Fri, Jun. 24, 3:46 PM
- Priceline (PCLN -12%) has plunged to four-month lows, but Piper Jaffray's Michael Olson sees a buying opportunity in online travel stocks, believing Brexit should not have a significant impact on European travel trends because the move will not have a major impact on consumer confidence.
- Olson thinks the protracted nature of the EU withdrawal process will ease its impact on consumer sentiment in Europe, and the European Central Bank already has implemented stabilization measures that should mitigate Brexit's impact on European consumer confidence.
- The U.K. represents just under 7% of the continent's travel demand, while a large portion of European travel consists of consumers traveling within their own countries, Olson says, adding that about half of PCLN's bookings are made by Europeans.
- Olson keeps Overweight ratings for PCLN, Expedia (EXPE -7%) and TripAdvisor (TRIP -6.1%), with respective price targets of $1,500, $147 and $95.
Wed, Jun. 22, 8:40 AM
- Shares of Priceline (NASDAQ:PCLN) are on watch after a timely upgrade from Barclays arrives.
- The investment firm moves to an Overweight rating from Equal Weight on its view profit margins will expand.
- "PCLN still stands out to us as an inexpensive name relative to structural trends and expected growth. We believe there is a valuation disconnect from concerns that are either timing-related or mostly played out," reads the note from analyst Christopher Merwin.
- PCLN +2.01% premarket to $1370.00.
Mon, Jun. 6, 4:04 PM
- With Kayak, Travelocity, HomeAway, and Orbitz having all been acquired, a Priceline (NASDAQ:PCLN) purchase of TripAdvisor (TRIP +4.9%) could be the online travel industry's next big M&A transaction, argue Bloomberg's Tara Lachapelle and Rani Molla.
- The authors highlight the recent stagnation of Priceline's shares, and the fact TripAdvisor is well off its highs. Some challenges to a deal: TripAdvisor currently sports a $10.4B market cap and has a somewhat lofty valuation (32x a 2017 EPS consensus of $2.26), and TripAdvisor's ties to John Malone's Liberty Interactive (which controls Priceline archrival Expedia) could get in the way.
- Though still down 17% YTD, TripAdvisor rallied to its highest levels since January today. Volume (3.05M shares) was well above a 3-month daily average of 2.16M.
Wed, May 4, 9:10 AM
Wed, May 4, 7:45 AM
- Priceline (NASDAQ:PCLN) reports profit jumped 21% in Q1 to $2B with international operations accounting for the bulk of the gain. The company ended the period with a gross profit rate of 20.8% vs. 18.9% a year ago.
- Total gross bookings were up 20.9% to $16.653B (+26% ex-F/X). Hotel room units sold showed the biggest increase in the quarter with a 31% Y/Y pop.
- Priceline says it will target total gross travel bookings growth of 11% to 18% in Q2. Revenue is seen growing 7% to 14%. The outlook on EPS for a $11.60 to $12.50 range falls short of consensus estimates.
- Previously: Priceline beats by $0.88, beats on revenue (May 4)
- PCLN -11.82% premarket to $1195.06.
Wed, Feb. 17, 10:14 AM
- Expedia (EXPE +6.4%) and TripAdvisor (TRIP +4.1%) are seeing healthy gains as Priceline (PCLN +10.6%) surges after beating Q4 estimates and reporting bookings growth accelerated to 13% Y/Y from Q3's 7% (and beat guidance for 1%-8% growth). Last week, Priceline and TripAdvisor gained in response to Expedia's Q4 numbers.
- Guidance: Priceline's Q1 top-line guidance is healthy: Bookings are expected to rise 12%-19% Y/Y (18%-25% exc. forex), room nights by 20%-27%, and revenue by 9%-16% (compares with Q4's 9%). EPS guidance of $9.00-$9.60 is below a $9.61 consensus, but (as Q4 results show) Priceline has a history of issuing conservative EPS outlooks.
- Q4 top-line performance: International revenue (89% of total revenue) rose 15.9% Y/Y (29% exc. forex) to $10.7B; U.S. revenue fell 7.6% to $1.3B. Agency revenue rose 15.3% to $10.3B; merchant revenue fell 0.9% to $1.7B.
Room nights booked rose 26.6% to 99.1M, an improvement from Q3's 22% growth and the highest growth rate seen since Q3 2014. Rental car days +10.6% to 12.2M vs. +13% in Q3. Air tickets -2.6% to 1.7M vs. -1.1% in Q3.
- Financials: GAAP operating expenses rose 11% Y/Y to $1.22B - $582M was spent on online ads (much of it going to Google), $33.4M on offline ads, $83.7M on sales/marketing, $106.6M on G&A, $32.3M on IT, $70.7M on depreciation/amortization, and $312.6M on "Personnel" expenses, including stock compensation.
Priceline ended Q4 with $2.6B in cash, $7.9B in long-term investments, and $6.2B in long-term debt.
- Priceline's Q4 results, earnings release
Wed, Feb. 17, 9:14 AM
Wed, Feb. 17, 7:26 AM
Wed, Feb. 17, 7:19 AM
- Priceline (NASDAQ:PCLN) reports gross travel bookings rose 12.7% to $12.02B in Q4.
- International bookings were up 15.9% (+29% constant currency), while U.S. bookings fell back 7.6%.
- Gross profit was up 12.2% to $1.879B. Operating expenses increased 11.5% to $1.221B.
- The company sees Q1 gross travel bookings growth of 12% to 19% and EPS of $9.00 to $9.60 vs. $9.60 consensus.
- PCLN +10.0% premarket to $1,222.
