Ctrip.com International Ltd. (NASDAQ: CTRP)
Ctrip.com China’s leading online travel service announced positive earnings that beat wall street estimates. Sending shares up 4% at today’s open from yesterday’s close price.
Ctrip.com Earnings and Outlook
Reports Q2 (Jun) earnings of $0.30 per share, $0.14 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 47.1% year/year to $407.6 mln vs the $407.32 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of +45-50% YoY to $505-520M vs. $495.76M Capital IQ Consensus Estimate. Yahoo Finance
“We are pleased with the great results achieved in all business segments this quarter. Accommodation reservation volume increased 55% year-over-year. Transportation ticketing volume again delivered the record-breaking year-over-year growth of 106% with air ticketing volume increasing 60% on a yearly basis. The package-tour business growth accelerated to 61% year-over-year in revenue with a robust (inaudible) in growth. Net revenue of the company reached over RMB2.5 billion, up 47% year-over-year, the highest organic growth rate of the company since 2008. Net commission earned was RMB2.49 billion, up 45% year-on-year. Net commission earned is calculated by deducting from revenue the inventory cost where a company takes inventory risks. The company also treats deep discounts which generate losses at contra revenue. Together with such strong top line growth we delivered a great bottom line performance that we committed to the market. We generated RMB214 million as non-GAAP upward income in the second quarter making us the most profitable online travel company in China.” The Street
CTRP Technical Analysis
CTRP gapped up in price today to $74.61 up from yesterday’s close of $71.45 which is a 4% increase based on positive earnings news. Taking a look at the daily chart we can see the last time the stock traded at this price was on July 23 when it reached a high of $77.57 and closed at $75.15. Also on July 14 it reached a high of $74.95 and closed at $74.33. The stock is forming a mini bull trend of higher highs. I would look for $75.00 to be my entry level with a possible add on at the previous high of $77.57. My stop price would be $74.00 fearing if we fall below that level the stock has a greater chance of filling the gap up in price.
Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, transportation ticketing services, packaged tours, and corporate travel management in the Peoples Republic of China. It also offers independent leisure travelers bundled packaged-tour products, including group tours, semi-group tours, and private tours or packaged tours with various transportation arrangements, such as cruise, bus, or self-driving. In addition, the company provides integrated transportation and accommodation services; various value-added services, including transportation at destinations and tickets, insurance, visa services, and tour guides; supplier management and customer relationship management services; and car rental services. Further, it offers Internet-related advertising, aviation and train insurance selling, air-ticket delivery, online check-in, and online seat selection and flight dynamics services; and sells Property Management System, a hotel information software, as well as provides related maintenance services. Ctrip.com International, Ltd. was founded in 1999 and is headquartered in Shanghai, the Peoples Republic of China. Yahoo Finance