Poetic Portfolios

Up until the financial crisis, long-time investors knew not to trust Ctrip’s management when they provided guidance of 25% growth. Inevitably, the company produced earnings and revenue growth well in excess of 25%. In their most recent quarter, Ctrip seems to have resumed their phenomenal growth. For their fiscal third quarter, they produced net revenue growth of 47% on a year-over-year basis. Excluding the impact of the ezTravel acquisition, net revenues grew at a 40% year-over-year rate. Earnings growth was even more impressive, growing 80% on a year-over-year basis to $28 million. (more…)

ADP continues to hold steady in the current economy based on their first quarter earnings report. Revenues compared to the first quarter of 2009 declined 4% to $2.1 billion. ADP notes that net earnings from continuing operations increased 2% while diluted earnings per share from continuing operations increased 4% from $0.54 to $0.56 per share. (more…)

In a recent post, I calculated an intrinsic value for Netflix at $43 per share. This assumed 22% growth this year. In their third quarter, Netflix posted profits that were up 48% year-over-year on a revenue increase of 24%. Gross margins remained relatively constant, but net margins grew largely as a result of less marketing as a percentage of gross profit. (more…)