By Marie Cabural
Priceline posted non GAAP earnings of $12.51 per diluted share, higher than the $12 in earnings per diluted share estimated by Wall Street analysts.
The stock price of Priceline Group Inc (PCLN) surged after reporting strong financial results for the second quarter.
The shares of the online travel reservations company gained more than 3% to $1,322.71 share at the time of this writing around 12:05 in the afternoon in New York.
Priceline Group's financial results
Priceline Group Inc reported that its gross profit increased 36% to $1.9 billion for the second quarter. According to the company, its GAAP net income was $576 million or $10.89 per share.
Its non-GAAP net income was $667 million or $12.51 per diluted share. Wall Street analysts expected Priceline Group Inc to deliver non-GAAP earnings of $12 per diluted share.
Priceline Group Inc said its gross travel bookings rose 34% to $13.5 billion. The increase was 32% on a local currency basis. The company generated $2.12 billion in revenue, an increase of 26% during the quarter.
In a statement, Darren Huston, president and CEO of Priceline Group Inc said, the company achieved strong results for the second-quarter because the summer travel season kicked off to a solid start for its brands.
He added, "We believe the Group delivered market-leading growth from both the top line and profitability perspective. Globally, our accommodation business booked 90 million room nights, up 29% over the same period last year."
Huston also said Price Group Inc will continue to invest in customer experience, content expansion and market penetration to boost its franchise.
For the third quarter, Priceline Group Inc expected to achieve growth of 19% to 20% in total gross travel bookings. The company estimated that its international travel booking will rise between 22% and 32%, and domestic travel bookings will go up around 10% to 15%.
Priceline Group Inc estimated its revenue to increase between 15% and gross profit to climb in the range of 21% to 31%. The company expected to deliver $1.365 billion in adjusted EBITDA and non-GAAP net income or around $19.60 to $21.10 per diluted share.
Commenting on the acquisition, Huston said, "We are also pleased to welcome OpenTable to the group and are excited by the opportunity to deliver exceptional online booking experiences for our customers and partners - including hotels, rental cars, airlines and now restaurants - worldwide."
In June, Raymond James, a research firm recommended a Strong Buy for the shares of Priceline Group Inc after the company announced its acquisition of OpenTable.