Tag Archives: ebitda

Priceline Q1 Sales Seen Rising Sharply But Lagging Rival Expedia

A week after its CEO Darren Huston tendered his resignation over an inappropriate-at-work relationship, No. 1 online travel agency Priceline ( PCLN ) is expected Wednesday to report double-digit Q1 sales and earnings growth. The consensus of 30 analysts polled by Thomson Reuters, however, doesn’t foresee Priceline surpassing the growth rate for No. 2  Expedia ( EXPE ), which last week reported respective year-over-year gains of 39% and 31% for sales and earnings before interest, taxes, depreciation and amortization (EBITDA). Priceline’s Q1 earnings are slated to come out before the open Wednesday. In afternoon trading on the stock market today , Priceline stock was down a fraction, near 1,347. Expedia stock was down more than 1%. Priceline stock broke out of a cup-with-handle base at a 1,361.73 buy point on April 18. Priceline is expected to report $2.12 billion in sales, $9.65 earnings per share minus items and $620.6 million EBITDA, up 15%, 19% and 17%, respectively vs. the year-earlier period. Three months ago, Priceline guided to $9-$9.60 EPS ex items and $580 million to $620 million EBITDA. Sales were guided up 9%-16% vs. the year-earlier quarter, or about $2 billion to $2.13 billion. On a year-over-year basis, Priceline expects room-night stays booked and gross bookings to grow 20%-27% and 12%-19%, respectively. Last week, Expedia reported  Q1 room-night stays and gross bookings rising a respective 42% and 32%. Piper Jaffray analyst Michael Olson reiterated his overweight rating and 1,540 price target last week on Priceline stock. Huston’s resignation isn’t “a risk to near-term financials, but it does pose a slight risk of distraction for employees of the company’s Booking.com segment, as well as investors,” he wrote in a research report. Gillian Tans, chief operating officer and president of Booking.com, was tapped to succeed Huston as Booking.com CEO. Booking.com is Priceline’s accommodations-booking website. Priceline Chairman Jeffrey Boyd, former longtime CEO of the company, assumed the role of interim CEO while it searches for a new CEO.

SunPower CEO Attributes 8point3 ‘Drop Downs’ To Q1 Sales Miss

Wall Street bandied SunPower ( SPWR ) stock Thursday after the No. 2 solar company reported forecast-topping Q4 sales and earnings but issued Q1 sales guidance that halved analyst views, which CEO Tom Werner said stemmed from project “drop downs” to yield company 8point3 Energy Partners ( CAFD ). There was a 12% disparity Thursday between the high and low points of SunPower stock. Shares were up as much as 4.7% earlier, but in afternoon trading on the stock market today , SunPower stock was down 4%, near 23. Analysts were forgiving. Credit Suisse analyst Patrick Jobin says that SunPower is “bucking the trend” of solar demand challenges and investor fears of a capital squeeze. Solar is a capital-intense industry, and limited access to capital can strangle growth. “SunPower is bucking the trend and remains in a healthy position with a clean balance sheet and an execution track record that is enabling growth,” Jobin wrote in a research report. He retained his outperform rating and 32 price target on SunPower stock. EBITDA Shift Buoys Q4 For Q4, SunPower reported $1.36 billion in sales ex items and $1.73 earnings per share minus items, up 124% and 563%, respectively, vs. the year-earlier quarter. Both metrics topped the consensus view for $1.27 billion and $1.52. Earnings before interest, taxes, depreciation and amortization (EBITDA) surged 347% to $379.9 million. CFO Charles Boynton, on the company’s earnings conference call Wednesday, pointed to a $65 million shift in EBITDA after projects expected to be completed in the current quarter actually wrapped up in Q4. SunPower finished 2015 with $556.5 million EBITDA, up 49%. Sales minus items and EPS ex items came in at $2.6 billion and $2.17, flat and up 63%, respectively, and beating consensus expectations. The EBITDA shift impacted Q1 and 2016 guidance, Boynton said. SunPower lowered 2016 EBITDA guidance by that $65 million, to $450 million-$500 million, and sees $0-$25 million in Q1. For the year, SunPower expects $3.2 billion-$3.4 billion in sales minus items, where analysts had modeled for $3.42 billion. Yieldco Drops Impact Q1 Guide But the Q1 sales-minus-items view for $290 million-$340 million was far short of Wall Street views for $675.7 million. CEO Werner attributed the guidance miss to the timing of project drop-downs to 8point3. SunPower and First Solar ( FSLR ) teamed up to form the yield company last year, a company formed to own assets that produce predictable cash flows. Yieldcos are gaining headway in the solar industry. “We’re building projects in Q1 that we won’t sell to 8point3 until Q3, so we don’t get the revenue and the income until Q3,” Werner told IBD on Thursday. “It’s the timing of the ‘drop down’ of projects to Q3.” Investors are warming to the yieldco idea, Werner says. 8point3 made its IPO in June, pricing shares at 21. It now trades near 16%, up 3% Thursday afternoon. “Think of it (the yieldco) as strategic and the core of what we do,” Werner said. During Q4, SunPower dropped down its first project to 8point3 — a 20-megawatt project for California’s Kern County School District consisting of 27 carports at various locations across the district, according to a SunPower press release. And the 135-MW Quinto solar project in central California is now also generating energy for 8point3. Power Plants To Fuel Growth In 2016, Werner expects 60% of sales to stem from SunPower’s utility business. In Q4, power plants comprised 77% of SunPower’s sales. Residential and commercial accounted for 13% and 10%, respectively. SunPower’s vertical overlap and geographic expansion will help growth, Werner told IBD. On the call, he emphasized SunPower’s investment in China and the U.S. China and the U.S. are at opposing ends of the solar spectrum. China, Chile and South Africa have heavy investments in utility-scale solar. The U.S., Japan and Europe are more focused on rooftop solar. In the U.S., extension of a key subsidy, the Investment Tax Credit on solar, will help the rooftop business boom in 2016, Werner says. And companies like Apple ( AAPL ) and Stanford University have created their own hybrid — an offsite utility with a direct access line, Werner said. He also sees growth stemming from SunPower’s Helix platform, which aims to cut installation time. Werner likened it to a solar system for a modular home; the cables are precut, and a roofing company merely snaps them together. “You don’t need all the trade labor,” he said. “You can have a roofing company install a system and then just a little electrician time. It’s five to 10 times faster.” SunPower continues to partner with Tesla ( TSLA ), Sunverge and Stem for solar storage solutions. Two homebuilders in California and Germany are offering it as a standard option, Werner said.  

