Tuniu Q2 Gross Profit Drops 11% on Marketing Spend; Q3 Guidance Tepid
TOUR is trading near its 52-week low of $4.53 (8.4% above the low).
Summary
Tuniu's Q2 gross profit fell 11% year-over-year to RMB76.44M despite a 3% revenue increase to RMB138.92M, as cost of revenues rose sharply on higher promotion spending. The company swung to a net profit of RMB345,000, but the margin compression is the key negative. Q3 revenue guidance of RMB202.1M to RMB212.2M implies 0-5% growth, suggesting continued pressure. This follows the earlier Q2 net profit report, but adds the gross profit decline and forward guidance that traders will weigh against the stock's 11x forward P/E.
At the time of this announcement, TOUR was trading at $4.91 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $51.2M. The 52-week trading range was $4.53 to $9.85. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.