Priceline.com (NASDAQ: PCLN), the second-biggest online travel agency, is scheduled to release its third-quarter earnngs after the closing bell on Monday, November 8, 2010. Analysts, on average, expect the company to report earnings of $1.66 a share on revenue of $597.20 million. In the year ago period, the company posted earnings of $1.09 per share on revenue of $462.06 million.
Priceline.com Incorporated operates as an online travel company principally in the United States, Europe, and Asia. It provides various travel services, including airline tickets, hotel rooms, car rentals, vacation packages, cruises, and reservation services. The travel industry is continuing to utilize online services to outsource the excess capacity and the company's profitability has expanded rather significantly.
In the preceding third quarter, the Norwalk, Connecticut-based company's net income was $115.0 million, or $2.26 per share, from $67.0 million, or $1.38 per share, in the corresponding quarter last year. On an adjusted basis, the company earned $3.09 a share in the latest quarter. Revenue rose 27.1% to $767.4 million. Analysts, on average, expected the company to report earnings of $2.65 per share on revenue of $733.04 million.
At its last earnings call in July, the company said that it expects third quarter GAAP net income in the range of $4.06 to $4.26 per share, pro forma earnings in the range of $4.78 to $4.98 per share, and revenue growth in the 29% to 34% range. Priceline expects the total value of its travel bookings to rise 33 percent to 38 percent in the third quarter.
The company has benefited from the growing trend of online transactions, strong international growth and recovery in travel demand. The company bulk generates bulk its revenues from Europe. The company's results are also likely to get a boost from the May acquisition of car- service company TravelJigsaw, which added $43.9 million in gross travel bookings in the second quarter.
In terms of stock performance, Priceline.com shares have gained nearly 73 percent over the past year.
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