Priceline (PCLN) Earnings: Higher Than William Shatner

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Priceline (PCLN) took a big run ahead of earnings. The stock rose 5.5% to $65.09.

Analysts polled by Thomson Financial expect pro forma income of $.89 on sales of $354.3 million.

The numbers were stronger than expected. Priceline.com had GAAP revenues in the 2nd quarter of $355.9 million, a 15.7% increase over a year ago. The company had Priceline.com had GAAP net income of $34.6 million or $0.79 per diluted share, which compares to a $12.5 million or $0.28 per diluted share in the same period a year ago.

"Priceline.com’s earnings performance in the second quarter exceeded our previous expectations for both the international and domestic businesses," said priceline.com President and Chief Executive Officer Jeffery H. Boyd.

Priceline.com said it was targeting the following for 3rd quarter 2007:

  • Year-over-year increases in overall gross travel bookings of approximately 43% to 46%.
  • Year-over-year increases in gross travel bookings from Booking.com of approximately 85% to 90%.
  • Year-over-year increase in pro forma revenue of approximately 20% to 25%.
  • Year-over-year increase in pro forma gross profit of approximately 50% to 54%.
  • Pro forma net income of between $1.21 and $1.31 per diluted share.

In view of the company’s stronger than expected performance in the 2nd quarter 2007, priceline.com revised its full year guidance as follows:

  • Consolidated gross travel bookings of $4.50 to $4.65 billion
  • International gross travel bookings of $2.45 to $2.55 billion
  • Pro forma net income of between $3.50 and $3.65 per diluted share

The shares rose 11% after hours to $72.10 which is above the 52-week high.

God bless William Shatner

Douglas A. McIntyre