Upcoming AWS Coverage on FLEETCOR Technologies Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 25, 2017 / Active Wall St. announces its post-earnings coverage on The Priceline Group Inc. (NASDAQ: PCLN). The Company released its first quarter fiscal 2017 financial results on May 09, 2017. The online booking service reported better than expected earnings results. Register with us now for your free membership at:

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One of Priceline Group's competitors within the Business Services space, FLEETCOR Technologies, Inc. (NYSE: FLT), reported on May 01, 2017, its financial results for its first quarter ended March 31, 2017. AWS will be initiating a research report on FLEETCOR Technologies in the coming days.

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

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended March 31, 2017, Priceline reported revenues of $2.42 billion, up 12.6% compared to revenue of $2.02 billion in Q1 2016. The Company's revenues missed analysts' consensus estimates of $2.43 billion.

Priceline's Q1 2017 gross travel bookings, which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were $20.7 billion, an increase of 24% on a y-o-y basis, or approximately 27% on a constant-currency basis.

Priceline's gross profit for Q1 2017 was $2.3 billion, a 16% increase on a y-o-y basis. Gross profit as a percentage of gross bookings for Q1 2017 was 84 bps lower on a y-o-y basis. The decrease was largely attributed to book-versus-stay time lag, impacted by Easter shifting to Q2 2017 and an expanding booking window. International operations contributed gross profit of $2.0 billion in the reported quarter, a 17% increase compared to the year ago same period. Gross profit for its US operations amounted to $315 million, which grew about 6% compared to the prior year.

Priceline's GAAP operating income grew by 1% to $556.46 million, and GAAP operating margins decreased by 341 bps on a y-o-y basis. The Company's adjusted EBITDA for the reported quarter was $635 million, a 4% increase versus a year ago.

For Q1 2017, Priceline's net income was $456 million, or $9.11 per diluted share, both up 22% on a y-o-y basis. The Company's non-GAAP net income in the reported quarter was $9.88 per diluted share, a 7% increase versus $9.20 per diluted share in the year ago comparable period. The Company's earnings numbers surpassed Wall Street's expectations of $8.83 per share.

Segment Results

During Q1 2017, Priceline's Merchant revenues totaled $442.05 million, down 6.3% on a y-o-y basis. The Company's Agency revenues surged 19% on a y-o-y basis to $1.79 billion. For Q1 2017, Priceline's Advertising & Other revenue, which is mainly comprised of non-intercompany revenues for KAYAK and OpenTable, grew by 8% to $192.05 million.

For Q1 2017, Priceline's room nights booked grew by 27% despite a challenging prior year growth comp. Rental car days growth also accelerated to 15% in Q1 2017 compared to 14% in Q4 2016. Average daily rates for accommodations, or ADRs, were up approximately 1% for the reported quarter versus the prior year on a constant-currency basis for the consolidated group.

Balance Sheet

Priceline generated $381 million of cash from operations during Q1 2017, which is an increase of about 10%. The Company made a prepayment of income taxes in the Netherlands in Q1 2017 to earn a prepayment discount, which negatively impacts operating cash flow for Q1, but will benefit subsequent quarters when the taxes would have otherwise been due.

During the reported quarter, the Company returned $212 million to its shareholders through share buybacks. Priceline's cash and investments amounted to $15.5 billion at March 31, 2017, with about $2.3 billion of that balance in the US.

Outlook

During Q1 2017, Priceline is forecasting booked room nights to grow by 16% to 21% and total gross bookings to grow by 12% to 17% in US dollars and by 15% to 20% on a constant-currency basis. For Q2 2017, adjusted EBITDA is expected to range between $860 million and $905 million, which at the midpoint is up 9% versus prior year. The Company is forecasting GAAP EPS in the range of $12.55 to $13.25 per share for Q2 2017. The Company is estimating non-GAAP fully diluted EPS of approximately $13.30 to $14 per share, which at the midpoint is up by about 8% versus the prior year.

Stock Performance

On Wednesday, May 24, 2017, the stock closed the trading session at $1,848.74, climbing 1.14% from its previous closing price of $1,827.94. A total volume of 408.72 thousand shares have exchanged hands. Priceline Group's stock price soared 12.92% in the last three months, 21.29% in the past six months, and 47.12% in the previous twelve months. Furthermore, on a year to date basis, the stock surged 26.10%. Shares of the company have a PE ratio of 41.75 and currently have a market cap of $90.94 billion.

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SOURCE: Active Wall Street