PCLN 2009 Q1 Earnings

After the closing bell on Friday, one of the leading online travel service providers, Priceline.com Inc. (PCLN) revealed that the company’s profits during the 1Q jumped year-over-year, as overall booking increased during the period. In addition to the company’s recent performance, Priceline also offered guidance for the upcoming 2Q.

For the recent period, PCLN recorded net income of $25M, or $0.53 per share, in contrast to the previous year’s 1Q results of a profit of $13.8M, or $0.28 per share, an increase in earnings of more than 81%. Results were most impressive despite the global economic recession and recent outbreak of swine flu. Excluding other charges, such as depreciation and amortization, Priceline would have posted quarterly earnings of $1.09 per share.

As for the company’s overall sales totals, during the quarter Priceline booked gross revenues of $462.1M, up nearly 15% over last year’s tally of $403.2M. A key catalyst to increased sales was a jump in both merchant and agency revenues.

Looking further into the company’s sales performance, Priceline witnessed a jump of more than 10% in their total travel booking, coming in at $1.9B in revenues. Additionally, international sales helped bolster the company’s bottom-line as well, adding more than $114M in sales, up 10% year-over-year.

"Despite worldwide recessionary conditions, which continued to adversely impact overall travel demand and pricing, Priceline.com continued to gain market share, with hotel room nights up 36%, rental car days up 15% and airline ticket sales up 28%," acknowledged Jeffery Boyd, President and Chief Executive Officer of Priceline.com.

Analysts, on average, were anticipating that the online travel retailer would post quarterly profits of $0.91 per share on total sales figures of $440.8M. Analysts typically exclude certain one-time charges from their estimates.

Heading into the company’s 2Q, Priceline representatives have stated that they believe that the company should be able to post quarterly earnings between $1.65 and $1.75 per share, with year-over-year growth in revenues to range between 8% and 13%. Meanwhile, analysts, within the industry, are looking for Priceline to record 2Q profits of $1.65 per share on total sales of $541.76M.

Further commenting on the current economic condition, Jeffery Boyd stated, "Visibility for the worldwide economy and the travel industry in particular, remains cloudy for 2009. Macroeconomic conditions continue to impact travel demand, pricing and foreign currency exchange rates."

With the recent outbreak of swine flu that has reached nearly every corner of the globe, the company would not provide further guidance beyond the 2Q, and noted that the current projection for the upcoming quarter is subject to revision before the actual reporting date.

At the sound of the closing bell on Friday May 8, shares of PCLN concluded the session at $104.90, up more than 4% from the previous session’s closing price. By the conclusion of Monday’s trading day, Priceline shares were up nearly 4% by the close, adding $3.98 to finish the day at $108.88 per share.

During the course of a year, Priceline’s stock has traded within a wide range of prices. Last May, shares of PCLN reached a 52-week high of $144.34 before retreating in price shortly there after. As for the stock’s yearly low of $45.15, that price was established in late-October. Since hitting that low, Priceline’s stock has steadily increased in market value, gaining nearly 140% in just over six months.

By BetterTrades