Is It Time To Buy Priceline Group Inc (PCLN)?
Priceline.com Incorporated (PCLN) Consumer Discretionary – Internet & Catalog Retail | Reports May 4, Before Market Opens
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- The Estimize consensus is calling for earnings per share $9.85 on $2.13 billion in revenue, 15 cents higher than Wall Street on the bottom line and $8 million on top
- Priceline recently partnered with TripAdvisor to feed Instant Booking with inventory
- Priceline operates in a heavily concentrated industry with names like Google and Expedia
- What are you expecting for PCLN? Get your estimate in here!
Lately the online travel industry has been one of the hottest industries much to the delight of Priceline and its peers. In the past 3 months, shares of Priceline skyrocketed 23% on indications of a reversing trend in the travel industry. Both Marriott and Expedia’s better than expected earnings reinforce that travel demand is rebounding. For Priceline, this sets the stage for another strong quarter, in what could be the 9th consecutive beat on the bottom line.
PCLN Estimize numbers
The Estimize consensus is calling for earnings per share $9.85 on $2.13 billion in revenue, 15 cents higher than Wall Street on the bottom line and $8 million on top. Both Estimize and Wall Street are high on Priceline this quarter, topping corporate guidance by nearly 50 cents. Compared to a year earlier, EPS is forecasted to grow 21% with revenue expected to climb 15%. Given Priceline’s track record, it’s not surprising that the stock is a frequent mover around earnings season. In the 30 days leading up to earnings, Priceline shares witness a 4% increase and cool down to 2% gains through earnings. Priceline’s fourth quarter was highlighted by significant gains on both the top and bottom line. This featured a 10% increase in gross travel bookings, 12% increase in international operations, and continued growth in Booking.com. Priceline has guided for double digit growth in almost all key metrics for the first quarter. Including a 20-27% increase in room nights booked, total gross travel booking growth of 12-19% and gross profits increasing 12-21%.
Unlike Expedia, Priceline has a far bigger position in international markets which could be hurt from unfavorable currency headwinds and a slowdown in China. On the brightside, the travel industry has not been materially impacted from recent terror attacks in Europe. That said, the industry is highly competitive across Expedia, Google, TripAdvisor, AirBnB and Priceline. The competitive landscape in online travel is just another roadblock for Priceline in the near future.
Do you think PCLN can beat estimates? There is still time to get your estimate in here!