Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Ctrip Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese travel website International (NASDAQ: CTRP  ) surged 19% today after its quarterly results and outlook topped Wall Street expectations.  

So what: Ctrip's first-quarter profit sank 26% on higher expenses, but a wide top-line beat -- revenue surged 27% to $198 million versus the consensus $172.6 million -- coupled with upbeat guidance is prompting analysts to raise their growth estimates yet again. While operating margins shrank 500 basis points over the year-ago period, strong volume growth across all of its segments reinforces optimism over its market-share gains and competitive position going forward.

Now what: For the current quarter, management expects revenue growth of roughly 15%-20% over the year-ago period. "We will continue to focus on our mobile strategy, improve price competitiveness, strengthen partner relationships, and enhance marketing effectiveness," said Chairman and CEO James Liang. "We are excited to capture the opportunities in the travel industry in China and will work hard to elevate our leadership to the next level." With the stock busting through its 52-week highs and trading at a forward P/E of around 30, however, much of that opportunity might already be baked into the price.  

Interested in more info on Ctrip? Add it to your watchlist.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2420180, ~/Articles/ArticleHandler.aspx, 9/30/2016 4:19:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
CTRP $46.57 Down -0.23 -0.48% Internat… CAPS Rating: ***