Ctrip.com International Ltd. (CTRP) has been taking advantage of the rebound in the Chinese economy. The company is expected grow 2009 earnings by 35.79%.
Ctrip.com provides online travel services to business and leisure travelers in China. Travelers can make hotel reservations, purchase flights and arrange vacation packages. Ctrip.com targets the frequent independent traveler who is looking to make informed and cost-effective travel bookings.
Ctrip.com Surprised by 25.81% in the Third Quarter
Continuing its hot streak, on Nov 11, Ctrip.com beat the Zacks Consensus Estimate for the fourth quarter in a row. Earnings per share were 39 cents compared to the consensus of 31 cents.
Revenues jumped 47% to $80 million compared to the year ago. All three of its segments saw revenues soar.
Hotel reservations rebounded, growing 41% year over year and jumping 16% from the prior quarter. Hotel reservation volume rose 47% but was partially offset by a decrease in commission per room.
Ticketing for airline travel also rose by 45% year over year and also increased 8% quarter-on-quarter. The story was the same for packaged tour revenues which rose 93% compared to the third quarter of 2008 and climbed 53% quarter-on-quarter as leisure travel volume rebounded.
The company also has cash on hand, as of Sep 30, 2009, of $207 million.
Fourth Quarter Outlook
Ctrip.com expects the growth to continue. It is projecting about 25% to 30% revenue growth in the fourth quarter.
Zacks Consensus Estimates Jump
With yet another big earnings surprise, covering analysts have been revising estimates higher. The fourth quarter Zacks Consensus Estimate is up 3 cents to 35 cents per share in the last 7 days.
5 out of 8 analysts raised full year estimates to $1.29 from $1.22 per share in the last week.
The 2010 Zacks Consensus Estimate is also jumping. Analysts expect year over year earnings growth of 32.73% in 2010. The Zacks Consensus is up $1.71 from $1.53 per share in the last 90 days.
The 2-Year Chart
Ctrip.com’s stock has been on fire since the March lows. The stock recently traded at new 52-week and 5-year highs. See the 2-year chart below.
