Trip.com Group Ltd shares rose more than 4% to $35.80 in early Thursday trading after the China-based travel service provider swung to a first-quarter 2023 adjusted profit of $0.45 per share from a loss of $0.01 per share a year earlier, surpassing the Zacks consensus estimate of $0.27 per share.
The company’s revenue for the quarter also rose to $1.34 billion from $649 million during the same period last year, exceeding the consensus analyst forecast by nearly 14%, which Trip.com attributed to an upsurge in both domestic and outbound travel activities in China.
Trip.com noted that its 1Q net revenue increased by 124% year over year, exceeding the pre-COVID level in 2019.
“Over the past three years, we have focused on strengthening our supply chain, content offerings, and service quality,” Trip.com Group CEO Jane Sun said in a statement.
“Such improvements empower us to better capture the pent-up demand for travel and establish a solid foundation for sustainable growth.”
The company added that domestic hotel bookings for the quarter grew by more than 100% year over year, while same city staycation hotel bookings surged 150%.
Shares of Trip.com have climbed more than 41% on the Nasdaq over the past 52 weeks.
Contact Sean at sean@proactiveinvestors.com