Ctrip.com Guiding Lower

Tags: ctrp
20 Nov 1:56am
Posted by ZacksResearch
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Ctrip.com International, Ltd. (CTRP) reported third quarter results that were in-line with market expectations. However, the company's fourth quarter sales guidance was well below expectations.

We were already below consensus with our fourth quarter EPS estimate, so our 2008 EPS stays at $0.89. However, we lowered our 2009 EPS estimate from $1.11 to $0.96, as we believe the weakening sales trends will continue into the first half of 2009.

The company's near-term prospects have deteriorated because slowing global economic growth has reduced the demand for travel-related services, and that is hurting Ctrip.com's revenues and margins. Longer term, Ctrip.com is well positioned to generate strong growth as more Chinese consumers use online travel-related services. We maintain our Hold rating on CTRP shares.

Read the full analyst report on CTRP.



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