From CLUSTERSTOCK: Net wunderkind Priceline (PCLN) continues its remarkable turnaround, blowing out consensus again. One bull, Mark Mahaney of Citi, is off the train (switching to Expedia, no less), but Goldman and JP Morgan (among others) think it’s going higher.
The bear story on Priceline is that the recession and oil prices will eventually lead to higher airline fares and fewer tickets sold. This certainly isn’t happening yet–in the US (bookings up 50%) or internationally (+70%).
Priceline posted proforma EPS of $0.76 on $403 million in revenue, blowing away consensus of $0.60 and $377 million. Priceline benefitted from robust gross bookings growth across all geographies. In the US, bookings accelerated for the third straight quarter to 51% year-over-year.
See Also: Pricey Priceline Panned