Q4 Preview: Priceline (PCLN) Should Produce Strong Results, No Negotiations Necessary
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priceline.com Inc. (Nasdaq: PCLN) is trading lower ahead of the company's fourth quarter 2010 earnings release, expected out after the market closes. The stock is down 3.2% this afternoon.
PCLN is expected to report EPS of $3.09 on revs of $734.86 million. Last quarter, the Norwalk, CT-based travel company posted EPS of $5.33 with revs of $1 billion, both topping consensus views looking for EPS of $4.97 and revs of $973.63 million. Looking back to Q409, priceline had EPS of $1.99, excluding one-time items, paired with revs of $541.8 million, both edging out the consensus views.
Shares gained 18.3% through the quarter, to $399.55 at the end of December. The stock is up 5.5% since then, and finished 2010 about 78.4% better.
A simple valuation puts priceline with a forward P/E of 23.9x FY11 EPS estimates, compared to 17.2x for Orbitz Worldwide (NYSE: OWW) and 9.8x at Expedia (Nasdaq: EXPE).
Data from Bloomberg has 16 analysts with a Buy on PCLN, 5 with a hold, and none suggesting to Sell. The analyst price target average is $487, with a high of $530 and low of $450. Shares have traded in a range of $464.47 - $173.32 over the last 52-weeks.
Summary
Priceline guided to Q410 EPS of $2.91 to $3.06, which was ahead of the consensus EPS if $2.68 at the time.
Deutsche Bank is looking for EPS of $3.11 and revs of $740 million. The firm is looking for solig results from PCLN amid tougher comps from an already recovering leisure travel market last year. DB is modeling for a 39% increase in gross bookings from Q409. A driver to upside could stem from better occupancy rates in Europe (which averaged 66% through the quarter versus 60% last year).
Looking forward, DB is expecting solid guidance from improving European conditions as well as tailwinds from Asia and LatAm. They are looking for Q111 EPS of $2.37 on revs of $720 million and FY11 EPS of $18.48 with revs of $3.903 billion.
Deutsche has a Buy on the shares with a price target of $490.
When talking about priceline, its easy to make a comparison to Expedia. EXPE came in with EPS of $0.32 on revs of $808.4 million, versus the consensus EPS of $0.32 and revs of $802.31 million. Bookings for the company increased 14% (or 15% excluding FX impact). Of that, domestic bookings jumped 13% and international increased 16% (or 19% excluding FX impact). OIBA as a percentage of revs fell 1.7 points to 22%, which they cited cost of revs and marketing expenses.
priceline.com is expected to release their Q410 earnings on Wednesday, February 23, 2011, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
PCLN is expected to report EPS of $3.09 on revs of $734.86 million. Last quarter, the Norwalk, CT-based travel company posted EPS of $5.33 with revs of $1 billion, both topping consensus views looking for EPS of $4.97 and revs of $973.63 million. Looking back to Q409, priceline had EPS of $1.99, excluding one-time items, paired with revs of $541.8 million, both edging out the consensus views.
Shares gained 18.3% through the quarter, to $399.55 at the end of December. The stock is up 5.5% since then, and finished 2010 about 78.4% better.
A simple valuation puts priceline with a forward P/E of 23.9x FY11 EPS estimates, compared to 17.2x for Orbitz Worldwide (NYSE: OWW) and 9.8x at Expedia (Nasdaq: EXPE).
Data from Bloomberg has 16 analysts with a Buy on PCLN, 5 with a hold, and none suggesting to Sell. The analyst price target average is $487, with a high of $530 and low of $450. Shares have traded in a range of $464.47 - $173.32 over the last 52-weeks.
Summary
Priceline guided to Q410 EPS of $2.91 to $3.06, which was ahead of the consensus EPS if $2.68 at the time.
Deutsche Bank is looking for EPS of $3.11 and revs of $740 million. The firm is looking for solig results from PCLN amid tougher comps from an already recovering leisure travel market last year. DB is modeling for a 39% increase in gross bookings from Q409. A driver to upside could stem from better occupancy rates in Europe (which averaged 66% through the quarter versus 60% last year).
Looking forward, DB is expecting solid guidance from improving European conditions as well as tailwinds from Asia and LatAm. They are looking for Q111 EPS of $2.37 on revs of $720 million and FY11 EPS of $18.48 with revs of $3.903 billion.
Deutsche has a Buy on the shares with a price target of $490.
When talking about priceline, its easy to make a comparison to Expedia. EXPE came in with EPS of $0.32 on revs of $808.4 million, versus the consensus EPS of $0.32 and revs of $802.31 million. Bookings for the company increased 14% (or 15% excluding FX impact). Of that, domestic bookings jumped 13% and international increased 16% (or 19% excluding FX impact). OIBA as a percentage of revs fell 1.7 points to 22%, which they cited cost of revs and marketing expenses.
priceline.com is expected to release their Q410 earnings on Wednesday, February 23, 2011, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
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