Ctrip.com Plunges 8% On Weak Outlook, But Q3 Results Top View

(RTTNews) - Shares of Ctrip.com International Ltd. (CTRP) soared more than nine percent in extended trading on Thursday after the Chinese travel services company provided revenue growth forecast for the fourth quarter, below Street view.

However, the company also reported a profit for the quarter that surged 92 percent from last year, reflecting improved operating margins and strong double-digit revenue growth. Both adjusted earnings per share and quarterly revenues also came in significantly above analysts' expectations.

Ctrip.com International provides travel service of hotel accommodations, airline tickets, packaged tours and corporate travel management in China.

"We are excited to report great results in the third quarter of 2013. We achieved strong growth in our major businesses and just recently saw the daily transaction value from Ctrip's mobile channels reach a record of RMB100 million," Chairman and CEO James Liang said in a statement.

Shanghai-based Ctrip.com reported net income of RMB 372.99 million or $61 million for the second quarter, up 92 percent from RMB 193.82 million in the prior-year quarter. Earnings per ADS surged to RMB 2.44 or $0.40 from RMB 1.41 last year.

Excluding share-based compensation charges, adjusted net income for the quarter was RMB 482 million or $79 million, compared to RMB 302 million in the prior-year quarter. Earnings per ADS were RMB 3.14 or $0.51, compared to RMB 2.20 or $0.35 a year ago.

Total revenues for the quarter increased 32 percent to RMB 1.64 billion or $268 million from RMB 1.25 billion in the same quarter last year.

Net revenues grew 31 percent to RMB 1.54 billion or $252 million from RMB 1.17 billion in the prior-year quarter.

On average, eleven analysts polled by Thomson Reuters expected the company to earn $0.27 per share for the quarter on revenues of $241.68 million. Analysts' estimates typically exclude special items.

Ctrip.com's hotel reservation revenues for the second quarter grew 34 percent to RMB 611 billion or $100 million, primarily driven by a 40 percent increase in hotel reservation volume, partly offset by a decline in commission per room night amid promotional activities.

Air ticket booking revenues rose 26 percent to RMB 604 million or $99 million, reflecting a 31 percent increase in air ticketing sales volume, partially offset by a decrease in commission per air ticket.

Packaged-tour revenues increased 43 percent to RMB 320 million or $52 million, due to the increase of leisure travel volume. Corporate travel revenues grew 33 percent to RMB 72 million or $12 million, driven by the increased corporate travel demand from business activities.

"We expect mobile to become Ctrip's most important booking platform in the near future, and we will continue to extend our leadership in the online and mobile travel markets in China," Liang added.

Operating margins for the quarter improved 300 percentage points to 19 percent from last year's 16 percent.

Looking ahead to fourth quarter, Ctrip.com forecasts net revenue growth of about 20 to 25 percent from the prior year. Analysts expect the company to report a 26.6 percent growth in revenues to $223.85 million.

CTRP closed Tuesday's regular trading session at $59.19, up $1.08 or 1.86% on a volume of 4.35 million shares. However, the stock plunged $4.59 or $7.75% in after-hours trading.