) is set to report first-quarter 2014 results on May 8. Last
quarter, the company posted 5.0% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors this Past Quarter
Priceline's fourth-quarter earnings exceeded the Zacks
Consensus Estimate by 42 cents or 5.5%, driven by strong growth
in the online travel industry. Revenues of $1.54 billion were
down sequentially but up on a year-over-year basis, attributable
to share gains in both domestic and international markets. Also,
overall bookings were up 38.8% year over year, reflecting
improving demand environment.
Margins were, however, affected in the quarter due to lower
For the first quarter, Priceline expects revenues to increase
15-25% year over year, and pro-forma earnings per share within
$6.35-$6.85. The Zacks Consensus Estimate for the quarter is
pegged at $6.26.
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 $6.26. Hence, the difference is 0.00%.
Priceline has a Zacks Rank #3 (Hold) which when combined with a
0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
You could consider other stocks with a positive Earnings ESP
and Zacks Rank #1, 2 or 3 such as:
Advanced Energy Industries, Inc.
), with Earnings ESP of +10.00% and a Zacks Rank #1 (Strong
Vulcan Materials Company
), with Earnings ESP of +5.88% and a Zacks Rank #1.
), with Earnings ESP of +2.70% and a Zacks Rank #1.
ADV ENERGY INDS (AEIS): Free Stock Analysis
PRICELINE.COM (PCLN): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
VULCAN MATLS CO (VMC): Free Stock Analysis
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