Paris Terrorist Attacks Likely To Impact Priceline Q4 Earnings

Online travel agency giant Priceline Group ( PCLN ) is set to report its Q4 earnings on Wednesday before the market open, with the global economy in focus. Analysts polled by Thomson Reuters are expecting single-digit sales and earnings gains. The top line is estimated to grow nearly 6% from the year-earlier quarter, to $1.95 billion. Earnings per share minus items are expected to rise almost 9% to $11.80. Priceline stock is up more than 4% in afternoon trading on the stock market today , near 1,106. The company has an IBD Composite Rating of 72, in which 99 is the highest. Like most stocks, Priceline has had a tough year since touching a record high above 1,476 in November. Priceline stock hit a 29-month low of 954 last week. Online travel rival Expedia ( EXPE ) last week said the terrorist attacks in Paris last year did have an impact on Q4 earnings results. Expedia executives, however, said they were confident that foreign exchange would be less of a factor in 2016, which eased investor worries as travel stocks rose. TripAdvisor ( TRIP ), a travel reviews site, last week also released better-than-expected Q4 earnings , further bolstering the sector. But, RBC Capital Markets analyst Mark Mahaney says several factors will contribute to Priceline’s growth in Q4 being “less than usual.” The terrorist attack on Paris in November likely hurt revenue, he wrote in a research note Feb. 12, and Web traffic is slightly lower. Still, Mahaney says that Wall Street estimates are “reasonable.” Citing data from Smith Travel Research, Mahaney wrote that the hotel industry has experienced slightly negative occupancy rates and other key metrics. For Q4, Mahaney forecasts an 8% decline in U.S. bookings but a 23% rise in international bookings. The profit margins of earnings before interest, taxes, depreciation and amortization (EBITDA) might continue to fall, he says. Mahaney reiterated RBC’s price target of 1,700 on Priceline stock, citing three new areas of growth: outbound travel from China and (to a lesser extent) Latin America, and growth in vacation rentals and alternative accommodations. San Francisco-based privately held Airbnb — which investors have valued at over $20 billion (Wall Street values Priceline at over $54 billion) — has pioneered the alternative accommodations category, but as of late has been criticized for its approach to new markets. Critics say “begging for forgiveness vs. asking permission” is an expensive strategy that is unsustainable in the long term. Airbnb spent more than $8 million in San Francisco to fight legislation that would have further tightened regulations targeting firms such as itself and Expedia-owned HomeAway, which also is in the alternative accommodations business. Priceline and Expedia have taken note of Airbnb’s success and are building up competitive offerings.