund DFE – Up 9.6% YTD; Yields 5.26% Annually The underlying WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market. Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree U.S. SmallCap Dividend ETF (DES): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. Although inflation started showing signs of cooling and the pace of central banks’ rate hikes slowed, the investing landscape for early 2023 has not changed much.
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WisdomTree Europe SmallCap Dividend Fund DFE – Up 9.6% YTD; Yields 5.26% Annually The underlying WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market. Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree U.S. SmallCap Dividend ETF (DES): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. ETFs in Focus WisdomTree US Smallcap Quality Dividend Growth Fund (DGRS) – Up 11.2% YTD; Yields 2.61% Annually The underlying WisdomTree U.S. SmallCap Quality Dividend Growth Index is a fundamentally weighted index that consists of the small-capitalization segment of dividend-paying stocks with growth characteristics.
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Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree U.S. SmallCap Dividend ETF (DES): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. WisdomTree Europe SmallCap Dividend Fund DFE – Up 9.6% YTD; Yields 5.26% Annually The underlying WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market. However, the highest gain from the U.S. dividend space came from WisdomTree US Smallcap Quality Dividend Growth Fund DGRS (up 11.2%), while the highest return offered by the space was 6% past year from ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL.
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Click to get this free report ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL): ETF Research Reports WisdomTree U.S. SmallCap Dividend ETF (DES): ETF Research Reports WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS): ETF Research Reports Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports First Trust SMID Cap Rising Dividend Achievers ETF (SDVY): ETF Research Reports To read this article on Zacks.com click here. WisdomTree Europe SmallCap Dividend Fund DFE – Up 9.6% YTD; Yields 5.26% Annually The underlying WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market. The year 2022 was all about the Russia-Ukraine war, red-hot inflation and rising rates.
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2023-03-06 00:00:00 UTC
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Diversify Risk Factors With Small Cap Strategies
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https://www.nasdaq.com/articles/diversify-risk-factors-with-small-cap-strategies
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Most investors know an asset class “performance quilt” when they see one – but they may not be as familiar with another powerful lens into understanding market risk, and risk factor diversification. A popular approach at WisdomTree Investments, risk factor diversification involves more than just simple diversification across types of investments, but across risk factors like value, growth, and quality – with small cap strategies one way to balance those factors in the weeks ahead.
Understanding risk factors in 2023 means looking back to 2022 when growth was thrown from its high perch as the Fed began its rate hike campaign. It was one of the “greatest factor rotations in history” according to WisdomTree’s chief investment officer for model portfolios, Scott Welch, in which the difference in performance between growth and value factors grew to one of the widest recorded dispersions between factors.
The challenge in 2023 is that the factors are all over the place – one week, the Fed has been tamed and inflation is in the rearview with a soft landing – or no landing at all – in the cards. In the next week, the Fed comes out with talons bared, and the market shifts back towards strategies to take cover for more rates – as many as three could be coming this year.
Despite the scramble to identify the true market zeitgeist among the various factors, investors can consider the folks over at WisdomTree are sticking to value and dividends given that factor rotations tend to last more than just a single year despite the volatility. Small-cap strategies with a value tilt may be worth checking out.
“Despite the narrowing of the gap between large- and small-cap valuations, small caps remain attractively valued on a comparative basis,” Welch wrote in a recent insight from the shop.
As such, investors wanting to lean on a strategy for the new factor regime of value and dividends with a strategy like the WisdomTree Europe SmallCap Dividend Fund (DFE) which tracks the WisdomTree Europe SmallCap Dividend Index for a fee of 58 basis points and invests in small-cap European stocks with a value tilt and dividend weighting methodology. DFE has returned 11% YTD and seen $50.6 million in one month's net inflows.
With other strategies tied to value and dividends such as AI-powered value funds like the WisdomTree U.S. AI Enhanced Value Fund (AIVL) and emerging markets dividends in the WisdomTree Emerging Markets High Dividend Fund (DEM), understanding the value of a risk factor view compared to standard asset class diversification can be a powerful tool in the weeks ahead.
For more news, information, and strategy, visit the Modern Alpha Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As such, investors wanting to lean on a strategy for the new factor regime of value and dividends with a strategy like the WisdomTree Europe SmallCap Dividend Fund (DFE) which tracks the WisdomTree Europe SmallCap Dividend Index for a fee of 58 basis points and invests in small-cap European stocks with a value tilt and dividend weighting methodology. DFE has returned 11% YTD and seen $50.6 million in one month's net inflows. Understanding risk factors in 2023 means looking back to 2022 when growth was thrown from its high perch as the Fed began its rate hike campaign.
