priceline.com Beats on Both Top and Bottom Lines

priceline.com (Nasdaq: PCLN  ) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), priceline.com beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
priceline.com logged revenue of $1.30 billion. The 24 analysts polled by S&P Capital IQ expected to see revenue of $1.28 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.04 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $5.76. The 26 earnings estimates compiled by S&P Capital IQ averaged $5.29 per share. Non-GAAP EPS of $5.76 for Q1 were 35% higher than the prior-year quarter's $4.28 per share. GAAP EPS of $4.76 for Q1 were 34% higher than the prior-year quarter's $3.54 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 77.5%, 580 basis points better than the prior-year quarter. Operating margin was 23.8%, 20 basis points better than the prior-year quarter. Net margin was 18.8%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $9.56.

Next year's average estimate for revenue is $6.50 billion. The average EPS estimate is $38.85.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,287 members out of 1,645 rating the stock outperform, and 358 members rating it underperform. Among 440 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 364 give priceline.com a green thumbs-up, and 76 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on priceline.com is outperform, with an average price target of $814.43.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Priceline.com. The Motley Fool owns shares of Priceline.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On May 10, 2013, at 7:16 PM, IRunMan wrote:

    Somebody go into Seth Jayson's office and see if there is a body in his chair. This article is equal to the computerized Narrative Science posts on Forbes' website. I don't have a subscription service to TMF to read articles that I could write a script to replicate.

    Please fire Seth Jayson.

    If not, please hire me, I'll write a program that can do his job and I'll only ask for half the salary. Deal?

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9/16/2014 4:00 PM
PCLN $1172.92 Up +19.33 +1.68%
Priceline Group CAPS Rating: ***

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