Ctrip.com International Beats on EPS, but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Ctrip.com International (NAS: CTRP) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Ctrip.com International met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly, while GAAP earnings per share dropped sharply.


Margins shrank across the board.

Revenue details
Ctrip.com International logged revenue of $144.6 million. The 11 analysts polled by S&P Capital IQ hoped for a top line of $143.9 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $116.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.28. The eight earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. GAAP EPS of $0.18 for Q1 were 25% lower than the prior-year quarter's $0.24 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 75.2%, 330 basis points worse than the prior-year quarter. Operating margin was 19.4%, 1,500 basis points worse than the prior-year quarter. Net margin was 18.6%, 1,210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $156.9 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $667.3 million. The average EPS estimate is $1.18.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,109 members rating the stock outperform and 172 members rating it underperform. Among 1,129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,088 give Ctrip.com International a green thumbs-up, and 41 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ctrip.com International is hold, with an average price target of $26.55.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Ctrip.com International. Motley Fool newsletter services have recommended buying shares of Ctrip.com International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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