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As such, investors wanting to lean on a strategy for the new factor regime of value and dividends with a strategy like the WisdomTree Europe SmallCap Dividend Fund (DFE) which tracks the WisdomTree Europe SmallCap Dividend Index for a fee of 58 basis points and invests in small-cap European stocks with a value tilt and dividend weighting methodology. DFE has returned 11% YTD and seen $50.6 million in one month's net inflows. A popular approach at WisdomTree Investments, risk factor diversification involves more than just simple diversification across types of investments, but across risk factors like value, growth, and quality – with small cap strategies one way to balance those factors in the weeks ahead.
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As such, investors wanting to lean on a strategy for the new factor regime of value and dividends with a strategy like the WisdomTree Europe SmallCap Dividend Fund (DFE) which tracks the WisdomTree Europe SmallCap Dividend Index for a fee of 58 basis points and invests in small-cap European stocks with a value tilt and dividend weighting methodology. DFE has returned 11% YTD and seen $50.6 million in one month's net inflows. A popular approach at WisdomTree Investments, risk factor diversification involves more than just simple diversification across types of investments, but across risk factors like value, growth, and quality – with small cap strategies one way to balance those factors in the weeks ahead.
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As such, investors wanting to lean on a strategy for the new factor regime of value and dividends with a strategy like the WisdomTree Europe SmallCap Dividend Fund (DFE) which tracks the WisdomTree Europe SmallCap Dividend Index for a fee of 58 basis points and invests in small-cap European stocks with a value tilt and dividend weighting methodology. DFE has returned 11% YTD and seen $50.6 million in one month's net inflows. A popular approach at WisdomTree Investments, risk factor diversification involves more than just simple diversification across types of investments, but across risk factors like value, growth, and quality – with small cap strategies one way to balance those factors in the weeks ahead.
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2023-02-06 00:00:00 UTC
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WisdomTree Distribution Exec Talks Advisors, Value, Dividends
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https://www.nasdaq.com/articles/wisdomtree-distribution-exec-talks-advisors-value-dividends
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Investors have a lot on their plate to start a complicated 2023, with conflicting narratives surrounding the Fed, growth, value, and a potential recession in the mix. Advisors and investors alike have much to consider and may want to consider how WisdomTree Investment's head of Americas distribution, Joe Grogan, is communicating with investors and positioning the firm’s strategies amid such uncertainty. VettaFi chatted with the WisdomTree distro leader just before the Exchange ETF conference.
[caption id="attachment_505678" align="alignleft" width="300"] Joe Grogan, WisdomTree Investment's Head of Americas Distribution[/caption]
WisdomTree has been focused on leveraging its value-oriented approach so far in 2023, a year that began with a resurgence in value investing following last year’s broad market selloff. Large value ETFs have seen $3.5 billion in YTD net inflows according to YCharts, the 7th most across all categories, with small value ETFs returning 10.9% in that time.
To Grogan, advisors should know that WisdomTree doesn’t just have a value tilt, but also that the firm is serious about screening for quality.
“It's important to us to let them know that you know the premise of what we do is really based around quality selection,” Grogan said. “Quality being a very big buzzword nowadays, it’s something that WisdomTree's roots are in. It's really how we select indexes, how we select our products, what we invest in, and typically just by the simple way in which we actually screen and invest, we identify the most quality-oriented organizations.”
Advisors have shared their desire for shelter from the storm with the firm, Grogan said while crediting his WisdomTree distro team, often leading to discussions about WisdomTree’s Floating Rate Treasury Fund (USFR). Tracking the Bloomberg U.S. Treasury Floating Rate Bond Index, the ETF charges 15 basis points and has added $1.6 billion over the last three months with the recent benefit of clipping around 4% in interest.
Other strategies that have been frequent topics from advisor outreach have included the firm’s WisdomTree U.S. Value Fund (WTV), which has outperformed its ETF Database Category Average and its Factset Segment Average over the last month with returns of 12.7% for a 12-basis point fee.
On top of value funds like WTV, European markets strategies like the WisdomTree Europe SmallCap Dividend Fund (DFE) have grown in popularity thanks to the breadth of dividend-paying firms available around the world. DFE itself received a $30 million buy Friday, he said.
WisdomTree rebalanced several of its dividend-yielding funds last month, meanwhile, which has resulted in adding several growthier names that hit the shop’s value screens.
“If you look at one of our real true value funds, WTV, which is our low-cost value fund we put out there, its top position right now is Meta (META),” the WisdomTree distro leader said. “So when you see Facebook in the top position in a value fund, it just shows you how far that has dropped and that fund right now is a top decile performer out of all value funds.”
