Ctrip Results Surpass Street Estimates; Stock Up - Update

(RTTNews) - Chinese online travel services provider Ctrip.com International Ltd (CTRP), on Wednesday reported a swing to loss in the first quarter despite a 46 percent jump in revenue, hurt by stock-based compensation expense and other costs. However, results for the quarter surpassed Wall Street estimates.

The company also provided a strong revenue outlook for the second quarter.

Following the announcement, Ctrip shares gained more than 10 percent in after-hours trade on the Nasdaq.

Ctrip reported first-quarter net loss to shareholders of RMB 126 million, or $20.3 million, compared to a profit of RMB 115.4 million, or $19 million last year.

On a per American depositary share basis, loss for the quarter was RMB 0.90, or $0.15, compared to a profit of RMB 0.75, or $0.12 last year.

Excluding share-based compensation expense, adjusted earnings per ADS for the quarter were RMB 0.23, or $0.04, compared to RMB 1.52, or $0.24 last year.

On average, 11 analysts polled by Thomson Reuters expected a loss of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

The company's total revenues for the quarter climbed 46 percent to RMB 2.44 billion, or $394.1 million; from RMB 1.67 billion in the prior year.

Net revenues for the first quarter were up 46 percent at RMB 2.31 billion, or $373.4 million, compared to RMB 1.58 billion a year ago. Ten analysts had a consensus revenue of $362.6 million for the quarter.

The company said it benefited from strength in accommodation reservation volume and transportation ticketing volume in the quarter.

Gross margin for the quarter slid to 70 percent from 72 percent a year ago.

Operating expenses were higher at RMB 1.79 billion, or $288.8 million; compared with RMB 1.06 billion last year, due to higher product development and marketing costs.

For the second quarter, Ctrip expects net revenue to grow 45 to 50 percent from a year ago. Analysts currently expect a growth of 42.3 percent.

CTRP closed Wednesday's regular trade at $65.36, up $0.23 or 0.35%, on a volume of 3 million shares. In after hours, the stock gained $6.64 or 10.16% at $72.00. In the past year, the stock traded in the range of $40.74 - $69.74.