Priceline.com: Premium Valuation Is Not Justified By A Strong Business Model
By Robert Broens: Shares of Priceline.com (PCLN) trade 4% lower in after hours trading after the online travel booking company reported its first quarter results.
First Quarter Results
Priceline.com reported a 28% increase in first quarter revenues to $1.0 billion. Gross profits increased 47% to $743 million, with operating income increasing 57% to $242 million. GAAP net income came in at $182 million, or $3.54 per share. Analysts expected the company to report $1.04 billion in revenue.CEO Boyd commented on the figures. "The Priceline Group's hotel business booked 46 million room nights in the quarter. International gross bookings increased 54% driven by strong results at Booking.com and Agoda.com. The Group continues its investment in building content for our customers and attractive new offerings to support future growth."Growth at the company's international division increased 54% on the year. Gross bookings came in at $5.4 billion, despite some weakness in certain parts ofComplete Story »