Priceline Earnings Up With Other Online Travel Stocks (PCLN, CTRP, EXPE, OWW)

by Jeff Reeves | May 13, 2010 12:29 pm

Priceline.com Inc. (NASDAQ: PCLN[1]), an online travel merchant with a market cap of almost $10 billion, reported strong first-quarter earnings on Tuesday. This is along with strong results from other travel stocks such as Ctrip International Ltd.  (NASDAQ: CTRP[2]), Expedia, Inc. (NASDAQ: EXPE[3]) and Orbitz Worldwide Inc. (NYSE: OWW[4]).

Priceline (PCLN[1]) reported strong earnings Tuesday reflected a recovery in consumers looking to travel on their vacations. The Internet company reported earnings of $53.9 million, or $1.06 per share, on $584.4 million in sales, compared with earnings of $25 million, or $0.53 per share, on $462.1 million in sales during the first quarter of 2009. Excluding special items, Priceline posted earnings of $1.70 per share for the latest quarter, resulting in a 3% earnings surprise.

For the current quarter, PCLN stock said that its strong first-quarter earnings results reflected a healthy increase in hotel and international travel bookings through its Web sites. PCLN said in its earnigns that the total value of all travel booked through its web portals was approximately $3 billion in the first quarter, an increase of more than 50% from the $1.9 billion it logged in the first quarter of 2009.

Priceline warned in its earnings report, however, that its second-quarter results could be hurt by the recent Icelandic volcano eruption which has disrupted travel for the past several weeks. For the second quarter, PCLN stock said it expects net income of $2.50 to $2.70 per share. But analysts expect income of $2.83 per share.

• Ctrip Earnings: Also on Tuesday, Chinese online travel company Ctrip International (CTRP[2]) late Tuesday reported first-quarter results that beat analyst views, as China’s travel market continued to rebound. China travel stock CTRP said in its earnings report that profit rose 46% to 19 cents from 13 cents in the year-earlier quarter. Analysts were expecting 18 cents. Shanghai-based Ctrip earnings also featured revenue that surged 47% to $86 million, easily topping forecasts of $80.6 million for the earnings report.
• Orbitz Earnings: Online travel stock Orbitz (OWW[4]) reported earnings last week which featured a significantly narrowed first-quarter loss. The online travel stock said May 5 that it lost $5.3 million, or 5 cents per share, compared with a loss of $336.2 million or $4.02 per share a year earlier. The results were better than the loss of 7 cents-per-share that analysts were expecting from OWW earnings Revenue slipped 1% to $187.2 million, but OWW stock revenue still topped forecasts of $184.1 million for the earnings report.
• Expedia Earnings: First quarter earnings from Expedia (EXPE[3]) topped estimates by about 18% on April 30. Specifically, EXPE stock reported EPS of 26 cents compared with forecasts of 22 cents beat the Zacks Consensus by 4 cents, or 17.4%. Revenue was in line with expectations. Revenue for the quarter was $717.9 million, up 2.9% sequentially and 12.9% year over year.

As of this writing, Jeff Reeves did not own positions in any of the stocks named here.

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