Even though PCLN has been surging for most of the last 18 months, shares got an extra boost on Nov 10 after the company reported strong Q3 results that handily beat expectations.
Third-Quarter Results
Revenue for the period was up 47% from last year to $4 billion. Earnings also came in strong at $4.97, 5% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 8.6% over the last four quarters.
The strong results were driven by big international gains, where revenue was up 67% from last year to $531 million. Priceline also benefited from impressive results in hotel offerings, where room nights booked was up 54% from last year. Rental car units were also strong, showing 97% growth in days booked.
Balance Sheet Strong
Priceline also continues to maintain a strong balance sheet, with cash and equivalents of $534 with against $471 million in debt.
Estimates
We saw some pretty bullish movement in estimates off the good quarter, with the current year adding 61 cents to $12.21 and the next year adding $1.87 to $16.47, a bullish 35% growth projection.
Valuation
With a forward P/E of 34X, PCLN trades at a premium to the industry average of 16X.
2-Year Chart
On the chart, PCLN recently surged higher to a new all-time high at $428.10 on the good quarter. Look for support from the trend line and the previous breakout area above $390 on any weakness, take a look below.
Read the Sep 30 PCLN article here
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
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