Ctrip.Com International Ltd (NASDAQ: CTRP) is running for the top in the market this morning, and for good reason. The company reported its financial report for the fourth quarter, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from CTRP stock as a result; and
- what we’ll be watching for ahead.
CTRP Announces Financial Results
As mentioned above, Ctrip.com International is having a great start to the trading session this morning after announcing its fourth quarter earnings. In a press release, the company issued its unaudited financial results for the fourth quarter. Here’s what we saw from the report:
- Revenue – In terms of revenue, the company did overwhelmingly well. During the fourth quarter, the company generated $7.56 billion. That figure proved to beat analyst expectations of $7.19 billion in revenue.
- Earnings – CTRP also did incredibly well when it comes to earnings. Analysts expected that the company would generate a loss of $0.24 per share. However, the company actually generated earnings per share in the amount of $0.13 per share.
In a statement, Jane Sun, CEO at CTRP, had the following to offer:
The solid results in the fourth quarter of 2018 ended the year on a strong note. 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. Transacting users for our China brands continued to grow and now total 135 million, which represents a 25% CAGR increase over the past two years. GMV continued to grow at 30% year-on-year, which puts us well on track to reach our 2020 target.
The above statement was followed up by James Liang, Executive Chairman at the company. Here’s what he had to offer:
We are pleased with Ctrip’s overall performance in 2018. Looking into 2019 and the longer term, we are confident of continued growth. Based on the strong foundation we have laid over the past few years, we expect our market share to increase at an even faster pace going forward as we continue to leverage operational improvements.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Ctrip.com International, the news proved to be overwhelmingly positive.
After all, the ocmpany beat analyst expectations on both the top and bottom line. So, it comes as no surprise to see that excited investors are pushing the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:15), CTRP is trading at $39.67 per share after a gain of $4.68 per share or 13.38% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CTRP. In particular, we’re interested in following the story surrounding the company’s continued work to expand its sales and provide value to invetors. Considering the fact that the Trade War seems to be coming to an end, the company could see strong gains as the economic outlook for China improves. Nonethelss, we’ll continue to follow the story closely and bring the news to you as it breaks!
What Do You Think?
Where do you think CTRP is headed? Join the discussion in the comments below!
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