Priceline Offers Hefty Earnings Beat to Skeptical Investors

Michael Teague |

Priceline Offers Hefty Earnings Beat to Skeptical InvestorsOnline travel booking company Priceline.com, Inc (PCLN), one of the highest-priced stocks on the market, reported first quarter earnings during late trading on Thursday indicating that the company’s profits were $244 million, or $4.76 per share on revenue of $1.3 billion, compared to the prior year period during which the company earned $182 million, or $3.54 per share on revenue of $1.04 billion.

Adjusted earnings for Q1 were at $5.76 per share, and the numbers came in ahead of estimates that had Priceline earning $5.27 per share on revenue of $1.27 billion.

The company cited a 36.4 percent increase in booking across its different businesses, for a total of $9.2 billion. Hotel reservations were up 38 percent on the prior year period, with 63.2 million nights booked. Car rentals and international flights also contributed to growth during the quarter.

But CEO Jeffrey Boyd said that the company expects operating margins to shrink during the current quarter as a result of the company’s continued investments in global growth, economic uncertainty in various regions, and the dense competitiveness of the online travel business.

Priceline forecasted earnings for Q2 of between $8.87 and $9.45 per share, a range that is somewhat shy of the forecasted $9.59 per share. Meanwhile, though the company expects 15 to 22 percent revenue growth, between $1.53 billion and $1.62 billion, analysts estimated sales of $1.62 billion.

In late trading, the company’s shares had dipped over 3 percent to $714.50, but Friday should provide a more accurate picture of investor sentiment on the stock.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
PCLN The Priceline Group Inc. 1,456.76 -9.11 -0.62 321,210
SCHW Charles Schwab Corporation (The) 30.67 -0.57 -1.82 5,727,548

Comments

Emerging Growth

International Western Petroleum Inc

International Western Petroleum Inc is an exploration-stage oil and natural gas company. The Company is engaged in the acquisition, development, and exploration of crude oil and natural gas properties in…

Private Markets

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.

Lyft

Lyft matches drivers using their own personal vehicles with passengers who request rides through the smartphone app, and the passengers pay automatically through the app. When using Lyft, passengers have…