Priceline up 4% thanks to strong quarterly earnings
Online Travel Agent (OTA) Priceline impressed investors with a strong set of quarterly earnings at the end of February. The company’s share price rocketed by 4% following the news, and has climbed further since. Priceline beat analysts’ expectations and smashed their own metrics from the year-ago quarter.
Revenue rose by more than 17% to $2.35 billion (analysts expected $2.32 billion), while adjusted net income was even more positive, rising over 30% to $711 million. Or, $14.21 per share. This is almost a third higher than it was in the fourth quarter of 2015, and it beat consensus estimates by over a dollar a share.
Investors react well to Priceline’s quarterly earnings
SOURCE: Yahoo Finance
Priceline showed a strong underlying business in the last quarter of 2016, with gross travel bookings hitting $15.1 billion – up a quarter from the same period a year ago. And although unfavourable currency effects from the dollar didn’t help Priceline in 4Q2016, they weren’t able to tarnish its results either.
Speaking both to the strength of the results and the company’s plans for the future, Priceline’s CEO Glenn Fogel said:
"(Priceline) recorded accelerating growth in room nights booked for the full year 2016 over 2015, which reflects the benefits of our scaled accommodations platform and strong execution by our global teams. We will continue to focus on growing our supply base to drive customer choice, innovating around the customer experience and investing efficiently in marketing to deliver profitable topline growth."
Dominion holds Priceline in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.