The 10-second takeaway
For the quarter ended June 30 (Q2), Ctrip.com International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Ctrip.com International logged revenue of $153.3 million. The 15 analysts polled by S&P Capital IQ hoped for revenue of $154.2 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $128.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.24. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.13 for Q2 were 52% lower than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.2%, 200 basis points worse than the prior-year quarter. Operating margin was 17.3%, 1,490 basis points worse than the prior-year quarter. Net margin was 12.3%, 1,940 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $182.6 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $659.7 million. The average EPS estimate is $1.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,097 members out of 4,289 rating the stock outperform, and 192 members rating it underperform. Among 1,024 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 969 give Ctrip.com International a green thumbs-up, and 55 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 $21.87.
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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 of Motley 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.