Investors Won't Get a Discount on Shares as Priceline (PCLN) Tops Q4 Results
Priceline said revenue rose 35.5 percent year over year to $991 million and topped the Street’s consensus of $967.91 million. International revenue increased 62.7 percent to $610 million.
Gross profit totaled $725 million, a 51.5 percent increase from a year ago, while operating income rose 60.8 percent to $304 million.
Adjusted EBITDA for the quarter increased 54.3 percent year over year to $344 million.
GAAP net income came to $226 million, or $4.41 per diluted share, which compares to $135.7 million, or $2.66 per diluted share, in the same period a year ago. Non-GAAP net income was $276.8 million, a 58.1 percent increase versus the prior year. Non-GAAP net income was $5.37 per diluted share, compared to $3.40 per diluted share a year ago. Analysts on the Street had been expecting earnings of $5.05 per share.
Cash and cash equivalents almost doubled year over year as they totaled $632.84 million at the end of the quarter and $358.97 million a year ago.
“The Priceline Group experienced a strong 4th quarter for our travel reservation services,” said Jeffery Boyd, President and Chief Executive Officer of the Priceline Group. Looking forward, Mr. Boyd said, “The Priceline Group’s global hotel business continues to build share and is experiencing strong growth in Asia and other newer markets. While macroeconomic concerns persist, we will continue investing in growing the number of hotels and other accommodations around the world available on our websites, providing great content, building distribution and providing superior service to our customers.”
For the first quarter, the company sees GAAP net income of approximately $3.10 to $3.20 per diluted share and non-GAAP or $3.80 to $3.90, while the Street’s consensus calls for $3.72 per share. Revenue is expected to grow by 22-27 percent, incline with the Street’s consensus which is calling for a 25.2 percent increase. This implies a 33-38 percent increase in gross travel booking, 41-46 percent increase in international gross travel bookings, 10 percent increase in domestic gross travel bookings and a 40-45 percent increase in gross profit.