Priceline’s Revenues Soar 44 Percent in Q2
Priceline reported that revenues in the second quarter increased 44 percent to $1.1 billion compared to the same period a year ago, driven by strong international growth.
The travel company, which focuses on booking hotel rooms under several different brands around the world, said its international operations contributed revenues of $612.9 million, a 90 percent increase versus the second quarter 2010.
Priceline also reported that profits spiked, totaling $256.4 million or $5.02 a share in the second quarter, compared to $115 million or $2.26 a share in the same period a year ago.
The Norwalk, Conn.-based company easily beat analysts’ expectations, which usually base calculations on non-GAAP figures since the totals exclude some items.
The company’s non-GAAP income in the second quarter was $282 million, or $5.49 a share, to beat the street’s estimates of $4.89 a share. Revenues of $1.1 billion were about even with the Street’s estimates, which were expecting $1.08 billion.
In a release, the company’s CEO Jeffery Boyd said the strong second quarter was driven by global hotel and rental car bookings, which increased 56 percent and 55 percent respectively compared to the second quarter 2010.
The company said its third-quarter outlook includes continued increases in travel bookings that are on par with the second quarter, if not slightly lower, and non-GAAP net income between $9.10 and $9.30 a diluted share.
The company’s stock tumbled more than seven percent today, or $38.63 a share, to close at $483.34 a share, along with the overall market, which saw one of its worst days in years due to the debt crisis in Europe.