Priceline.com Inc. Earnings Cheat Sheet: Profit Up

S&P 500 (NYSE:SPY) component priceline.com Incorporated (NASDAQ:PCLN) reported net income above Wall Street’s expectations for the second quarter. Priceline.com is an online travel company that offers travel services, including hotel rooms, airline tickets, vacation packages, car rentals, cruises, and destination services.

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priceline.com Incorporated Earnings Cheat Sheet for the Second Quarter

Results: Net income for the entertainment company rose to $469.5 million ($9.43 per share) vs. $223 million ($4.41 per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 45% to $1.45 billion

Actual vs. Wall St. Expectations: PCLN reported adjusted net income of $9.95 per share. By that measure, the company beat the mean estimate of $9.02 per share. It beat the average revenue estimate of $1.42 billion.

Quoting Management: “The Group’s businesses all enjoyed a strong 3rd quarter,” said Jeffery H. Boyd, President and Chief Executive Officer of the Priceline Group. “Our global hotel nights grew by 47% over last year, reflecting moderate deceleration from the 2nd quarter. We believe our retail hotel businesses at Booking.com, Agoda and priceline.com continued to take meaningful share in their respective markets during the quarter, though our Name Your Own Price hotel business is challenged by increasing competition in the discount space.”

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to $4.86 per share from $4.42. The average estimate for the fiscal year is $21.65 per share, a rise from $19.06 ninety days ago.

Competitors to Watch: Orbitz Worldwide, Inc. (NYSE:OWW), Expedia, Inc. (NASDAQ:EXPE), Travelzoo Inc. (NASDAQ:TZOO), Universal Travel Group (NYSE:UTA), Ctrip.com Intl., Ltd. (NASDAQ:CTRP), Viad Corp (NYSE:VVI) and Interval Leisure Group, Inc. (NASDAQ:IILG).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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