Tag Archives: expe

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.

Expedia Gallops On Trivago; But Terror Attacks Hit Global Travel

Expedia ‘s ( EXPE ) $632 million bet on Trivago paid off again Thursday when the No. 2 online travel agency announced first-quarter results that topped estimates, due in part to the German subsidiary’s 48% year-over-year growth. Expedia stock bounded as much as 10% Friday before the closing the session up more than 8%, near 116. Shares of No. 1 rival Priceline ( PCLN ) rose 2%, the day after the company’s chief executive stepped down following an investigation into an at-work relationship . For the quarter, Expedia reported $1.9 billion in sales, up 39% year over year, and 9 cents adjusted earnings per share, swinging from a 3-cent per-share loss in the year-earlier quarter. Both measures topped analyst views for $1.8 billion revenue and a 6-cent per-share loss. Credit Suisse analyst Stephen Ju boosted his price target on Expedia stock to 134 from 130 noting the “clean, across-the-board beat.” Ju kept his neutral rating on Expedia stock as he awaits the effect of $3.9 billion acquisition HomeAway. In total, Expedia spent $6 billion acquiring companies in 2015, Benchmark analyst Daniel Kurnos wrote in a research report. Trivago — which Expedia acquired a majority share in, in 2012 — was a highlight. Trivago revenue jumped 48% to $176 million and accounted for the second-largest chunk of revenue behind the $1.54 billion, up 32%, achieved in Expedia’s core online travel agency segment. Egencia and HomeAway brought in $110 million and $142 million. “Trivago again achieved profitability, as aggressive spending drove 48% revenue growth while still achieving 25% contribution margins in Europe and 10% contribution margins across all geographies outside of Europe,” Kurnos wrote. International bookings came in at $6.6 billion, up 22% year over year, but about $500 million shy of the consensus, Kurnos wrote. Domestic bookings of $12.3 billion, up 38%, were in line with views. “We think most travel companies are being given a pass given the uncertain overall impact of the recent terror attacks,” Kurnos wrote. He has a 135 price target and buy rating on Expedia stock. Cowen analyst Kevin Kopelman expects a difficult second quarter as Expedia faces Easter-related headwinds and a difficult comparison. Of Expedia’s 37% total bookings growth in Q1, 24% was organic. For Q2, he forecasts 26% and 18%, respectively. But Q4 could signal a return to growth “as Expedia anniversaries both the Paris attacks and the initial rollout of TripAdvisor’s Instant Book partnership with Priceline,” he wrote in a report. Kopelman reiterated both a 135 price target and outperform rating on Expedia stock.

Expedia Rockets On Q1 Beat, Pulling No. 1 Rival Priceline Up

Expedia ( EXPE ) stock rocketed late Thursday after the No. 2 online travel firm topped Wall Street’s Q1 expectations on massive year-over-year boosts in room-night stays and gross bookings. In after-hours trading, Expedia stock was up more than 12%, rebounding from 0.7% decline in Thursday’s regular session, after No. 1 rival Priceline ( PCLN ), earlier in the day, announced its CEO had stepped down following an investigation into a relationship with an employee. Priceline stock closed down 2.7%, but buoyed somewhat late on Expedia’s coattails and was up 2% after hours. For Q1, Expedia reported $1.9 billion in sales, up 39% vs. the year-ago quarter, and 9 cents earnings per share minus items, swinging from a 3-cent per-share loss. Both metrics topped the consensus expectation of 28 analysts polled by Thomson Reuters for $1.8 billion and a 6-cent per-share loss. During Q1, room-night stays and gross bookings jumped by 42% and 32%, respectively, on a year-over-year basis, Expedia said. The company also completely migrated Orbitz.com and CheapTickets.com onto the Expedia platform. Expedia didn’t give Q2 guidance in its earnings release, but the consensus models $2.26 billion in sales and 98 cents EPS minus items, which would be up a respective 36% and 10% vs. the year-ago quarter.