Skip to main content

PCLN STOCK WRITE UP


PCLN (THE PRICELINE GROUP)

  • P/E: 40.6
  • GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.64
  • SECTOR: CONSUMER SERVICES
  • ASSETS-LIABILITIES: 2
  • DIVIDEND: none

Priceline is a vacation-booking company, offering services for flight reservation, hotel reservation, and car rental in one convenient place. In recent years, Priceline's revenues have grown above Expedia's, another major competitor in the field. They recently reported earnings on 5/9/17, and the recent market dip has provided an opportunity to buy shares at a discounted price.
Compared to the comparable 2016 quarter, Priceline increased revenue by 13%. GAAP net income also increased by a substantial amount. The company also increased spending across the board, from advertising to “general and administrative.” Part of the growth in income is a substantial decrease in what the company reports as “cost of revenues.”
Glenn Fogel, former investment banker and Harvard Graduate, is the group's CEO as of December 2016. Subsequent to his appointment to the office, Priceline acquired the Momondo group in 2017, which is a UK website for travel metasearch. Previously, the company acquired Kayak, another metasearch company, and opentable, a restaurant booking app.
After the most recent quarter, the company set its profit guidance below wall street expectations, according to seekingalpha. Between 2008 and 2016, the number of travelers who booked trips online rose approximately 50% to 64 million, so wall street expectations have risen for travel stocks, consequently driving up share prices. Priceline has been able to increase their revenue without cutting jobs or marketing budget. If Priceline can keep up with these elevated Wall street expectations, shares will continue to rise. Priceline's price-to-earnings multiple is below two of its closest competitors, TRIP, and EXPE.
Priceline has a clean balance sheet, an efficient business model producing income from revenue without sacrificing spending that is essential to the business, and a new CEO who has already made a large acquisition to expand company exposure overseas. This stock's success is reliant on the perceived wealth of consumers, as people who do not feel they have money will not travel. Priceline has been able to produce earnings consistent with expectations to keep its price-to-earnings multiple below competitors.










Labels:

Comments

Post a Comment

Popular posts from this blog

ISRG STOCK WRITE UP

ISRG (INTUITIVE SURGICAL INC) P/E: 48 GAAP DILUTED YEAR-OVER-YEAR EPS GROWTH LAST QUARTER: $1.13 SECTOR: HEALTH TECHNOLOGY ASSETS-LIABILITIES: 7.05 DIVIDEND: none ISRG is the ticker for Intuitive Surgical Inc, a company endeavoring in the manufacture and distribution of robotic surgical devices. The company recently gained FDA approval for a lower-cost device. They have a clean balance sheet with a history of upside surprises against earnings expectations, and report again 7/20/17. Revenues increased nearly 14%, while EPS increased 32% compared to the Q1 '16 results. While liabilities decreased on a year-over-year basis, assets decreased by a larger margin. R&D spending increased 36%, and administrative costs rose 16%. Taxes were cut in half, although the revenues increased, due to modified accounting principles, and tax benefits for the employee share-based compensation.. The ratio of assets-liabilities decreased from 9.14 to 7.05, which is...
1 comment
Read more

AMGN STOCK WRITE UP

AMGN P/E: 16.1 GAAP EPS Y-O-Y GROWTH LAST QUARTER: $.22 SECTOR: HEALTH TECHNOLOGY ASSETS-LIABILITIES: 1.62 DIVIDEND: 2.54% Amgen is a leading biotech company with a solid financial foundation. It has managed to reduce its spending on research and development while increasing revenue through its sales of established drugs such as Enbrel, and Prolia. The company has several rapidly growing drugs that are newer to the market, with many drugs in the company's pipeline. In its last quarter, Amgen posted 7.7% revenue growth with 7.5% net income growth. The company spent less, however, in the most recent quarter when compared with the comparable quarter from the prior year, on research and development. The reduction in operating margin came from an increased interest expense in the quarter. Although the company spent less on research and development, its revenue did increase. Amgen is continuing to innovate despite reduced research and development b...
Post a Comment
Read more

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more