If Eddie Money really did have two tickets to paradise, there's a fair chance that he scored them off of Priceline.com
A 38% spurt in gross travel bookings helped fuel a 27.5% spike in revenues. Pro forma profits more than doubled to $0.58 a share, well above the $0.41 per share that analysts were expecting on that basis.
Once again, Europe was kind to Priceline. Overseas success help compensate for the seemingly sleepy 12% gain in domestic gross travel bookings. Airline ticket sales growth was stagnant, but lodging and car rentals helped drive results higher.
These are interesting times for travel sites. Orbitz has been taken private. Sabre's
Priceline's future remains bright. The company is looking to achieve $4 billion in gross travel bookings this year. Priceline is also raising its guidance, in looking for adjusted profitability to come in between $2.60 to $2.90 per share. That represents a healthy advance from last year's $2.03 a share showing and the $2.53 per share that Wall Street is projecting.
Naturally, there's a lot that can rattle our faith in the travel industry. However, even in its brief corporate life, Priceline has made it through terrorism-related downfalls and economic shortcomings. The growth trajectory can always be delayed in the future. Investors have to accept that. Thankfully they can take comfort in knowing that Priceline knows exactly where it's going.
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Longtime Fool contributor Rick Munarriz still relies on the portals to get basic travel information, but then he runs off to see if better deals can be had directly with the provider. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.