Priceline Beats On Profit And Revenue, Boosted By 38.8% Increase In Bookings

Feb 20 2014, 5:23pm CST | by

Priceline Beats On Profit And Revenue, Boosted By 38.8% Increase In Bookings
Photo Credit: Forbes Business

Consumers’ wanderlust is benefiting the Priceline Group: the company, which owns travel booking sites Booking.com, priceline.com, Kayak.com, rentalcars.com and agoda.com, reported fourth quarter 2013 earnings results Thursday afternoon that were well above Street expectations on both profit and revenue thanks largely to a near-40% increase in bookings for the quarter.

Priceline reported fourth quarter revenue of $1.54 billion, up from the $1.19 billion reported for the same quarter in 2012 and beating Street estimates of $1.52 billion. Fourth quarter net income came in at $471 million, a 35.2% increase compared to the prior-year period and resulting in profit of $8.85 per share, up significantly from the $6.77 reported in 2012 and beating the analyst consensus of $8.31 by 54 cents. Bookings for the quarter increased 38.8% to $9.1 billion and were particularly helped by the company’s international operations, which saw bookings increase 41.9% to $1.3 billion.

These results bring Priceline’s full-year revenue to $6.8 billion, up from $5.3 billion in 2012. Full-year net income was $2.2 billion, a 36.3% increase over 2012 and resulting in earnings of $41.72 per diluted share, up from $31.28 per share in 2012. On a full year basis, gross travel bookings brought in $39.2 billion, a 37.7% increase compared to 2012.

“The Priceline Group finished 2013 with a strong 4th quarter, reporting accelerating hotel, rental car and airline ticket unit growth,” Darren Huston, Priceline president and CEO, said in a statement Thursday afternoon. “The Group’s full year room night reservations of 271 million grew by 37%, as compared to 40% in 2012, reflecting only modest deceleration on a large scale business.”

Looking ahead to 2014, Priceline provided first quarter 2014 guidance that was likely disappointing to many investors, but Priceline executives attributed the conservative outlook to Easter’s later date this year — April 20, 2014 — which means that any bookings that close for Easter weekend will count towards the second quarter of 2014, not the first. (For comparison, Easter fell on March 31 in 2013.) Priceline said it expects first quarter travel bookings to increase between 23% and 33%, with first quarter net income per share coming somewhere between $6.35 and $6.85. Analysts, meanwhile, expect first quarter earnings of $7.27 per share.

Following news of the earnings beat, shares of Priceline initially jumped 2% in after-hours trading, and then yoyoed up and down by a percentage point or less as investors processed the lower-than-expected first quarter outlook. Shares of the travel booking company are currently up 1.8%; year-over-year, the stock has seen 85% growth.

Related from Forbes:

2014 Spring Travel Strategies

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

NASA's Orion all set for Dec 4 test flight
Washington, Nov 29 (IANS) Designed to carry astronauts to deep space destinations like Mars, NASA's Orion spacecraft is all set to blast off for its first test flight Dec 4.
 
 
1.1 million HIV infections in children prevented: UNICEF
United Nations, Nov 29 (IANS) An estimated 1.1 million human immunodeficiency virus (HIV) infections among children under the age of 15 have been prevented between 2005 and 2013.
 
 
Countries along Silk Road discuss co-operation
Bishkek, Nov 29 (IANS) Governmental representatives and experts from more than 10 countries exchanged their practical views in the international conference on "Common Development and Prosperity of the States along the Silk Road" held in the capital city of Kyrgyzstan.
 
 
Albania opens Communist-era nuclear bunker to public
Tirana, Nov 29 (IANS/EFE) The Albanian government has opened to the public the country's biggest Communist-era nuclear bunker, a secret symbol of the 40-year Cold War and the extravagances of the Communist regime.
 
 
 

Latest from the Network

Abigail Breslin slams ex Michael Clifford
Abigail Breslin has slammed her ex, Michael Clifford. The 'My Sister's Keeper' actress went on a date with the 5 Seconds of Summer guitarist last year but it seems as though it didn't end well after she released a song...
Read more on Celebrity Balla
 
Kevin Bacon to sizzle in Jungle
Kevin Bacon is to star in 'Jungle'. The 56-year-old actor will appear in the survival drama, which is based on the true story of Yossi Ghinsberg, an adventurer who found himself lost in the Amazon rainforest for three...
Read more on Movie Balla
 
Mickey Rourke to return to boxing at 62
Mickey Rourke will return to boxing aged 62. The actor will come out of retirement and step into the ring tonight (11.28.14) for the first time in 20 years as he competes against 29-year-old Elliot Seymour. He said: ''...
Read more on Celebrity Balla
 
Kristen Stewart: Actors are isolated
Kristen Stewart claims actors become ''isolated'' because of their fame. The 24-year-old actress has become one of the biggest movie stars in the world following her portrayal of Bella Swan in the 'Twilight' franchise...
Read more on Celebrity Balla
 
Burt Reynolds to sell memorabilia
Burt Reynolds is selling over 600 personal items to stave off bankruptcy. The 78-year-old Hollywood star is reportedly struggling financially so will see awards, cars and costumes go under the hammer in Las Vegas next...
Read more on Celebrity Balla
 
Eddie Redmayne's fear of failure
Eddie Redmayne has a fear of failure. The 'Theory of Everything' star has admitted that like fellow actor, Rachel Weisz, he worries about ever getting hired again. He said: ''I was reading an interview with Rachel Weisz...
Read more on Celebrity Balla
 
Where to Find Black Friday Car Deals
The Black Friday Car Sales events have gained traction over the past couple of years. This year several major brands ran nation-wide commercials announcing their Car Black Friday deals. In the beginning it was creative...
Read more on Auto Balla
 
Indian Aces win inaugural IPTL tie
Manila, Nov 28 (IANS) The much-awaited inaugural International Premier Tennis League (IPTL) got off to a flying start with the Indian Aces notching an impressive 26-16 first victory against the Singapore Slammers at...
Read more on Sport Balla
 
Australian navy's largest ship commissioned
Canberra, Nov 28 (IANS) HMAS Canberra, a 27,000-tonne landing helicopter dock (LHD), was commissioned Friday, providing the Royal Australian Navy (RAN) with one of the world's most capable and sophisticated amphibious...
Read more on Politics Balla
 
Sindhu, Prannoy enter Macau Open semis
Macau, Nov 28 (IANS) Indian shuttlers P.V. Sindhu and H.S. Prannoy came out with contrasting wins to enter their respective semi-finals at the $120,000 Macau Open Grand Prix Gold here Friday. While defending champion...
Read more on Sport Balla