Looking to help advisors, the firm has developed its Portfolio Advisor Growth Solutions service which is meant to help advisors with logistics, rebalancing, and more to help them design portfolios and focus on helping their clients plan, Grogan said.
“It's a solution that we offer and it's an end-to-end model solution for advisors that need to simplify, scale, and grow their business. We don't charge advisory fees on top of it, it's not all proprietary WisdomTree,” he said.
Looking ahead, the shop plans to continue to prioritize dividends, Grogan said, pointing to advice from Professor Jeremy Siegel, Senior Investment Strategy advisor at WisdomTree and Emeritus Professor of Finance at the Wharton School.
“Professor Siegel does still feel a little bullish about the market and where he says to be is to be in dividend performing securities… If the market comes down and you're in a complete growth stock, it doesn't pay a dividend, but its forward earnings are based on future interest rates, those are going to get hammered,” Grogan said.
“So why take that risk right now? Put a base in your portfolio into dividend-yielding securities, make sure it's high quality, have a nice component in cash or a cash-yield security like USFR, and you can almost wait it out and pick and play when you should enter back into the market in a slower pace,” he added.
For more news, information, and strategy, visit the Modern Alpha Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On top of value funds like WTV, European markets strategies like the WisdomTree Europe SmallCap Dividend Fund (DFE) have grown in popularity thanks to the breadth of dividend-paying firms available around the world. DFE itself received a $30 million buy Friday, he said. Investors have a lot on their plate to start a complicated 2023, with conflicting narratives surrounding the Fed, growth, value, and a potential recession in the mix.
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On top of value funds like WTV, European markets strategies like the WisdomTree Europe SmallCap Dividend Fund (DFE) have grown in popularity thanks to the breadth of dividend-paying firms available around the world. DFE itself received a $30 million buy Friday, he said. Advisors and investors alike have much to consider and may want to consider how WisdomTree Investment's head of Americas distribution, Joe Grogan, is communicating with investors and positioning the firm’s strategies amid such uncertainty.
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On top of value funds like WTV, European markets strategies like the WisdomTree Europe SmallCap Dividend Fund (DFE) have grown in popularity thanks to the breadth of dividend-paying firms available around the world. DFE itself received a $30 million buy Friday, he said. It's really how we select indexes, how we select our products, what we invest in, and typically just by the simple way in which we actually screen and invest, we identify the most quality-oriented organizations.” Advisors have shared their desire for shelter from the storm with the firm, Grogan said while crediting his WisdomTree distro team, often leading to discussions about WisdomTree’s Floating Rate Treasury Fund (USFR).
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On top of value funds like WTV, European markets strategies like the WisdomTree Europe SmallCap Dividend Fund (DFE) have grown in popularity thanks to the breadth of dividend-paying firms available around the world. DFE itself received a $30 million buy Friday, he said. Advisors and investors alike have much to consider and may want to consider how WisdomTree Investment's head of Americas distribution, Joe Grogan, is communicating with investors and positioning the firm’s strategies amid such uncertainty.
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2022-09-01 00:00:00 UTC
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Is WisdomTree Europe SmallCap Dividend ETF (DFE) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-wisdomtree-europe-smallcap-dividend-etf-dfe-a-strong-etf-right-now-3
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Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe SmallCap Dividend ETF (DFE) is a smart beta exchange traded fund launched on 06/16/2006.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
DFE is managed by Wisdomtree, and this fund has amassed over $211.24 million, which makes it one of the average sized ETFs in the European Equity ETFs. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index.
The WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.58%.
It has a 12-month trailing dividend yield of 5.44%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Postnl Nv (PNL) accounts for about 3.25% of total assets, followed by Banca Farmafactoring Spa (BFF) and Diversified Energy Co (DEC).
DFE's top 10 holdings account for about 16.6% of its total assets under management.
Performance and Risk
The ETF has lost about -26.70% so far this year and is down about -28.86% in the last one year (as of 09/01/2022). In the past 52-week period, it has traded between $52.25 and $79.11.
