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Ctrip (CTRP) to Report Q3 Earnings: What's in the Cards?

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Ctrip.com International, Ltd. is set to report third-quarter 2018 results on Nov 7.

The company topped the Zacks Consensus Estimate in the trailing four quarters with an average beat of 110.03%.

In the last reported quarter, Ctrip delivered a positive earnings surprise of 52.63%. Non-GAAP earnings came in 29 cents, surging 31.8% on a year-over-year basis but declined 42.3% sequentially.

Net revenues of $1.1 million (RMB 7.3 billion) lagged the Zacks Consensus Estimate of $1.15 billion. However, revenues were up 13% from the year-ago quarter and 9% on a sequential basis. Growing revenues from accommodation reservation, packaged tour and corporate travel aided the top line.

For third-quarter 2018, management expects net revenues to exhibit year-over-year growth of 13-18%. The Zacks Consensus Estimate for revenues and earnings is pegged at $1.35 billion and 33 cents per share, respectively.

Let’s see how things are shaping up for this announcement.

Factors to Consider

The company’s continued efforts toward enhancement of its key offerings to cater to the changing travel patterns of the people are major positives. Further, Ctrip’s customer friendly offers and omnichannel strategy will continue to drive the user engagement on its platform.

The air and hotel protection program of Ctrip and its policy of full refund in case of any discrepancy regarding Visa application are likely to continue expanding the customer base.

Further, its well performing accommodation unit is anticipated to drive the top line in the to-be-reported quarter. The company’s growing presence in the low-star hotel market along with its strong hold in the mid to high-end star hotel market along with its intelligent hotel booking system are likely to boost the accommodation revenues in the third quarter.

Additionally, Ctrip continues to expand presence in the international market with its strong performing international air and hotel businesses, Moreover, direct booking program of Skyscanner which is gaining traction remains positive for the company’s international presence.

Furthermore, the company strengthening momentum among the corporate travelers remains a significant growth factor.

All these factors are anticipated to drive the results in the to-be-reported quarter.

However, softening trend in the air traffic remains a headwind for the company.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ctrip has a Zacks Rank #3 but an Earnings ESP of 0.00%, which makes surprise prediction difficult.

Stocks That Warrant a Look

Here are few stocks worth considering as our model shows that it has the right combination of elements to deliver an earnings beat in the upcoming releases.

Match Group (MTCH - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Adobe Systems (ADBE - Free Report) has an Earnings ESP of +0.19% and Zacks Rank #2.

Five9 (FIVN - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #3

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