Ctrip.Com International Ltd (ADR)(NASDAQ: CTRP) in the third quarter 2016 has reported the adjusted earnings per ADS of 17 cents beating the average estimate of the analysts of a loss of 8 cents per share.Ctrip.Com has reported the revenue growth of 75% to $835.6 million in the 3Q 2016 beating the analysts forecasts of $824.4 million. Ctrip.Com revenue grew due to the consolidation of the financial results of Qunar Cayman Islands Limited starting from December 31st, 2015. Ctrip.Com net revenues grew 26% from the previous quarter on a sequential basis primarily due to seasonality. The accommodation reservation revenues grew 51% for the third quarter of 2016 to US$311 million, the transportation ticketing revenues grew 101% to US$122 million, corporate travel revenues grew 34% to US$25 million and the packaged-tour revenues grew 37% to US$122 million.
However, the company reported 77% fall in the profit on year over basis but recovered from the loss posted in the previous quarter.
In September 2016, Ctrip.Com has raised US$2.6 billion through the concurrent offerings of both ADSs and convertible senior notes. On November 16th, 2016, CTRP appointed Ms. Jane Jie Sun as Chief Executive Officer and director.
Ctrip.Com is undertaking various strategic international investments, like acquisition of Skyscanner and two large US tour operators specialized in serving Chinese travel. Meanwhile, CTRP has signed a definitive agreement with the majority shareholders of Skyscanner Holdings Limited to acquire the shares of Skyscanner at approximately £1.4 billion and the purchase consideration consisting of cash mainly, the remainder will consist of CTRP shares and loan notes. The deal is expected to close by the end of the year and the Skyscanner’s current management team will continue to manage its operations independently post the close of the deal. Skyscanner was considering the option for a sale or an initial public offering, is available in more than 30 languages and has about 60 million monthly active users.
For the fourth quarter of 2016, the Company expects the net revenue growth to continue at a year-on-year rate of approximately 70-75%.
CTRP stock has been bearish this month and fell over 13.9% (as of November 23rd; Source: Google Finance). According to tipranks.com, 7 analysts has covered the stock while recommend a “Strong Buy”. CTRP has an average price target of $54.40, which is a further upside of 32.72%.