The Priceline Group Inc, T-Mobile US Inc Beat Earnings Estimates

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T-Mobile and The Priceline Group released their fourth quarter earnings reports before opening bell this morning, and both posted healthy beats over consensus. Priceline shares soared after the company posted adjusted earnings of $12.63 per share and $2 billion in revenues, against Wall Street’s estimates of $11.81 per share and $2 billion. In last year’s fourth quarter, Priceline reported revenue of $1.84 billion and adjusted earnings of $10.85 per share.

T-Mobile posted adjusted earnings of 34 cents per share and $8.25 billion in revenue, against the consensus estimates of 15 cents per share and $8.2 billion.

Priceline shares soar despite weak earnings guide

Priceline’s reported earnings were $10 per share, compared to $8.56 per share in the year-ago quarter. Fourth quarter gross travel bookings climbed 13% year over year to $12 billion, while adjusted EBITDA climbed 11% to $790 million. Room nights booked climbed 27% to 99 million nights. International bookings accelerated on a constant currency basis to 29%.

Priceline management expects first quarter gross travel bookings to climb by between 12% and 19% and revenue to climb by between 9% and 16%. They project earnings of $9 to $9.60 per share for the quarter, which is light against the consensus of $9.61 per share. Management projects a 20% to 27% increase in room nights booked and adjusted EBITDA of $580 million to $620 million.

Priceline shares surged in premarket trading, climbing by as much as 9.39% to $1,215.

T-Mobile shares also jump on solid results

T-Mobile reported 2.1 million net customer adds during the fourth quarter and average revenue per postpaid user of $48.05, a slight year over year decline from $48.26. The branded postpaid phone churn rate fell 27 basis points to 1.46%. Service revenues climbed 11.7%, while adjusted EBITDA rose 30.2% to $2.3 billion. Total devices sold or leased amounted to 10.8 million, of which 10 million were smartphones.

For this year, T-Mobile is targeting 2.4 million to 3.4 million branded postpaid net customer adds and $9.1 million to $9.7 million in adjusted EBITDA.

Shares of T-Mobile rose by as much as 4.25% to $38 in premarket trading this morning.

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