Earnings Cheat Sheet: Priceline.com Conquers Estimates and Shoots to New Highs

Priceline.com Incorporated (PCLN) is an online travel company that operates primarily in the United States, Europe, and Asia. They facilitate travel by providing various travel-related items such as airline tickets, hotel bookings, car rentals, parking, event tickets, and tours. Priceline.com reported their third quarter results yesterday and blew through estimates for the 18th quarter consecutively with a 57% earnings increase.

Earnings: Earnings increased 57% to $5.33 a share ($272.3 million) from $3.45 a share ($173.3 million) last year.

Revenue: Revenue increased 37% to $1 billion from $730.66 million last year.

Actual versus Wall Street Expectations: Priceline’s earnings per share of $5.33 per share easily surpassed estimates of $4.97 per share. Revenue also beat at $1 billion from $973.6 million expected.

Notable Stats: International operations contributed revenues in the 3rd quarter of $531.0 million, a 67.6% increase versus a year ago.

The Group’s gross profit for the 3rd quarter was $666.2 million, a 53.5% increase from the prior year.

International operations contributed gross profit in the 3rd quarter of $529.8 million, a 67.6% increase versus a year ago.

Did You Hear That? “We are pleased by the Group’s strong performance in the 3rd quarter” said Jeffery H. Boyd, President and CEO.  “Increased gross travel bookings were driven primarily by our worldwide hotel business, which had a 54% increase in room nights booked.  Transaction growth in core Western European and North American markets, ADR improvement and an increasing contribution from high growth new markets led to a sequential increase in the Group’s gross travel bookings growth.”

Commentary: Shares of Priceline.com (PCLN) have almost doubled in value since the beginning of the year and it is currently trading above its 50 DMA and 200 DMA. PCLN has been consistently posting new highs and as it stands, it sees little resistance. Today, shares gapped up at the open and are trading up 9% on about double the average volume.

Disclosure: No positions in PCLN