What Should We Expect From Ctripcom International Ltd.'s (NASDAQ:CTRP) Earnings Over The Next Few Years?

Ctripcom International Ltd.'s (NASDAQ:CTRP) most recent earnings announcement in December 2017 suggested that the business turned profitable again after experiencing losses in the previous financial year. Below is my commentary, albeit very simple and high-level, on how market analysts view Ctrip.com International's earnings growth outlook over the next few years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. Check out our latest analysis for Ctrip.com International

Analysts' expectations for the coming year seems positive, with earnings rising by a robust 16.44%. This growth seems to continue into the following year with rates reaching double digit 97.23% compared to today’s earnings, and finally hitting CN¥6.58B by 2021.

Even though it’s useful to understand the growth rate each year relative to today’s figure, it may be more beneficial to estimate the rate at which the company is moving on average every year. The pro of this approach is that we can get a better picture of the direction of Ctrip.com International's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 26.11%. This means that, we can assume Ctrip.com International will grow its earnings by 26.11% every year for the next couple of years.

Next Steps:

For Ctrip.com International, I've compiled three essential factors you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is CTRP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CTRP is currently mispriced by the market.
3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CTRP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.