The Priceline Group (PCLN) Tops Q2 EPS by 47c
(Updated - August 5, 2015 11:50 AM EDT)
The Priceline Group (NASDAQ: PCLN) reported Q2 EPS of $12.45, $0.47 better than the analyst estimate of $11.98. Revenue for the quarter came in at $2.28 billion versus the consensus of $2.27 billion
"The Priceline Group performed well in the quarter as the summer travel season got off to a strong start with a second consecutive quarter of accelerating growth in hotel room nights and rental car days booked," said Darren Huston, President and CEO of The Priceline Group. "Globally, our accommodation business booked 113 million room nights in the second quarter, up 26% over the same period last year. International gross bookings growth accelerated to 30% on a constant currency basis and the Group's total gross profit grew by about 26% on a constant currency basis."
Looking forward to the third quarter, Mr. Huston said, "We believe we are well set up to deliver the largest quarter in our company's history. Our teams are ready and are intensely focused on delivering the best selection, competitive pricing, and the best online and offline experience to our customers around the world."
Guidance:
Priceline sees Q3 EPS of $22.95 t o $24.45, versus the consensus of $23.32, and expects Q3 adjusted EBITDA of approximately $1.425 to $1.525 billion.
RBC Capital analyst Mark Mahaney was positive on the results as organic growth trends remain robust. The company is still generating 25%+ International Gross Bookings, Gross Profit, and Hotel Room Night growth, the analyst highlighted. The analyst also sees at least two very substantial new growth opportunities emerging - Vacation Rentals, China Outbound, and now perhaps Latin America. The analyst raised his price target to $1,600 from $1,400 and reiterated an Outperform rating following the numbers.
For earnings history and earnings-related data on The Priceline Group (PCLN) click here.