Ctrip.com Earnings: Here’s Why Shares are Flying Higher

Ctrip.com International Ltd. (NASDAQ:CTRP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.05%.

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Ctrip.com International Ltd. Earnings Cheat Sheet

Results: Net income decreased -38.24% to $49 million (35 cents per diluted share) in the quarter versus a net gain of $79.34 million in the year-earlier quarter.

Revenue: Decreased 35.51% to $177 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ctrip.com International Ltd. reported adjusted net income of 35 cents per share. By that measure, the company beat the mean analyst estimate of $0.11. It beat the average revenue estimate of $174.27 million.

Quoting Management: “We are pleased with the solid results in the fourth quarter and full year 2012,” said Min Fan, President and Chief Executive Officer of Ctrip. “We remain focused on our strategy of offering our customers the best products with the best services at the best prices…

…2012 was the year of investment and we have enhanced our leadership in the online travel market of China. We will continue to invest in our customer services, product offering, brand recognition and technology development. Ctrip is well positioned to capture the fast growing opportunity in China travel market in the future.”

Key Stats:

Revenue increased 495.96% from $29.7 million in the previous quarter. Net income increased 897.96% from $4.91 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.15 to a profit $0.14. For the current year, the average estimate has moved up from a profit of $0.67 to a profit of $0.68 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)