Ctrip Stock Soars 22% After Beating on Earnings
Shares in the online travel agency Ctrip.Com International Ltd. (Nasdaq: CTRP) soared in early trading today after the company released results for the fourth quarter after markets closed on Monday.
Ctrip stock was up $7.80 per share, or 22 percent, to $42.78 per share today.
"The solid results in the fourth quarter of 2018 ended the year on a strong note," said Ctrip's CEO Jane Sun.
"We are pleased with Ctrip's overall performance in 2018," added James Liang, Ctrip's chairman and one of its founders.
Revenue for the quarter ended Dec. 31 rose 22 percent year-over-year to RMB 7.56 billion ($1.1 billion).
Ctrip's non-GAAP results came in much better than expected. Net income was RMB 513 million ($72 million), or 13 cents per ADS. Analysts had projected a non-GAAP loss of 3 cents per share.
Ctrip posted a GAAP loss of RMB 1.19 billion ($176 million), down from GAAP net income of RMB 350 million in the fourth quarter of 2017. This translates to a loss of 32 cents per fully diluted American depositary share.
"Over the year, despite various challenges, we focused on developing innovative new products, offering increased support to our suppliers, and most importantly, putting the customer at the center of everything we do. As a result, we accelerated the pace which we are gaining market share," Sun said.
Ctrip's gross merchandise value (GMV), the amount customers purchased through its platform, rose 30 percent year-over-year to RMB 725 billion ($105 billion). The company said it was "well on track" to reach its 2020 target of RMB 1 trillion in GMV.
According to the company, Ctrip's international business now accounts for 30 to 35 percent of its revenue. Ctrip is also focusing on expanding to lower-tier cities in China, and has 7,000 stores mostly in these cities. The number of nights spent at low-star hotels rose 50 percent year-over-year.
Revenue for the full year 2018 rose 16 percent to RMB 31 billion ($4.5 billion). Ctrip posted RMB 1.1 billion ($162 million) in GAAP net income in 2018, or 29 cents per diluted ADS.
The company expects its first-quarter revenue, which totaled RMB 6.7 billion in 2018, to increase 18 to 23 percent in 2019.
Ctrip stock is up 62.1 percent year-to-date.
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