Priceline Group Inc. (NASDAQ: PCLN) reported its second-quarter financial results before the markets opened on Wednesday. The company had $12.45 in earnings per share (EPS) on $2.28 billion in revenue, compared to Thomson Reuters consensus estimates of $11.98 in EPS on $2.27 billion in revenue. In the same period of the previous year, the company posted EPS of $12.51 and revenue of $2.12 billion.
The company gave guidance for the third quarter; it expects EPS in the range of $22.95 to $24.45 and revenue growth of 1% to 8% year over year. The consensus estimates call for $23.32 in EPS on $3.10 billion in revenue.
Second-quarter gross travel bookings of all travel services purchased by Priceline’s customers were $15.0 billion, an increase of 11% over a year ago (approximately 26% on a constant currency basis).
Priceline’s gross profit for the second quarter was $2.1 billion, an 11% increase from the prior year, which is roughly a 26% increase on a constant currency basis. International operations contributed gross profit in the second quarter of $1.8 billion, an 8% increase from a year ago and about 26% higher on a constant currency basis.
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Darren Huston, president and CEO of Priceline, commented on earnings:
The Priceline Group performed well in the quarter as the summer travel season got off to a strong start with a second consecutive quarter of accelerating growth in hotel room nights and rental car days booked. Globally, our accommodation business booked 113 million room nights in the second quarter, up 26% over the same period last year. International gross bookings growth accelerated to 30% on a constant currency basis and the Group’s total gross profit grew by about 26% on a constant currency basis.
Huston continued with the third-quarter outlook:
We believe we are well set up to deliver the largest quarter in our company’s history. Our teams are ready and are intensely focused on delivering the best selection, competitive pricing, and the best online and offline experience to our customers around the world.
At the end of the second quarter, Priceline had $1.89 billion in cash and cash equivalents, compared to $3.15 billion at the end of December 2014.
Shares of Priceline closed Tuesday up 3.5% to $1,283.99, in its 52-week trading range of $990.69 to $1,329.90. In early trading indications Wednesday after earnings were released, shares were up an additional 6.5% at $1,367.00. The stock has a consensus analyst price target of $1,353.50.
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