Ctrip's Strong Revenue, Income Fail to Impress Shareholders; Stock Ends Down 3%
Solid results and a confident outlook did not boost the Chinese travel agency's stock, which ended $1.20 lower on the day.
Ctrip.Com International Ltd. (Nasdaq: CTRP) posted better-than-expected financial results for the first quarter, yet its stock closed 3 percent lower Thursday, at $36.46 per American depositary share.
The Shanghai-based company, Asia's largest travel booking platform, said in a statement Wednesday evening after markets closed that in the three months through March its income quadrupled year-over-year to $687 million, or $1.11 per share. Revenue surged 21 percent to $1.2 billion, according to the report.
"Ctrip delivered solid results in the first quarter of 2019," said the chief executive officer of Ctrip, Jane Sun.
She added, "Not only do we listen to our customers, we also lead the market as new opportunities emerge. We align our strategy in a prudent manner to suit the market. The great results reflect our determination to create the best travel experience through Ctrip's one-stop travel platform in the world."
James Liang, the company's executive chairman, added in a statement, "We also have achieved an excellent record of global strategic investments and collaborations. We are excited about our recent MakeMyTrip investment and look forward to achieving greater success and creating more value to our shareholders in the future."
Ctrip also said its expenses in the third quarter increased across all sectors, with product development rising 18 percent, sales and marketing increasing 6 percent, and general and administrative expenses up 28 percent.
Looking forward, the company said it expects to generate revenue in the second quarter at a year-over-year increase in the range of 16 to 21 percent.