) is set to report fourth-quarter 2013 results on Feb 20. Last
quarter, it posted a 6.6% positive surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
Priceline's share gains in both domestic and international
markets led to higher sales growth rates in the third quarter of
2013. Also, overall bookings were up 6.4% sequentially and 37.4%
year over year, reflecting improving demand environment. Gross
margins expanded in the quarter, driven by higher revenues,
increase in hotel room nights and improving average daily rates
in the hotels business.
For the fourth quarter, Priceline expects revenues to increase
19-26% year over year, and pro-forma earnings per share within
$7.80-$8.30. The Zacks Consensus Estimate for the fourth quarter
is pegged at $7.66.
Our proven model does not conclusively show that Priceline.com
will beat earnings this quarter. This is because a stock needs to
have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at $7.66. Hence, the difference is 0.00%.
Priceline's Zacks Rank #2 (Buy) when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Westlake Chemical Corp.
), with Earnings ESP of +4.50% and a Zacks Rank #1 (Strong
Ship Finance International Limited
), with Earnings ESP of +52.63% and a Zacks Rank #1
), with Earnings ESP of +13.59% and a Zacks Rank #1
PRICELINE.COM (PCLN): Free Stock Analysis
PROASSURANCE CP (PRA): Free Stock Analysis
SHIP FIN INTL (SFL): Free Stock Analysis
WESTLAKE CHEM (WLK): Free Stock Analysis
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