Priceline Group (PCLN) Stock: Up On Earnings… What’s Next?

Priceline Group Inc (NASDAQ: PCLN)

Priceline Group is having an incredible day in the market today, and for a very good reason. Earlier today, the company reported earnings for the fourth quarter of 2015 as expected. However, no one expected that they would blow away both earnings and revenue expectations. Today, we’ll talk about what we saw from the earnings report, how the market reacted to the news, and what we can expect to see from PCLN moving forward.

Trade smarter and make more money with Tradespoon!

PCLN Produces Solid Earnings

As mentioned above, Priceline Group reported its fourth quarter earnings before the opening bell today, and that report has excited investors in a big way. Here’s what we saw from the PCLN earnings report:

  • Earnings Per Share – In terms of earnings per share, analysts expected that PCLN would produce $11.80 in the quarter. However, the company blew away these expectations, actually producing earnings in the amount of $12.63 per share. That’s $0.83 ahead of expectations.
  • Revenue – In terms of revenue, Priceline Group also produced solid results. In the fourth quarter, analysts expected the company to produce revenue in the amount of $1.96 billion. However, the company actually produced revenue in the amount of $2 billion.
  • Guidance – As if blowing away earnings and revenue expectations wasn’t enough to get investors excited, PCLN also produced strong guidance for the year 2016. In terms of year-over-year increase in room nights booked, the company is expecting to see an increase of between 20% and 27%. When it comes to year-over-year increase in total gross travel bookings, PCLN is expecting to see growth of between 12% and 19%.

As you can see from the data above, the earnings report was overwhelmingly positive. In a statement, Darren Huston, President and CEO at PCLN had the following to say about the quarter:

The Priceline Group finished 2015 with a strong 4th quarter, reporting accelerating growth in hotel room nights booked… Globally, our accommodation business booked 99 million room nights in the fourth quarter, up 27% over the same period last year. International gross bookings growth accelerated to 29% on a constant currency basis and the Group’s total gross profit grew by about 23% on a constant currency basis. continues to expand and innovate and now has over 850,000 hotels and other accommodations in over 220 countries and territories across the globe, up 34% from last year.”

How The Market Reacted To The News

As investors, we have learned that any time we see positive news with regard to a publicly traded company, we can expect to see a positive reaction in the market. Not to mention, few pieces of news have the ability to move the market quite like strong earnings. With such a strong earnings report, Priceline is naturally seeing incredible growth in the market today. Currently (9:30), PCLN is trading at $1,235.70 per share after a gain of $125.02 per share or 11.26% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from PCLN. Over the years, the company has proven its ability to generate revenue and earnings. More importantly, this company is on a massive growth trend, and since investors are investing for growth, it is becoming more and more appealing every day. All in all, things are looking great for PCLN.

Don’t waste your time! Click here to find winning trades in minutes!

What Do You Think?

Where do you think PCLN is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]

Leave a Comment