priceline.com Beats Analyst Estimates on EPS

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priceline.com (NAS: PCLN) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), priceline.com met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.


Margins grew across the board.

Revenue details
priceline.com logged revenue of $1.04 billion. The 21 analysts polled by S&P Capital IQ predicted revenue of $1.04 billion on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $809.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $4.28. The 24 earnings estimates compiled by S&P Capital IQ forecast $3.98 per share. GAAP EPS of $3.54 for Q1 were 73% higher than the prior-year quarter's $2.05 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 71.7%, 920 basis points better than the prior-year quarter. Operating margin was 23.3%, 430 basis points better than the prior-year quarter. Net margin was 17.5%, 460 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $7.40.

Next year's average estimate for revenue is $5.57 billion. The average EPS estimate is $31.60.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,088 members out of 1,459 rating the stock outperform, and 371 members rating it underperform. Among 412 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 321 give priceline.com a green thumbs-up, and 91 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on priceline.com is outperform, with an average price target of $714.50.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of priceline.com. Motley Fool newsletter services have recommended buying shares of priceline.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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