Priceline Posts Upbeat Q1 Earnings, But Issues Weak Q2 Forecast

Priceline Group Inc PCLN reported upbeat results for the first quarter, but the company issued a weak earnings forecast for the current quarter. The Norwalk, Connecticut-based company posted quarterly net earnings of $333.3 million, or $6.36 per share, compared to $331.2 million, or $6.25 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $8.12 per share. Its revenue surged to $1.84 billion from $1.64 billion. However, analysts were expecting a profit of $7.72 per share on revenue of $1.8 billion. The average estimate among 62 Estimize users was for earnings of $8.11 per share and revenue of $1.84 billion. Gross travel bookings rose 12 percent year-over-year to $13.8 billion in the quarter. International bookings climbed 14 percent, while domestic bookings rose 2.1 percent. Its gross profit for the quarter climbed 19 percent to $1.7 billion, while adjusted EBITDA rose 4 percent to $532 million. Darren Huston, President and CEO of The Priceline Group said, "Our brands executed well in the quarter, delivering strong performance on both the top and bottom line, while making smart and sustainable investments to support future growth. We will continue to focus relentlessly on execution at all of our brands and earn our customers' loyalty by delivering winning experiences across desktop, tablet and mobile platforms." For the second quarter, the company projects adjusted earnings of $10.95 to $11.75 per share, versus analysts' estimates of $13.10 per share. Priceline shares rose 0.46 percent to $1,270.00 in pre-market trading.