The 10-second takeaway
For the quarter ended June 30 (Q2), Ctrip.com International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins increased.
Ctrip.com International chalked up revenue of $202.8 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $192.7 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $153.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.36. The eight earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.36 for Q2 were 50% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.24 for Q2 were 85% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 75.2%, much about the same as the prior-year quarter. Operating margin was 17.7%, 40 basis points better than the prior-year quarter. Net margin was 16.9%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $231.3 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $834.8 million. The average EPS estimate is $1.23.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,987 members out of 4,155 rating the stock outperform, and 168 members rating it underperform. Among 1,073 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,037 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 $29.50.
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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. 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.