The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ctrip.com International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Ctrip.com International booked revenue of $186.6 million. The 13 analysts polled by S&P Capital IQ expected net sales of $179.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $152.7 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 $0.35. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.30 per share. GAAP EPS of $0.22 for Q3 were 33% lower than the prior-year quarter's $0.33 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 75.6%, 120 basis points worse than the prior-year quarter. Operating margin was 16.2%, 1,500 basis points worse than the prior-year quarter. Net margin was 16.5%, 1,690 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $169.6 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $653.1 million. The average EPS estimate is $1.18.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,069 members out of 4,237 rating the stock outperform, and 168 members rating it underperform. Among 1,076 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,039 give Ctrip.com International a green thumbs-up, and 37 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 $17.96.
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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 recommend 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.