What Analysts Recommend for Priceline ahead of Its 1Q17 Results
Out of the 31 analysts tracking Priceline (PCLN), seven analysts have a “strong buy” recommendation on the stock, and 18 analysts have a “buy” recommendation on the stock.
Priceline (PCLN) trades at a forward PE multiple of 17.1x. This is higher than its average valuation of 20x since November 2008.
Priceline (PCLN) expects its 1Q17 EBITDA to be ~$550 million–$580 million. It also expects its gross profit to increase 9.5%–14.5%
Priceline (PCLN) and its competitor Expedia (EXPE) have been aggressively acquiring smaller players in a bid to achieve growth.
For 1Q17, analysts are estimating Priceline’s (PCLN) revenues to grow 13.8% year-over-year to $2.4 billion, lower than the 16.7% YoY growth seen in 1Q16.
From 2012 to 2014, Priceline’s gross bookings grew at an average of 30%. For 2015, accounting for the strong US dollar, growth was just 10% YoY, or 25% on a constant currency basis.
Priceline (PCLN), the world’s largest online travel agency, is expected to release its 1Q17 results on May 10, 2017. Analysts expect revenues to rise 13.8% to $2.4 billion.
The consensus 12-month target for PCLN’s stock price is $1,851.80, which indicates a 7.4% return potential from its February 28, 2017, closing price of $1,741.00.
Priceline (PCLN) currently trades at a forward PE (price-to-earnings) multiple of 25.2x.
The total debt on Priceline’s (PCLN) balance sheet has increased from $1.9 billion in 2013 to $3.9 billion in 2014, $6.2 million at the end of 2015, and $7.1 billion in 2016.
Priceline (PCLN) invested $4 billion in marketing for 2016, higher than its $3 billion marketing expenditures in 2015.
During 4Q16, Priceline’s Global Accommodation business booked 129.7 million room nights, an increase of 31% year-over-year (or YoY) from 4Q15.
Priceline’s (PCLN) fiscal 2016 performance was subdued by the dollar’s appreciation. Because Priceline has a widespread international presence, it’s prone to currency fluctuation risks.
For 1Q17, Priceline (PCLN) expects its gross profits to grow 9.5%–14.5%. Its adjusted EBITDA is expected to rise 7% to $550 million–$580 million.
Priceline (PCLN) reported its 4Q16 results on February 27, 2017. Priceline reported earnings per share of $13.50, a 34.7% increase YoY, which beat analyst estimates of $12.85 per share.
After the unconventional acquisition of Opentable, Momondo was a logical addition as it adds to the travel database of Kayak’s existing portfolio.
Year-to-date through February 23, 2017, Priceline (PCLN) stock has risen 11.7%, outperforming rivals Expedia and TripAdvisor (TRIP).
With its metasearch brands—Kayak, Momondo, and Skyscanner (through Ctrip)—Priceline seems to have a larger share of the pie, leaving little on the table when Expedia goes shopping.
Momondo is estimated to have generated $125 million in revenues for the last 12 months, which means a price-to-sales multiple of 4.4x.
Earlier this month, the Priceline Group (PCLN) signed a deal to acquire Momondo Group. Priceline will acquire all outstanding shares of Momondo for $550 million in an all-cash deal.