Investors cut Priceline a break
Shares still rise Friday, even as the company worries about competition and economic uncertainty.
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.
- No hiding it: US military is crazy for camo
- Facebook phone kicked to the 99-cent bargain bin
- Gluten-free food business is making a lot of bread
Copyright © 2013 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.
You don't have to sign up for Medicare. The catch? If you don't enroll when you're first eligible, you could pay some serious financial penalties later in life.
- Student loan debt climbs for 5th year in a row
- Plans revived for 'floating city' of 50,000 people
- Homeowners insurance: Bountiful coverage for bad cooking
- 3 stocks for the 3-D printing revolution
- Why restaurants are adding tablets to the tables
- America's greatest export is its debt
- True test for Obamacare: Will it make US healthier?
- Who will foot the bill for Detroit's bankruptcy?
- How to refinance without resetting the mortgage clock
[BRIEFING.COM] The S&P 500 shed 0.1%, registering its fourth consecutive decline. Today's session proved to be a bit of a roller coaster ride for stocks as the S&P 500 opened in the red, rallied into positive territory, fell to fresh lows, and regained the bulk of its losses into the close.
For the second day in a row, the early weakness coincided with heavy selling in Europe. In addition, bonds and risk assets were pressured by a better-than-expected ADP Employment report, which ... More
More Market News
For years, Todd Mills pushed Frito-Lay to make taco shells from Doritos. He died from a brain tumor on Thanksgiving.