Ctrip.com (CTRP): Q4 EPS of $0.35 beats by $0.1. Revenue of $177M (+19% Y/Y) beats by $3.29M. Shares +3% AH. (PR) [View news story]
The Company made a nice headline, with fully diluted adjusted EPS beating Bloomberg consensus by 39.4%. However, 4Q12 operating income of RMB119.9 mn, down 48.0% YoY, was only 2.3% higher than consensus expectations. Net revenue grew 19.0% YoY, near the top of the Company’s 15%-20% guidance range. However, gross margin declined and the operating expense ratio continued its uninterrupted climb that began in 1Q11. The EPS beat comes as Ctrip’s bottom line benefitted from non-operating items including 1) RMB58 million in “Other”, which is mainly government subsidies; and 2) RMB 29.7 million from non-controlling interests, which had been negative in previous quarters.
I would like to point out the following inaccuracy.
"For the full year the OP margin will be largely around 30%.....[conference call]"
This is incorrect. The actual quote from the conference call (which you can find on Bloomberg) is:
"And previously, we are talking about for the full year OP margin will be largely around 30%...."
The key word here is PREVIOUSLY. After 1Q 2012, management guidance for 2012 was for non-GAAP operating margin of about 30%. However, after the most recent 2Q 2012 results, management lowered their guidance range to 25%-30%, conference call quote as follows:
"But for the full year, our best judgment so far with [indiscernible] around 25% to 30% range."
"This has caused Ctrip to get negative press in the country."
Can you add the sources for this comment (prefereable link to news articles)? I live in China and read local news in Chinese and have not heard anything on negative press for Ctrip because of its hotel equity investments (but maybe I just missed it).
Ctrip.com (CTRP): Q4 EPS of $0.35 beats by $0.1. Revenue of $177M (+19% Y/Y) beats by $3.29M. Shares +3% AH. (PR) [View news story]
Ctrip.com Attractively Priced, Despite Margin Pressure [View article]
"For the full year the OP margin will be largely around 30%.....[conference call]"
This is incorrect. The actual quote from the conference call (which you can find on Bloomberg) is:
"And previously, we are talking about for the full year OP margin will be largely around 30%...."
The key word here is PREVIOUSLY. After 1Q 2012, management guidance for 2012 was for non-GAAP operating margin of about 30%. However, after the most recent 2Q 2012 results, management lowered their guidance range to 25%-30%, conference call quote as follows:
"But for the full year, our best judgment so far with [indiscernible] around 25% to 30% range."
Business Is Booming At eLong [View article]
Can you add the sources for this comment (prefereable link to news articles)? I live in China and read local news in Chinese and have not heard anything on negative press for Ctrip because of its hotel equity investments (but maybe I just missed it).