Upcoming AWS Coverage on Park Hotels & Resorts Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 26, 2017 / Active Wall St. announces its post-earnings coverage on Ctrip.com International, Ltd (NASDAQ: CTRP). The Company disclosed its Q1 FY17 financial results on May 10, 2017. China's leading online travel agency outperformed top- and bottom-line expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Ctrip.com International's competitors within the Lodging space, Park Hotels & Resorts Inc. (NYSE: PK), reported on May 03, 2017, its earnings results for Q1 ended March 31, 2017. AWS will be initiating a research report on Park Hotels & Resorts in the coming days.
Today, AWS is promoting its earnings coverage on CTRP; touching on PK. Get our free coverage by signing up to:
http://www.activewallst.com/register/.
Earnings Reviewed
For the three months ended March 31, 2017, Ctrip reported net revenues of RMB6.09 billion (US$884.05 million), representing a 46% increase from net revenues of $4.18 billion in Q1 2016. The Company's revenue numbers topped analysts' expectation of $866.7 million. For Q1 2017, Ctrip's gross margin was 80% compared to 73% in Q1 2016.
Ctrip's product development expenses for Q1 2017 fell 18% to RMB2.0 billion (US$285 million) on a y-o-y basis, primarily due to a decrease in share-based compensation charges, and accounted for 32% of the net revenues. Excluding share-based compensation charges, the Company's non-GAAP product development expenses for the reported quarter accounted for 28% of the net revenues, down compared to 32% in the year ago same period.
For Q1 2017, Ctrip's sales and marketing expenses increased by 22% to RMB1.9 billion (US$273 million) on a y-o-y basis, primarily due to an increase in sales and marketing related activities and accented for 31% of the net revenues. Excluding share-based compensation charges, non-GAAP sales and marketing expenses for Q1 2017 accounted for 30% of the net revenues, below the 33% in the year ago same period.
Ctrip's income from operations for Q1 2017 was RMB414 million (US$60 million) compared to loss of RMB1.8 billion in Q1 2016. Excluding share-based compensation charges, non-GAAP income from operations was RMB936 million (US$136 million) for the reported quarter compared to RMB8 million in the prior year's same quarter. The Company's operating margin for the reported quarter was 7% compared to negative 44% in Q1 2016. Excluding share-based compensation charges, Ctrip reported non-GAAP operating margin of 15% compared to 0% in the prior year's same quarter.
Net income attributable to Ctrip's shareholders was RMB82 million (US$12 million) for Q1 2017 compared to net loss of RMB1.6 billion in Q1 2016. The Company's diluted earnings per ADS were RMB0.15 (US$0.02) for the reported quarter. Excluding share-based compensation charges, non-GAAP diluted earnings per ADS, were RMB1.09 (US$0.16) for Q1 2017, which was also ahead of Wall Street's expectations for a loss of $0.07 per share.
As of March 31, 2017, Ctrip's balance of cash and cash equivalents, restricted cash, and short-term investments were RMB36 billion (US$5 billion).
Segment Results
Ctrip's Accommodation reservation revenues for Q1 2017 were RMB2.1 billion (US$301 million), representing a 28% increase on a y-o-y basis, primarily driven by growth in accommodation reservation volume.
For Q1 2017, Ctrip's Transportation ticketing revenues totaled RMB2.9 billion (US$418 million), representing a 48% increase compared to the year ago same quarter, primarily driven by an increase in ticketing volume and the consolidation of Skyscanner's financial results since December 31, 2016.
Ctrip's Packaged-tour revenues for Q1 2017 were RMB702 million (US$102 million), representing a 26% increase on a y-o-y basis, primarily driven by an increase in volume growth of organized tours and self-guided tours. The Company's Corporate travel revenues for the reported quarter surged 25% on a y-o-y basis to RMB144 million (US$21 million), primarily driven by expansion in travel product coverage.
Business Outlook
For Q2 2017, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 40%-45%. This forecast reflects Ctrip's current and preliminary view, which is subject to change.
Stock Performance
On Thursday, May 25, 2017, the stock closed the trading session at $55.71, climbing 1.40% from its previous closing price of $54.94. A total volume of 2.61 million shares have exchanged hands. Ctrip.com's stock price surged 12.23% in the last month, 14.77% in the past three months, and 33.05% in the previous six months. Furthermore, since the start of the year, shares of the Company have soared 39.27%. The stock currently has a market cap of $28.25 billion.
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SOURCE: Active Wall Street
