Priceline.com Rockets Higher
Shares of Priceline.com (NASDAQ:PCLN) were sent sharply to the upside on Friday following strong quarterly results after the close on Thursday. The company announced strong revenue growth on the back of management changes and efficiency. The company’s Chief Executive Officer stated “Booking.com and Agoda posted solid third quarter results leading to 36 percent room night growth for the Group, the U.S. business of priceline.com showed positive momentum with accelerating bookings growth.” As the economic recovery comes fully underweight most of the travel space has benefited.
Priceline posted net income of nearly $833 million, or $15.72 a share, in the third quarter, compared with $596.6 million, or $11.66 a share, a year earlier. Excluding items, the company earned $920 million, or $17.30 per share, up from $638 million, or $12.40 a share in the year-earlier period. On the topline revenue increased to $2.27 billion from $1.71 billion a year ago. These results came in above analyst expectations. Analysts had expected Priceline to report a profit of $16.15 per share on $2.22 billion in revenue, according to a consensus estimates.
At the time of this writing, shares of the company were higher by 5 percent on the day to $1,074 per share. Year to date shares of the company are higher by a whopping 70 percent. Earlier in the year Priceline became the first S&P company to register the $1,000 price handle. Following that report a number of analyst upper their price targets to $1,200 per share. It seems likely there will be a number of analyst updates and guidance in the coming days. Until then, good luck trading the stock as volatility remains high.
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