NEW YORK (TheStreet) -- Shares of Ctrip.com International (CTRP) are slipping by 5.7% to $40.18 on Thursday morning, after the company reported better-than-expected 2015 fourth quarter results, but provided soft guidance for the first quarter.
After yesterday's market close, the Shanghai-based travel service provider posted adjusted earnings of 11 cents per ADS, surpassing analysts' estimates for a loss of 4 cents per share.
Revenue soared 50% to 2.9 billion yuan ($444 million) year-over-year, beating Wall Street's estimates of 2.8 billion yuan.
Accommodation revenue rose by 41% to 1.2 billion yuan year-over-year, but was on the low end of the company's guidance of 40% to 50% growth, Barron's noted. Packaged tour revenue spiked 50% year-over-year, also barely in line with its forecast of a 50% to 60% increase.
For the first quarter, Ctrip.com expects revenue to increase 75% to 80%. This is 11% below pro-forma estimates from Wall Street, Oppenheimer said in an analyst note this morning.
"Management did not provide standalone growth rates due to inventory sharing. Lower-than-expected guidance from: 1) airlines' suspending relationships with QUNR's flagship store, QUNR downsizing hotel merchant model in tier-1&2 cities, and inventory sharing not reflected in Street models," the firm, which has an "outperform" rating on the stock, said.
Qunar Cayman Islands (QUNR) is the company's mobile and online commerce platform for travel in China.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, notable return on equity, expanding profit margins and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: CTRP
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.