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Online travel stocks tick higher AH following Priceline's Q2 report

  • Expedia (EXPE) and TripAdvisor (TRIP) +1% AH after Priceline beats Q2 estimates and issues solid Q3 guidance.
  • Priceline (PCLN - +5.3% AH) expects Q3 gross travel bookings to rise 27%-34% Y/Y in Q3 vs. 38% in Q2, thanks largely to international bookings growth of 32%-39% (domestic bookings are expected to rise 5%-10%). Revenue is seen rising 23%-30% vs. 27% in Q2.
  • Priceline's international bookings rose 44% Y/Y in Q2, and domestic bookings 12%. Hotel room nights (+38%), rental car days (+46%), and air tickets (+1.8%) all grew at a faster Y/Y clip than in Q1.
  • However, the company's online ad spend rose 47% Y/Y to a sizable $463.1M (it rose 45% Y/Y in Q1), evidence online travel firms continue to compete aggressively over Google keywords.
  • Orbitz (OWW) +0.6% AH after soaring 36.7% in regular trading thanks to its Q2 revenue beat and strong guidance.
  • Orbitz expects Q3 revenue of $214M-$220M (above a $213.8M consensus), and 2013 revenue of $840M-$850M (above an $831.4M consensus). 2013 adjusted EBITDA is expected to grow 8%-10% from 2012's $128.4M.
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