The 10-second takeaway
For the quarter ended March 31 (Q1), Ctrip.com International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share was unchanged.
Margins shrank across the board.
Ctrip.com International reported revenue of $186.9 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $174.2 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $144.5 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 $0.30. The eight earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. Non-GAAP EPS of $0.30 for Q1 were 7.1% higher than the prior-year quarter's $0.28 per share. GAAP EPS of $0.18 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.8%, 140 basis points worse than the prior-year quarter. Operating margin was 13.8%, 560 basis points worse than the prior-year quarter. Net margin was 13.2%, 540 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $185.7 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $800.8 million. The average EPS estimate is $1.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,005 members out of 4,174 rating the stock outperform, and 169 members rating it underperform. Among 995 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 959 give Ctrip.com International a green thumbs-up, and 36 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ctrip.com International is outperform, with an average price target of $21.79.
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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.