) is set to report second-quarter 2014 results on Aug 11. Last
quarter, the company posted a 13.3% positive surprise. Let's see
how things are shaping up for this announcement.
Factors to Consider this Quarter
Priceline's first-quarter earnings beat the Zacks Consensus
Estimate by 83 cents or 13.3%, driven by strong growth in the
online travel industry. Revenues of $1.64 billion were up
sequentially as well as on a year-over-year basis, attributable to
share gains in both domestic and international markets. Kayak
remained a major contributor. Also, overall bookings increased
34.4% sequentially and 34.2% year over year, reflecting improving
Margins were, however, affected in the quarter due to an
For the second quarter, Priceline expects revenues to increase
19-29% year over year, and pro-forma earnings per share within
$11.22-$12.02. The Zacks Consensus Estimate for the quarter is
pegged at $11.33.
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 $11.33. 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:
Cooper Tire & Rubber Co. (
), with an Earnings ESP of +1.69% and a Zacks Rank #1 (Strong Buy).
Myriad Genetics Inc. (
), with an Earnings ESP of +4.35% and a Zacks Rank #1.
Callon Petroleum Company (
), with an Earnings ESP of +5.88% and a Zacks Rank #1.
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PRICELINE.COM (PCLN): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
COOPER TIRE (CTB): Free Stock Analysis Report
CALLON PETE-DEL (CPE): Free Stock Analysis
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