Despegar Inc. (DESP) stock gains during the pre-market trading. Let’s find out why?

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Despegar Inc. (NASDAQ: DESP) stock declined by 6.08% at the last trading close, whereas the DESP stock soars during the pre-market trading session by 11.61%. There is no latest news available related to the rise in DESP stock, yet Despegar announced its fourth-quarter 2020 financial results at the beginning of March 2021, which might be why the rise and fall in DESP stock price. Despegar is a well-known online travel company located in Latin America. Currently, it is operating in nearly 20 different countries. DESP provides its travelers with the most fantastic traveling experience, and its strong dedication towards excellent customer service has managed to bring it approximately 18 million customers.

Outlook on Q4 2020 financial results of Despegar

  • DESP has shown a quarterly loss of $0.24 per share compared to the loss of $0.35, estimated by Zacks Consensus. While a year ago,Despegar generated earnings of $0.01 per share. Besides, the values are given for non-recurring items.
  • The financial results of Despegar also show that DESP has three times exceeded the consensus EPS (earning per share) estimate.
  • DESP fourth quarterly report reflects a 31.43 per cent earnings surprise. This online travel business was anticipated to record a $0.39 per share a quarter ago, but it posted a loss of $0.41, providing a -5.13 per cent surprise.
  • Despegar has reported a revenue of $53.25 million for the quarter ended December 2020, which was 52.57% higher than the Zacks Consensus Estimate. Compared to $145.63 million for the previous year. Over the last four years, the organization has surpassed consensus sales expectations twice.
  • Also, DESP shares have shown a loss of about 0.2% since the start of 2021, whereas the S&P has shown a gain of 3.8%.

Conclusion

With the ongoing COVID-19 situation, the travel business has been damaged the most. Therefore, we can see that DESP has underperformed in the year 2020. Even today, Despegar and the analysts cannot make any specific statement about the progress of DESP in 2021, keeping in mind that the pandemic is still not over, and almost every country is under complete or bright lockdown, which makes it difficult to travel. Investors are supposed to be more vigilant regarding this whole uncertain situation before investing for an extended period of time.

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