Priceline Q2 Profit Tops Views, Shares Surge

Shares of Priceline Group Inc PCLN jumped over 6 percent in pre-market trading after the company reported better-than-expected earnings for the second quarter. The Norwalk, Connecticut-based company posted quarterly net income of $517 million, or $9.94 per share, compared to $576.5 million, or $10.89 per share, in the year-ago period. On an adjusted basis, the company's earnings came in at $12.45 per share. Its revenue climbed to $2.28 billion from $2.12 billion. Analysts were expecting earnings of $11.98 per share on revenue of $2.27 billion. The average estimate among 60 Estimize users was for earnings of $12.41 per share and revenue of $2.30 billion. Its gross travel bookings climbed 11 percent year-over-year to $15.0 billion. International bookings rose to $13.1 billion, while domestic bookings rose to $1.87 billion. Its gross profit rose 11 percent to $2.1 billion, while adjusted EBITDA fell 1 percent to $805 million. Online advertising costs increased 20.5 percent to $770.8 million for the latest quarter. "The Priceline Group performed well in the quarter as the summer travel season got off to a strong start with a second consecutive quarter of accelerating growth in hotel room nights and rental car days booked," said Darren Huston, President and CEO of The Priceline Group. "Globally, our accommodation business booked 113 million room nights in the second quarter, up 26% over the same period last year. International gross bookings growth accelerated to 30% on a constant currency basis and the Group's total gross profit grew by about 26% on a constant currency basis." For the current quarter, Priceline projects earnings of $22.95 to $24.45 per share, versus analysts' estimates of $23.32 per share. The company expects revenue growth of 1 percent to 8 percent year-over-year. Priceline shares climbed 6.47 percent to $1,367.00 in pre-market trading.