Trivago NV – ADR (NASDAQ:TRVG) stock was down on Wednesday following a warning concerning its 2017 guidance.
Trivago NV – ADR says that it now expects its guidance for fiscal 2017 to be lower than previously expected. This includes revenue only increasing by 40% this year when compared to last. It also says that it expects adjusted EBITDA to be lower than in 2016, but still positive.
Trivago NV – ADR notes that the lowered outlook for fiscal 2017 is due to a couple of reasons. First off, its says that Revenue per Qualified Referral (RPQR) is being more negatively impacted that what it was expecting.
Trivago NV – ADR also says that as a result of the negative impact on RPQR, it is reducing its marketing activities. However, the company is unable to pull some television ads. This will result in Return on Adverting Spend being lower in July and August.
Along with the two problems above, there are other issues affecting Trivago NV – ADR’s performance. This includes the weakness of the U.S. dollar compared to the Euro, as well as hard revenue comps in the summer fo 2016 when compared to 2015 and 2014.
It wasn’t just TRVG stock that fell on Wednesday following Trivago NV – ADR’s outlook warning for fiscal 2017. Following the profit warning, both Expedia Inc (NASDAQ:EXPE) and Priceline Group Inc (NASDAQ:PCLN) saw their shares drop on Wednesday morning.
TRVG stock was down 20% as of Wednesday morning, but is up 1% year-to-date. EXPE stock was down 3% and PCLN stock was down 1% as of Wednesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.