Investors cut Priceline a break

Shares still rise Friday, even as the company worries about competition and economic uncertainty.

By Jonathan Berr May 10, 2013 5:01PM
William Shatner, spokesman for, appears on the company's homepage on Feb. 26, 2013 (© Daniel Acker/Bloomberg via Getty Images)Shares of (PCLN) ended Friday on a positive note as investors applauded better-than-expected earnings from the online travel site made famous by actor William Shatner. Even lackluster earnings guidance from the company didn't stop the stock from closing up nearly 4% to $765.41.

In a statement accompanying the earnings report, CEO Jeffrey Boyd even spoke of "economic uncertainty" and "intense" competition -- phrases that ordinarily cause investors to flee. But this time, Wall Street essentially handed Priceline a rare "Get of Jail Free" card.

Why? The company's track record has been spectacular. Its stock has been one of the best -- if not the best -- performers in the S&P 500 ($INX) in recent years. The company continues to mint money. Its earnings expectations for the current quarter are between $8.87 to $9.45 per share, and though that's below the $9.59 per share analysts had expected, it is still well ahead the $7.85 per share reported a year earlier.

As Ascendiant Capital Group analyst Edward Woo told Bloomberg News: "The guidance is just them being conservative. They had generally OK to positive earnings. I wouldn’t be too concerned, even though the company said there are additional economic headwinds."

"OK" earnings for Priceline would be considered awesome by most companies. Net income for the first quarter rose 34% to $244.3 million, or $4.76 a share, even as executives hiked online advertising spending by an astounding 45%. Revenue surged 26% to $1.3 billion.

Still, while investors may have given Priceline a pass for this quarter, it's doubtful they will do it again.

--Jonathan Berr does not own shares of a the listed stocks. Follow him on Twitter @jdberr

More on moneyNOW

Tags: PCLN
May 10, 2013 7:28PM
Wow, just another example of your tax dollars well spend, does the president needs more than one plane ?? I feel that we bought it we should split the funds amongs the people who payid for it, us the American public. 
May 10, 2013 6:30PM
If this healthcare plan is good for everyone else than it should be good for the people that voted it in. After all they are our representatives so they need to lead by exMLE.
May 10, 2013 5:22PM
Buy a lot of land.....remove the wings.....makes a quite comfortable house I bet....getting the furniture in /out be a problem though.....jejejejejje
But overall....way cheaper than a house.....
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

Trending NOW

What’s this?


[BRIEFING.COM] Equity indices remain near their flat lines as heavily-weighted sectors continue trading in mixed fashion.

At this juncture, the industrial sector (-0.6%) is the weakest performer among cyclical groups with defense contractors pressuring the space. The PHLX Defense Index is lower by 1.1% with just about every component trading lower. Including today's decline, the Defense Index is now down 2.4% for the week and off 0.7% so far in September. On the upside, General ... More