Ctrip Stock Drops 4% After Hours on Soaring Net Loss
Shares in the company, after ending the day up 3 percent, tumbled in after-hours trading after Ctrip posted its third quarter financials.
Ctrip.Com International Ltd. (Nasdaq: CTRP) posted higher-than-expected revenue for the third quarter, while its net loss topped 1 billion yuan, sending its stock down more than 4 percent in after-hours trading Wednesday.
Asia's largest travel booking platform, Ctrip said in a statement after the market closed today that in the three months through September it had net loss of $165 million, or 30 cents per share, in contrast to income of $212 million a year ago.
Despite beating the consensus on revenue, which surged 14 percent year-over-year to $1.4 billion in the third quarter, the stock of the travel booking giant shed $1.44 after-hours to $33 per American depositary share.
Ctrip attributed the loss to the equity securities investments measured at fair value. At the same time, the company noted increased sales across all its businesses: accommodation, transportation, packaged tours, and corporate travel.
"Ctrip continued making solid progress in each of our business area in the third quarter of 2018," James Liang, the company's executive chairman, said in a statement today.
The chief executive officer, Jane Sun, added: "We are seeing our large, growing and loyal customer base continue to increase their engagements on Ctrip. With our strong foundation in the travel industry, despite the ongoing macro uncertainty, we are confident that we are the best travel company to capture more travel market share going forward."
Ctrip also said its expenses in the third quarter increased across all sectors, with product development and sales and marketing jumping 14 percent each, and general and administrative expenses inching up 2 percent. Total expenses reached $857 million for the three-month period.
Looking forward, the company said it expects to generate revenue in the fourth quarter at a year-over-year increase in the range of 15 to 20 percent.