Upcoming AWS Coverage on S&P Global Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 15, 2016 / Active Wall St. announces its post-earnings coverage on The Priceline Group Inc. (NASDAQ: PCLN) ("Priceline"). The company posted its financial results for the third quarter fiscal 2016 on November 07, 2016. The online travel site reported a steep decline in GAAP net income on a $941 million impairment charge; however the company's adjusted earnings and sales numbers came in above Wall Street's expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Priceline Group's competitors within the Business Services space, S&P Global, Inc. (NYSE: SPGI), reported on November 03, 2016, its third quarter 2016 results. AWS will be initiating a research report on S&P Global in the coming days.

Today, AWS is promoting its earnings coverage on PCLN; touching on SPGI. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=PCLN

http://www.activewallst.com/registration-3/?symbol=SPGI

Earnings Reviewed

For the three months ended on September 30th, 2016, Priceline reported revenue of $3.69 billion, increasing 22% from the year ago period and approximately 23% on a constant-currency basis, beating analysts' estimates of $3.62 billion. The company's net income in Q3 2016 was $506 million, a 58% decrease versus the prior year. Net income was $10.13 per diluted share, a 57% decrease compared to the prior year. Net income and net income per diluted share for the reported quarter were negatively impacted by a non-cash charge of $941 million relating to an impairment of OpenTable's goodwill. On an adjusted basis, the company's net income surged 20% to $1.6 billion. On a diluted per share basis net income came in at $31.18, a 23% increase compared to $25.35 per diluted share a year ago. Analysts were projecting Q3 2016 adjusted net income of $29.92 per diluted share. Adjusted EBITDA for Q3 2016 was $1.9 billion, an increase of 19% versus a year ago.

Bookings Increase

For Q3 2016, Priceline reported that gross travel bookings for Priceline Group, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by its customers, net of cancellations, totaled $18.5 billion, soaring 25% over a year ago (approximately 26% on a constant-currency basis). The Group's gross profit for Q3 2016 was $3.6 billion, a 22% increase from the prior year. International operations contributed gross profit in Q3 2016 of $3.3 billion, a 25% increase versus a year ago. Priceline reported that room night growth accelerated to 29% compared to 24% in Q2 2016. Rental car day growth also advanced 13% in Q3 2016 compared to 8% in Q2 2016. Average daily rates for accommodations, or ADRs, were down by less than 1% for Q3 2016.

Balance Sheet

As of September 30th, 2016, Priceline reported cash, cash equivalents, restricted cash, and short-term investments on the books totaled $4.38 billion versus $2.65 billion at the end of 2015. The company generated $1.5 billion of cash from operations, during Q3 2016, approximately 15% above the last year's numbers. For Q3 2016, Priceline repurchased 144,000 shares of its common stock for $199 million. CAPEX for the quarter amounted to $54 million.

Priceline.com CEO

In a separate press release on the same day, Priceline Group announced that Priceline.com's current interim Chief Executive Officer, Brett Keller, has been named Chief Executive Officer of priceline.com, effective immediately. Mr. Keller will report to Jeffery H. Boyd, Interim CEO and Chairman of the Board for The Priceline Group. Mr. Keller was named interim CEO of Priceline.com in June 2016 after serving as Chief Operating Officer of the business, and prior to that, Chief Marketing Officer. Keller joined priceline.com in 1999 and over the past 17 years has played a central role in evolving the brand's product and go-to-market strategies for its diverse digital offerings.

Outlook

For Q4 2016, Priceline is forecasting booked room nights to grow by 20% to 25% and total gross bookings to grow by 16% to 21% in U.S. dollars and by 17% to 22% on a constant currency basis. The company expects gross profit to grow by 13% to 18% in U.S. dollars and by 14% to 19% on a constant currency basis and adjusted EBITDA to range between $755 million and $795 million. Priceline is projecting GAAP EPS between $11.40 and $12.00 per share for Q4 2016, which at the midpoint is up about 17% versus the prior year. The company is targeting Q4 non-GAAP fully diluted EPS of approximately $12.20 per share to $12.80 per share which at the midpoint is up about 17% versus the prior year.

Stock Performance

At the closing bell, on Monday, November 14, 2016, Priceline Group's stock fell 3.34%, ending the trading session at $1489.18. A total volume of 801.55 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 454.84 thousand shares. In the last month and previous three months, shares of the company have advanced 3.45% and 5.72%, respectively. Moreover, the stock gained 16.80% since the start of the year.

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SOURCE: Active Wall Street