The 10-second takeaway
For the quarter ended Sep. 30 (Q3), priceline.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
priceline.com reported revenue of $1.71 billion. The 22 analysts polled by S&P Capital IQ wanted to see a top line of $1.65 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $1.45 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 $12.40. The 23 earnings estimates compiled by S&P Capital IQ averaged $11.82 per share. GAAP EPS of $11.66 for Q3 were 27% higher than the prior-year quarter's $9.17 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 81.8%, 610 basis points better than the prior-year quarter. Operating margin was 44.3%, 190 basis points better than the prior-year quarter. Net margin was 35.0%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $6.36.
Next year's average estimate for revenue is $5.21 billion. The average EPS estimate is $30.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,174 members out of 1,539 rating the stock outperform, and 365 members rating it underperform. Among 391 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 301 give priceline.com a green thumbs-up, and 90 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 $704.79.
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