Ctripcom International Ltd (NASDAQ:CTRP)
Ctrip.com International Ltd. is set to report its 2016 first quarter earnings tonight, Wednesday June 15, 2016, and the consensus is for a loss of (-0.02) on revenues of $4.15 billion.
CTRP Technicals
Shares of CTRP are trading lower by over -3% in today’s session ahead of this evenings earnings report. Recently, CTRP broke below both its 100 and 200 day moving averages and is moving back toward its early 2016 lows. At the same time, CTRP is beginning to break to the downside out of a long-term macro wedge.
Today’s earnings report will be critical in determining the next strong directional move on an already volatile trading stock. Tomorrow’s session will undoubtedly bring a wide trader on high volume, which will provide great trading opportunities.
Analyst Expectations
Analysts at Oppenheimer & Co. had the following comments they released back on June 2, 2016 as a preview to tonight’s report:
1Q Preview: Favorable Travel Backdrop with Potential Upside to Margins
We expect CTRP to report 1Q (March 31) results by mid-June. We see the company’s dominant share of tier-1 lodging markets driving S&M leverage, and providing potential upside to the Street’s ’16E operating margin of 10.5% vs. Opco’s 12.1%. Improving lodging metrics and healthy air-passenger growth create a favorable backdrop for share gains in China’s fragmented travel market. CTRP’s asset-light distribution channel for independent travel agents is proving effective in lower-tier markets. Sentiment into the print appears mixed, with most investors expecting upside to margins from dissipating competition that is somewhat offset by near-peak short interest. We would take advantage of any pullback.
About Ctrip.com International, Ltd.
Ctrip.com International Ltd. (Ctrip), incorporated on March 1, 2000, is a travel service provider for accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China. The Company aggregates hotel and transportation information to enable business and leisure travelers to make bookings. It helps leisure travelers book tour packages and guided tours, and helps corporate clients manage their travel requirements. In addition, it offers a range of other travel-related services, including travelers’ reviews, attraction tickets, travel-related financing and car services, and travel insurance and visa services to meet the various booking and travelling needs of both leisure and business travelers. The Company also offers Internet-related advertising and other related services.