Shares of Trip.com Group skidded after the online travel agency posted lower-than-expected adjusted earnings for the first quarter and guided for growth to slow.

The Hong Kong-listed stock fell as much as 9.4% to 320.40 Hong Kong dollars, equivalent to US$40.86, its lowest since August 2024. It has since pared its losses to trade 8.9% lower.

Trip.com on Thursday posted first-quarter revenue $2.4 billion, rising 17% compared with the same period as a year earlier, thanks to its overseas business as well as its inbound travel division's bookings. Despite the top line growth, the online travel agency's adjusted net profit declined 7%, as it was weighed by lower other income.

While revenue beat analysts' expectations, the adjusted earnings missed their estimates and could have led to the share-price fall.

The company also expects revenue to decelerate and grow by around 3%-8% in the second quarter, with a corresponding drag on margins and bottom-line results. The guidance was weaker than market expectations for a 14% expansion, said DBS Group Research analysts in a note.

Still, they reckon the soft guidance has already been priced into Trip.com's shares. The stock is around 42% lower year-to-date amid an ongoing investigation by Chinese regulators related to China's anti-monopoly law.

The analysts also expect Trip.com's overseas business momentum to remain robust, as the online travel agency is well-placed to benefit from growth of Chinese and international travel demand.

DBS maintains its buy rating and is reviewing its target price.