Online Travel Group Priceline International Revenue Surges But Guides Lower

Online travel group Priceline reported better than expected third quarter earnings Monday with a sharp rise in overall bookings, in particular international operations. However $PCLN fell over 6% in after hours with softer guidance than expected.

Online travel group Priceline reported better than expected third quarter earnings Monday with a sharp rise in overall bookings, in particular international operations. However $PCLN fell over 6% in after hours with softer guidance than expected.

Priceline

Earnings: 3Q17 earnings of $1.7Bil or $34.43 per share, exceeding expectation of $34.31 on venue up 20% to $4.37 billion which also beat expectations of $4.34 billion The total value of bookings was $22Bil, up 18% compared to last year.

Reaction: The Priceline Group Inc NASDAQ: PCLN · $1,771.99 ▼ 131.01 (6.88%)

“The Priceline Group delivered solid growth and operating results during our seasonally busy third quarter,” said Glenn Fogel, Chief Executive Officer of The Priceline Group.  “Globally, our accommodation business booked 178 million room nights in the third quarter, up 19% over the same period last year.  Booking.com showed continued momentum with approximately 1.5 million properties on its platform, up 41% over last year.  This represents 26.9 million potentially bookable rooms, which we believe to be the largest, and most diverse, selection of instantly bookable accommodations in the world.” 

Guidance:

Looking forward, Mr. Fogel said, “As we look to the fourth quarter and beyond, we will continue to focus on making the right investments across our brands – in people, systems, and marketing – to continue to grow our business for the long term.”

Priceline projected adjusted earnings in the fourth quarter to be in the range of $13.40 to $14, lower than the consensus estimate of $15.62. $PCLN it expects to record GAAP profit of $625-$655MM, or $12.6 per share to $13.2 per share, in 4Q17. Room Nights Booked is estimated to grow in the range of 8-13% YoY in fourth quarter, and gross travel bookings in the range of 9.5% to 14.5%.

Preview of Bite Image

About The Priceline Group

The Priceline Group (NASDAQ: $PCLN) is the world leader in online travel and related services, provided to customers and partners in over 220 countries through six primary brands – Booking.com, priceline.com, KAYAK, agoda.com, Rentalcars.com, and OpenTable.  

Source: Priceline: http://files.shareholder.com/downloads/PCLN/5519181760x0x962889/085b23fa-7d11-46ba-85fc-da6991036641/PCLN_Group_Earnings_Release_Q317.pdf

Live From The Pit

Leave a Reply

Your email address will not be published. Required fields are marked *