Priceline.com Inc. (PCLN) Thursday reported a near 36 percent jump in first-quarter profit, as the online travel company gained from strong international bookings for hotel stays, with results topping Wall Street estimates.
Nonetheless, the company detailed a weak outlook for the second quarter, due mostly to the crisis in the eurozone that has wreaked havoc on countries such as Greece, Spain and Portugal, among others.
Priceline, which competes with Expedia Inc. (EXPE), also is concerned about the intense rivalry that permeates the sector. Following the announcement of results, Priceline shares fell 3 percent in after-hours trade on the Nasdaq.
Priceline helps users obtain discount rates for travel-related purchases such as airline tickets and hotel stays. Its four primary brands include Booking.com, priceline.com, Agoda.com and rentalcars.com.
Total gross travel bookings in the quarter grew 36.4 percent from last year, with international bookings up 42.8 percent.
Priceline saw strong growth in travel reservation services. Room night reservations climbed 37.7 percent from last year, while rental car days jumped 43.3 percent and airline ticket sales edged up 1.4 percent.
The Norwalk, Connecticut-based company posted quarterly revenues of $1.3 billion, compared with $1.04 billion last year. On average, 23 analysts polled by Thomson Reuters estimated revenues of $1.28 billion for the quarter.
Net income to common stock for the quarter was $244 million or $4.76 per share, up from $182 million or $3.54 per share a year ago.
Excluding items, adjusted earnings for the quarter were $297 million or $5.76 per share, compared with $221 million or $4.28 per share a year ago.
Analysts had a consensus earnings estimate of $5.27 per share for the quarter. Analysts' estimates typically exclude special items.
Increased online advertising costs mainly led to an escalation in expenses, with total expenses rising to $700 million from $501 million a year ago.
For the second quarter, Priceline estimates net earnings of $7.87 to $8.45 per share and adjusted earnings of $8.87 to $9.45 per share. Revenues are expected to grow 15 to 22 percent, compared with $1.33 billion in the year-ago quarter.
Analysts currently expect earnings of $9.58 per share on revenues of $1.64 billion for the second quarter.
Priceline has obtained all regulatory approvals for its acquisition of Kayak Software Corp. (KYAK) and expects to close the deal later this month. In November, Priceline agreed to buy Kayak Software in a $1.8 billion cash and stock deal. Kayak, which went public in July 2012, is a travel research site that allows people to easily compare hundreds of travel sites at once when searching for flights, hotels and rental cars.
Earlier today, smaller rival Orbitz Worldwide Inc. (OWW) said it returned to a profit in its first quarter, helped mainly by a hefty tax benefit. The company also provided impressive revenue outlook for the second quarter, and its stock made solid gains.
Priceline's stock closed Thursday at $737.50, up 0.30%, on a volume of 0.7 million shares. In after-hours, the stock dropped $24.00 or 3.25%. In the past year, the stock has traded in a range of $553.42 - $745.24.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.