What does TRVG's EPS trend suggest for investors?
4/7/2025 12:11am
**Trivago's (TRVG) EPS trend suggests a company that is yet to demonstrate consistent profitability**, which is a key concern for investors. Here's an analysis based on the available data:
1. **Recent Performance**: Trivago's EPS for the most recent quarter (2024Q4) was $0.01. This is a significant improvement from the previous quarter's loss of €0.071 per share, indicating a potential turnaround.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|TRVG|TRVG.O|Trivago|2024 Q1|-166.16997792494482|-0.021582|185|
|TRVG|TRVG.O|Trivago|2024 Q2|-149.0430402930403|-0.010711|185|
|TRVG|TRVG.O|Trivago|2024 Q3|92.05279596115177|-0.04458|185|
|TRVG|TRVG.O|Trivago|2024 Q4|-6.4274091484360865|0.010351|185|
2. **Annual Comparison**: However, when compared to the full year 2023, Trivago's EPS has not yet reached profitability. The company reported a €2.38 loss per share in 2023, which is a stark contrast to the positive EPS in 2024.
3. **Investor Caution**: Despite the recent positive trend, investors should exercise caution. The company's share price has not been profitable over the long term, with a 61% decline over the last three years. This suggests that while there may be short-term gains, the company's underlying fundamentals do not yet support sustained profitability.
4. **Revenue Growth**: Trivago's revenue has shown modest growth, with a 2.1% annual increase over the last three years. This is a positive sign, but it is crucial that the company continues to improve its profitability to attract and retain investors.
In conclusion, while Trivago's EPS trend shows potential for recovery, the company's history of losses and the current lack of consistent profitability may deter some investors. The trend suggests that investors should monitor the company's financial performance closely, looking for signs of sustained profitability before making investment decisions.