MakeMyTrip Stock Surges After Q3 Revenue Jump: Retail's Not Convinced

Its revenues stood at $267.4 million, jumping 24.8% year-over-year, beating consensus estimates

Shares of MakeMyTrip ($MMYT) jumped 6% on Thursday as the online travel company reported strong revenue jump for its third-quarter earnings compared to last year but missed earnings estimates, with retail sentiment staying bearish.

MakeMyTrip posted diluted earnings per share of $0.23, below the consensus estimate that Wall Street analysts expected at $0.27, according to Stocktwits data. 

However, Its revenues stood at $267.4 million, jumping 24.8% year-over-year, beating consensus estimates of $268.1 million.

The increase in revenue was primarily due to strong travel demand in India for both domestic and international outbound travel in the quarter, the company said. The revenue increase was led by its hotels and packages business which saw an increase of 23.4% over the last quarter to $121.9 million.

As at December 31, the company's cash and cash equivalents and term deposits stood at $705.5 million.

“The Indian travel and tourism sector is witnessing robust growth, reflecting a strong desire among travelers to explore new horizons. While Indian destinations continue to shine, many countries have made significant efforts to attract Indian travelers. Our strong performance this quarter reflects these macro trends, along with our focused execution and commitment to customer centricity," Rajesh Magow, Group CEO said.

Sentiment on Stocktwits inched up to 'bearish' from 'extremely bearish.' Message volumes were in the 'high' zone compared to 'extremely high' a day ago.

To be sure, some commenters on the Stocktwits platform were still bullish.

MakeMyTrip offers air ticketing, hotels and packages, and rail tickets, among other ancillary travel services.  

MakeMyTrip stock is down 2.53% year-to-date.

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