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Nov. 6, 2019, 4:34 p.m. EST

TripAdvisor shares sink after special dividend, Trip.com joint venture announced

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By Max A. Cherney

TripAdvisor Inc. /zigman2/quotes/206118480/composite TRIP +0.92% shares fell roughly 4% in the extended session Wednesday after the company announced a joint venture with Trip.com Group Ltd. /zigman2/quotes/210510831/composite TCOM +2.64% and a special dividend of $3.50. The online travel company also reported third-quarter net income of $50 million, which amounts to 36 cents a share, versus profits of $69 million, or 49 cents a share in the year-ago quarter. Adjusted for stock-based compensation, among other things, earnings were 58 cents a share. Revenue fell to $428 million from $458 million a year ago. Analysts surveyed by FactSet had estimated adjusted earnings of 69 cents a share on sales of $459 million. TripAdvisor said that it announced a special cash dividend of $3.50 a share, or roughly $490 million in total, and an increase of its stock repurchase amount by $100 million for a total of $250 million. TripAdvisor also said Wednesday that it was entering into a partnership with Trip.com Group subsidiary Ctrip Investment Holding Ltd., that includes a joint venture and Trip.com taking a board seat. Trip.com will also acquire $317.6 million worth of TripAdvisor stock after the deal is approved by regulators. TripAdvisor also said it plans to evaluate its cost structure. TripAdvisor stock has fallen 24% this year, as the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.24% gained 23%.

/zigman2/quotes/206118480/composite
US : U.S.: Nasdaq
$ 27.53
+0.25 +0.92%
Volume: 780,650
Nov. 27, 2020 1:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$3.67 billion
Rev. per Employee
$371,960
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/zigman2/quotes/210510831/composite
US : U.S.: Nasdaq
$ 34.21
+0.88 +2.64%
Volume: 2.18M
Nov. 27, 2020 1:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$19.77 billion
Rev. per Employee
$103,761
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/zigman2/quotes/210599714/realtime
US : S&P US
3,638.35
+8.70 +0.24%
Volume: 1.22B
Nov. 27, 2020 2:07p
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