The ETF has a beta of 1.13 and standard deviation of 25.34% for the trailing three-year period, making it a medium risk choice in the space. With about 304 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe SmallCap Dividend ETF is a reasonable option for investors seeking to outperform the European Equity ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI Eurozone ETF (EZU) tracks MSCI EMU Index and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. IShares MSCI Eurozone ETF has $4.75 billion in assets, Vanguard FTSE Europe ETF has $14.63 billion. EZU has an expense ratio of 0.50% and VGK charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
iShares MSCI Eurozone ETF (EZU): ETF Research Reports
Vanguard FTSE Europe ETF (VGK): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe SmallCap Dividend ETF (DFE) is a smart beta exchange traded fund launched on 06/16/2006. Fund Sponsor & Index DFE is managed by Wisdomtree, and this fund has amassed over $211.24 million, which makes it one of the average sized ETFs in the European Equity ETFs. DFE's top 10 holdings account for about 16.6% of its total assets under management.
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Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe SmallCap Dividend ETF (DFE) is a smart beta exchange traded fund launched on 06/16/2006. WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Fund Sponsor & Index DFE is managed by Wisdomtree, and this fund has amassed over $211.24 million, which makes it one of the average sized ETFs in the European Equity ETFs.
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Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe SmallCap Dividend ETF (DFE) is a smart beta exchange traded fund launched on 06/16/2006. Fund Sponsor & Index DFE is managed by Wisdomtree, and this fund has amassed over $211.24 million, which makes it one of the average sized ETFs in the European Equity ETFs. DFE's top 10 holdings account for about 16.6% of its total assets under management.
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Designed to provide broad exposure to the European Equity ETFs category of the market, the WisdomTree Europe SmallCap Dividend ETF (DFE) is a smart beta exchange traded fund launched on 06/16/2006. WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Fund Sponsor & Index DFE is managed by Wisdomtree, and this fund has amassed over $211.24 million, which makes it one of the average sized ETFs in the European Equity ETFs.
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4a5d69df-18c4-4a4f-9f7d-0daab2506ef4
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728699.0
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2022-06-27 00:00:00 UTC
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Is WisdomTree Europe SmallCap Dividend ETF (DFE) a Strong ETF Right Now?
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DFE
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https://www.nasdaq.com/articles/is-wisdomtree-europe-smallcap-dividend-etf-dfe-a-strong-etf-right-now-2
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nan
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nan
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The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, DFE has amassed assets over $238.27 million, making it one of the average sized ETFs in the European Equity ETFs. This particular fund seeks to match the performance of the WisdomTree Europe SmallCap Dividend Index before fees and expenses.
The WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the European dividend-paying market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.58%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 5.06%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Postnl Nv (PNL) accounts for about 3.77% of the fund's total assets, followed by Banca Farmafactoring Spa (BFF) and Diversified Energy Co (DEC).
DFE's top 10 holdings account for about 15.8% of its total assets under management.
Performance and Risk
The ETF has lost about -24.18% so far this year and is down about -20.03% in the last one year (as of 06/27/2022). In the past 52-week period, it has traded between $56.73 and $79.11.
The ETF has a beta of 1.15 and standard deviation of 24.90% for the trailing three-year period, making it a medium risk choice in the space. With about 309 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Europe SmallCap Dividend ETF is a reasonable option for investors seeking to outperform the European Equity ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan BetaBuilders Europe ETF (BBEU) tracks MORNINGSTAR DEV EUROPE TARGET MKT EXP ID and the Vanguard FTSE Europe ETF (VGK) tracks FTSE Developed Europe All Cap Index. JPMorgan BetaBuilders Europe ETF has $5.22 billion in assets, Vanguard FTSE Europe ETF has $16.28 billion. BBEU has an expense ratio of 0.09% and VGK charges 0.08%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the European Equity ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports
Vanguard FTSE Europe ETF (VGK): ETF Research Reports
JPMorgan BetaBuilders Europe ETF (BBEU): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. Fund Sponsor & Index Managed by Wisdomtree, DFE has amassed assets over $238.27 million, making it one of the average sized ETFs in the European Equity ETFs. DFE's top 10 holdings account for about 15.8% of its total assets under management.
|
WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. Fund Sponsor & Index Managed by Wisdomtree, DFE has amassed assets over $238.27 million, making it one of the average sized ETFs in the European Equity ETFs.
|
The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. Fund Sponsor & Index Managed by Wisdomtree, DFE has amassed assets over $238.27 million, making it one of the average sized ETFs in the European Equity ETFs. DFE's top 10 holdings account for about 15.8% of its total assets under management.
|
The WisdomTree Europe SmallCap Dividend ETF (DFE) was launched on 06/16/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the European Equity ETFs category of the market. WisdomTree Europe SmallCap Dividend ETF (DFE): ETF Research Reports Fund Sponsor & Index Managed by Wisdomtree, DFE has amassed assets over $238.27 million, making it one of the average sized ETFs in the European Equity ETFs.
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2e1e9024-2048-4a92-a026-500299b11802
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