Priceline.com Inc. (PCLN) Stock Spikes
Shares of Priceline.com (PCLN, 45.93) traded sharply higher on Tuesday after the online travel company posted higher fourth quarter earnings, helped by strong European growth, and issued a full-year outlook that is above analysts' estimates. The stock climbed nearly 7% in pre-market activity.
Priceline shares have more than doubled in the past year, and are sitting in new annual high territory. Considering the company's latest results, which exceeded expectations for the third consecutive quarter, Priceline remains well-positioned to benefit from a domestic recovery as well as greater exposure to the faster-growing European markets. At the current price level, we believe the stock is fairly priced and still presents a compelling investment opportunity.
Fourth quarter net income grew to $13.2 million, or $0.32 per share, compared with $3.8 million, or $0.09 per share, in the year ago period. Excluding stock option expense and amortization charges, the company earned $0.58 per share, handily beating analysts' expectations of $0.40 per share, according to Reuters Estimates.
Revenue grew 27.6% year/year to $260.1 million, also beating the consensus estimate of $235.9 million, led by strong growth in its European brand, Booking.com, and high retail travel prices over the holidays. Gross travel bookings in the quarter, which include the total dollar value of all travel services purchased by consumers, increased 38.8% to $742.4 million. Booking.com recorded gross bookings of $319.1 million, representing a year/year increase of 101%, while domestic gross bookings were up a more modest 12%.
Looking to the first quarter, Priceline projected adjusted earnings of $0.22 to $0.30 per share, with overall bookings expected to rise about 25% to 30%. Analysts on average are looking for first quarter earnings of $0.30 per share. For the full year, the company expects earnings in a range of $2.60 to $2.90 per share, above the consensus estimate of $2.54 per share.
--Richard Jahnke, Briefing.com
Priceline shares have more than doubled in the past year, and are sitting in new annual high territory. Considering the company's latest results, which exceeded expectations for the third consecutive quarter, Priceline remains well-positioned to benefit from a domestic recovery as well as greater exposure to the faster-growing European markets. At the current price level, we believe the stock is fairly priced and still presents a compelling investment opportunity.
Fourth quarter net income grew to $13.2 million, or $0.32 per share, compared with $3.8 million, or $0.09 per share, in the year ago period. Excluding stock option expense and amortization charges, the company earned $0.58 per share, handily beating analysts' expectations of $0.40 per share, according to Reuters Estimates.
Revenue grew 27.6% year/year to $260.1 million, also beating the consensus estimate of $235.9 million, led by strong growth in its European brand, Booking.com, and high retail travel prices over the holidays. Gross travel bookings in the quarter, which include the total dollar value of all travel services purchased by consumers, increased 38.8% to $742.4 million. Booking.com recorded gross bookings of $319.1 million, representing a year/year increase of 101%, while domestic gross bookings were up a more modest 12%.
Looking to the first quarter, Priceline projected adjusted earnings of $0.22 to $0.30 per share, with overall bookings expected to rise about 25% to 30%. Analysts on average are looking for first quarter earnings of $0.30 per share. For the full year, the company expects earnings in a range of $2.60 to $2.90 per share, above the consensus estimate of $2.54 per share.
--Richard Jahnke, Briefing.com
Labels: PCLN, Priceline.com Inc.
posted by Stock Administrator @ 1:26 PM
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