Stock Monitor: China Lodging Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 11, 2017 / Active-Investors free earnings report on Ctrip.com International, Ltd (NASDAQ: CTRP) ("Ctrip") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=CTRP. The Company reported its third quarter fiscal 2017 operating results on November 01, 2017. The travel services Company outperformed top- and bottom-line expectations, and provided revenue guidance for the upcoming quarter. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for China Lodging Group, Limited (NASDAQ: HTHT), which also belongs to the Services sector as the Company Ctrip.com Intl. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Ctrip.com International most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=CTRP
Earnings Highlights and Summary
For the third quarter of 2017, Ctrip reported net revenues of RMB7.96 billion ($1.2 billion); representing a 42% increase compared to RMB5.67 billion in Q3 2016. The Company's revenue numbers exceeded analysts' expectations of $1.15 billion.
Ctrip's gross margin was 83% for Q3 2017 compared to 78% for Q3 2016. During Q3 2017, Ctrip's product development expenses increased 18% to RMB2.2 billion ($328 million) on a y-o-y basis, primarily due to an increase in product development personnel related expenses. The Company's product development expenses accounted for 28% of the net revenue for the reported quarter. Excluding share-based compensation charges, non-GAAP product development expenses accounted for 25% of the net revenue for Q3 2017, which decreased from 27% for Q3 2016.
For Q3 2017, Ctrip's sales and marketing expenses surged 58% to RMB2.4 billion ($357 million), primarily due to an increase in sales and marketing related activities, and accounted for 30% of the net revenue. Ctrip's general and administrative (G&A) expenses increased 25% to RMB674 million ($101 million) for Q3 2017, primarily due to an increase in G&A personnel-related expenses and consulting expenses and accounted for 9% of the net revenue.
Ctrip's income from operations was RMB1.4 billion ($204 million) for Q3 2017 compared to RMB447 million for Q3 2016. The Company's non-GAAP income from operations was RMB1.7 billion, or $262 million, for the reported quarter, compared to RMB1.0 billion for the prior year's same quarter. The Company's operating margin was 17% for Q3 2017 compared to 8% for Q3 2016. Excluding share-based compensation charges, Ctrip's non-GAAP operating margin was 22% versus 18% for the year ago comparable period.
The net income attributable to Ctrip's shareholders was RMB1.2 billion ($185 million) for Q3 2017 compared to RMB24 million for Q3 2016. The Company's diluted earnings per ADS were RMB2.10 ($0.32) for the reported quarter versus RMB 0.05 for the year ago corresponding period. Excluding share-based compensation charges, Ctrip's non-GAAP diluted earnings per ADS were RMB2.70 ($0.41) for Q3 2017. The Company's earnings beat Wall Street's estimates of $0.32 per share.
Segment Results
During Q3 2017, Ctrip's Accommodation Reservation segment's revenue was RMB2.8 billion ($424 million), representing a 36% increase on a y-o-y basis, and which was primarily driven by an increase in accommodation reservation volume. The Company's Transportation Ticketing segment's revenue surged 41% to RMB3.4 billion ($515 million) for the reported quarter, and was primarily attributed to an increase in ticketing volume and the consolidation of Skyscanner's financial results since December 31, 2016.
Ctrip's Packaged-Tour segment's revenue was RMB1.0 billion ($155 million) for Q3 2017, representing a 27% increase from Q3 2016, and was primarily driven by an increase in volume growth of organized tours and self-guided tours. The Company's Corporate Travel segment's revenue advanced 22% to RMB203 million ($30 million) for the reported quarter, and was primarily attributed to an expansion in travel product coverage.
Cash Matters
As of September 30, 2017, Ctrip's balance of cash and cash equivalents, restricted cash, and short-term investment was RMB47 billion ($7 billion).
Business Outlook
For the fourth quarter of 2017, Ctrip is forecasting net revenue growth to continue at a y-o-y rate of approximately 25% - 30%.
Stock Performance Snapshot
December 08, 2017 - At Friday's closing bell, Ctrip.com International's stock declined 1.78%, ending the trading session at $42.98.
Volume traded for the day: 7.22 million shares, which was above the 3-month average volume of 4.72 million shares.
Stock performance for year-to-date - up 7.45%
After last Friday's close, Ctrip.com International's market cap was at $23.29 billion.
Price to Earnings (P/E) ratio was at 71.28.
The stock is part of the Services sector, categorized under the Lodging industry. This sector was up 0.5% at the end of the session.
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