The 10-second takeaway
For the quarter ended June 30 (Q2), priceline.com missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
priceline.com logged revenue of $1.33 billion. The 19 analysts polled by S&P Capital IQ anticipated a top line of $1.35 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $7.85. The 21 earnings estimates compiled by S&P Capital IQ forecast $7.36 per share. GAAP EPS of $6.88 for Q2 were 37% higher than the prior-year quarter's $5.02 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 75.7%, 780 basis points better than the prior-year quarter. Operating margin was 34.5%, 510 basis points better than the prior-year quarter. Net margin was 26.6%, 340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.79 billion. On the bottom line, the average EPS estimate is $12.81.
Next year's average estimate for revenue is $5.43 billion. The average EPS estimate is $31.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,114 members out of 1,484 rating the stock outperform, and 370 members rating it underperform. Among 388 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 302 give priceline.com a green thumbs-up, and 86 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 $785.04.
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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. The Motley Fool owns shares of Priceline.com. Motley Fool newsletter services recommend 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.