The 10-second takeaway
For the quarter ended Dec. 31 (Q4), priceline.com met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
priceline.com notched revenue of $1.19 billion. The 23 analysts polled by S&P Capital IQ looked for a top line of $1.19 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $990.8 million.
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 $6.77. The 26 earnings estimates compiled by S&P Capital IQ forecast $6.50 per share. Non-GAAP EPS of $6.77 for Q4 were 26% higher than the prior-year quarter's $5.37 per share. GAAP EPS of $5.63 for Q4 were 28% higher than the prior-year quarter's $4.40 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 78.9%, 580 basis points better than the prior-year quarter. Operating margin was 31.4%, 70 basis points better than the prior-year quarter. Net margin was 24.2%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $5.16.
Next year's average estimate for revenue is $6.31 billion. The average EPS estimate is $37.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,250 members out of 1,613 rating the stock outperform, and 363 members rating it underperform. Among 412 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 331 give priceline.com a green thumbs-up, and 81 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 $741.40.
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