Wed, Feb. 10, 5:33 PM
- Though Expedia (NASDAQ:EXPE) missed Q4 EPS and (to a lesser extent) revenue estimates, the company reported gross bookings rose 32% Y/Y (40% exc. eLong, which has been divested) to $15B. Excluding eLong and the acquisitions of Orbitz/HomeAway, bookings rose 17% to $12.5B.
- Top-line performance: Expedia's core travel agency business saw bookings rise 44% to $13.6B, and its Egencia managed travel services business saw bookings rise 13% to $1.4B. U.S. bookings +50% to $9.6B; international bookings (hurt by a strong dollar) +26% to $5.4B. Hotel revenue +24%, air revenue (major boost from Orbitz) +61%, ad/media revenue +22%, other revenue +37%.
- Metrics: Excluding eLong (and including Orbitz/HomeAway), room nights rose 39% Y/Y to 52.8M thanks to both M&A and organic growth. U.S. room nights +33%, international +47%. Revenue/night fell 11%. Air ticket sales rose 70% thanks to Orbitz, with revenue/ticket dropping 5%.
- Financials: Thanks in part to Orbitz/HomeAway, adjusted costs/expenses rose 37% Y/Y to $1.57B, with sales/marketing spend rising 33% to $775M and R&D 48% to $170M. $45M was spent on buybacks. 2015 free cash flow was $581M (-44% Y/Y due to higher capex). Expedia ended 2015 with $1.7B in cash and $3.2B in debt.
- Expedia has jumped to $106.00 after hours. Priceline (NASDAQ:PCLN) is up 4.6% to $1,080.00. TripAdvisor (NASDAQ:TRIP) is up 6.7% to $58.00.
Wed, Jan. 27, 9:58 AM
- Believing the environment for online travel firms is "becoming less favorable," Goldman's Heath Terry has downgraded TripAdvisor (TRIP -2.1%) to Sell ahead of the company's Feb. 11 Q4 report, and cut his target by $9 to $59.
- Terry, who has also downgraded Priceline (NASDAQ:PCLN) to Neutral, argues high hotel occupancy and average daily rates serve to "crowd out leisure travelers," that rising online booking penetration rates leave less room for share gains, and that competition is growing from alternative accommodation providers (read: Airbnb) and traditional traffic sources (e.g. Google).
- Regarding TripAdvisor in particular, Terry is worried about valuation, slowing revenue growth, and near-term monetization headwinds caused by Instant Booking adoption. "While we believe a cost per acquisition based model like [Instant Booking] has the potential to generate incremental revenue for TripAdvisor over time, the lack of broad coverage, terms negotiated during a period of unprecedented supplier leverage, and conversion rate challenges from the dual track results consumers are presented with are likely to drive slowing revenue growth in the interim ... That said, we believe as a traffic asset TripAdvisor could be an attractive M&A target to larger OTAs."
- Yesterday: TripAdvisor strikes Instant Booking deal with Starwood
Wed, Jan. 27, 7:34 AM
Dec. 22, 2015, 12:06 PM
- Vague M&A chatter is once more providing a lift to YELP. Priceline (NASDAQ:PCLN) has been mentioned as a suitor this time around.
- Volume is moderate thus far: 1.01M shares vs. a 3-month daily average of 2.85M. 9.5M shares (17% of the float) were shorted as of Nov. 30.
- The rumor comes less than a week after Yelp and Priceline-owned OpenTable confirmed they've ended a multi-year partnership. Yelp bought OpenTable rival SeatMe in 2013.
- 3 months ago: Yelp higher amid vague M&A chatter, call-buying
Dec. 10, 2015, 9:14 AM
- Priceline (NASDAQ:PCLN) and an unnamed investment firm firm are each investing $500M in Chinese online travel leader Ctrip (NASDAQ:CTRP) via convertible bonds. Priceline is now free to own up to 15% of Ctrip; its cumulative investment in the company (all in convertible bonds) has risen to $1.9B (45.5M shares).
- The investments come less than two months after Ctrip struck a deal to buy Baidu's stake in #2 Chinese online travel firm Qunar, thus leaving Ctrip with 45% of Qunar's voting interests and Baidu with 25% of Ctrip's voting interests.
- Ctrip has risen to $52.33 premarket.
- PRs: Priceline, Ctrip
Nov. 24, 2015, 11:15 AM
- Priceline (PCLN -3.4%), Expedia (EXPE -3.5%), and TripAdvisor (TRIP -2.9%) are under pressure after the State Department (citing fears more attacks are planned) issued a global travel alert for Americans in the wake of the Paris attacks. The Nasdaq is down 0.8%.
- The alert doesn't call on Americans to avoid traveling, but does urge them to "exercise vigilance when in public places or using transportation."
- Of the three companies, Priceline has the most international exposure: 88% of its Q3 bookings came from non-U.S. markets, with a large chunk coming from Europe via the company's Booking.com unit.
- Expedia received 46% of its Q3 revenue from outside the U.S.. TripAdvisor got 47% of its Q3 revenue from outside North America.
Nov. 16, 2015, 9:57 AM
- A group of travel, lodging, and airline stocks are weaker than broad market averages on heightened concerns over global travel and tourism after the Paris attacks.
- Notable decliners include Delta Air Lines (DAL -1.8%), American Airlines Group (AAL -1.6%), Priceline (PCLN -4.5%), Expedia (EXPE -2.1%), China Lodging Group (HTHT -0.6%), Wyndham Worldwide (WYN -2.5%), Hilton Worldwide (HLT -2.6%), and Intercontinental Hotels Group (IHG -1.6%).
The Priceline Group, Inc. is an online travel company, which provides consumers accommodation reservations including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties through its Booking.com, priceline.com and agoda.com brands. Its priceline.com brand also... More
Industry: General Entertainment
Country: United States
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