priceline.com
The 10-second takeaway
For the quarter ended March 31 (Q1), priceline.com beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Revenue details
priceline.com logged revenue of $1.30 billion. The 24 analysts polled by S&P Capital IQ expected to see revenue of $1.28 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.04 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $5.76. The 26 earnings estimates compiled by S&P Capital IQ averaged $5.29 per share. Non-GAAP EPS of $5.76 for Q1 were 35% higher than the prior-year quarter's $4.28 per share. GAAP EPS of $4.76 for Q1 were 34% higher than the prior-year quarter's $3.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 77.5%, 580 basis points better than the prior-year quarter. Operating margin was 23.8%, 20 basis points better than the prior-year quarter. Net margin was 18.8%, 130 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $9.56.
Next year's average estimate for revenue is $6.50 billion. The average EPS estimate is $38.85.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,287 members out of 1,645 rating the stock outperform, and 358 members rating it underperform. Among 440 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 364 give priceline.com a green thumbs-up, and 76 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 $814.43.
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