Priceline.com Jumps On Q2 Beat (PCLN)

Priceline.com (NASDAQ: PCLN) (NASDAQ: PCLN) released its fiscal second-quarter earnings results after the closing bell on Thursday.

The company reported both earnings per share and revenue that came in ahead of Wall Street estimates. Priceline also provided earnings guidance for the fiscal third-quarter in the range of current consensus. In late trade, the stock was last up around 5 percent to $981.90.

Management Commentary

“The Group's international and domestic businesses performed well in the quarter as the summer travel season got off to a strong start for our brands,” said Jeffery H. Boyd, Chairman and CEO of the Priceline Group. “We are particularly pleased by the Group's steady hotel room night growth and improving rental car unit growth, and with the growing momentum at the U.S. business of priceline.com.”

Looking forward, Mr. Boyd said, "Our brands are showing solid growth and we intend to continue to invest in content expansion, new market penetration and distribution given the opportunity we have to build our brands. We are also pleased to welcome KAYAK to the Group and are encouraged by the early returns on our work together.”

Fiscal Q2 Financial Results

Priceline reported net income of $437 million, or $8.39 per share, compared to $352 million or $6.88 per share, last year. On an adjusted basis, net income was $508 million or $9.70 per share. This easily topped analysts' consensus EPS estimates of $9.36.

Total revenue in the quarter was $1.68 billion from $1.33 billion in last year's second-quarter. This was slightly ahead of Wall Street consensus revenue expectations of $1.66 billion.

Q3 Earnings Guidance

Looking ahead, Priceline guided for Q3 GAAP net income per share of $13.75 to $14.75. Non-GAAP EPS is expected between $15.30 and $16.30. Currently, analysts have consensus EPS estimates of $15.86 for the fiscal third-quarter.

Priceline also guided for a year-over-year increase in revenue of between 23 percent and 30 percent. Currently, analysts anticipate the company will report revenue of $2.22 billion in the fiscal third-quarter.

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