The 10-second takeaway
For the quarter ended Dec. 31 (Q4), priceline.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Margins improved across the board.
priceline.com reported revenue of $990.8 million. The 19 analysts polled by S&P Capital IQ looked for revenue of $967.9 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $731.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $5.37. The 23 earnings estimates compiled by S&P Capital IQ forecast $5.01 per share on the same basis. GAAP EPS of $4.40 for Q4 were 65% higher than the prior-year quarter's $2.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.1%, 770 basis points better than the prior-year quarter. Operating margin was 30.7%, 460 basis points better than the prior-year quarter. Net margin was 22.8%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $3.72.
Next year's average estimate for revenue is $5.38 billion. The average EPS estimate is $29.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,009 members out of 1,368 rating the stock outperform, and 360 members rating it underperform. Among 424 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 326 give priceline.com a green thumbs-up, and 98 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 $620.04.
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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. Motley Fool newsletter services have recommended buying 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.