Online travel services company Priceline.com Inc. (PCLN) said Wednesday its profit for the first quarter increased from last year, mainly on continued growth in international bookings. Earnings for the quarter topped Street estimates, while revenues fell shy of expectations.
Priceline also provided its outlook for the second quarter, with earnings indicated to come in below analysts' current estimates. The company's stock is currently down by 3.8 percent in after-hours trade on the Nasdaq.
Priceline.com said its first quarter revenue grew 28 percent from last year, helped mainly by revenue from international operations that jumped 58.5 percent.
Total gross travel bookings for the quarter surged about 44 percent from last year, with international bookings up 54 percent.
Priceline.com operates its business through sites such as Booking.com, priceline.com, and Agoda brand names. During the quarter, the company registered strong growth in travel reservation services, with room night reservations up 47 percent from last year. Airline ticket sales grew nearly 5 percent, and rental car days were up 40.6 percent.
CEO Jeffery Boyd said the company's international hotel businesses are well positioned for the peak travel season, with over 210,000 hotels at Booking.com, coupled with new product offerings.
Norwalk, Connecticut-based Priceline.com reported first-quarter net income to common shares of $182 million or $3.54 per share, compared to $105 million or $2.05 per share last year.
Excluding items, adjusted earnings for the quarter were $221 million or $4.28 per share, compared to $137 million or $2.66 per share a year ago.
On average, 21 analysts polled by Thomson Reuters expected earnings of $3.95 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter was $1.037 billion, compared to $809 million last year. Nineteen analysts had a consensus revenue estimate of $1.04 billion for the quarter.
Priceline.com expects second-quarter earnings of $6.34 to $6.54 per share, and adjusted earnings of $7.20 to $7.40 per share. Revenue for the quarter is expected to grow 18 to 23 percent from last year.
Analysts currently expect earnings of $7.38 per share and revenue of $1.39 billion for the second quarter.
The company expects second-quarter total gross travel bookings to grow 26 to 31 percent.
About a fortnight ago, rival Expedia Inc. (EXPE) reported a quarterly loss as higher costs offset double-digit growth in revenue. However, its earnings topped Street estimates.
PCLN closed Wednesday at $718.95, up $2.75 or 0.38%, on a volume of 2.5 million shares on the Nasdaq. In after hours, the stock dropped $26.75 or 3.72%. In the past year, the stock has traded in a range $411.26 - $774.96.
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