The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ctrip.com International beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Ctrip.com International booked revenue of $176.8 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $173.9 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $146.9 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 nine earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.22 for Q4 were 19% 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 74.1%, 160 basis points worse than the prior-year quarter. Operating margin was 10.9%, 1,400 basis points worse than the prior-year quarter. Net margin was 17.5%, 980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $170.3 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $793.5 million. The average EPS estimate is $1.19.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,051 members out of 4,221 rating the stock outperform, and 170 members rating it underperform. Among 1,057 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,016 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 $20.46.
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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 recommends Ctrip.com International. The Motley Fool owns 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.