PCLN - Is this stock every going to rally?
riceline (PCLN-$60-Outperform)Analyst: Mary Meeker
- PCLN pre-released positive CQ4:99 results, with revenue of $168MM vs. our
$154MM estimate and gross profit of $23MM vs. our $19MM estimate. Gross
margins were 13.5% (a record high for PCLN), slightly ahead of our 13%
estimate. New customer adds were north of 900,000 vs. our 850,000 estimate.
- PCLN plans to enter the person-to-person auction market in CQ1 and the B2B
market in H2:00. Additionally, Priceline plans to launch SouthEast Asian,
European, and Australian JVs in January, along with rental cars, cruises, and
telecommunication services in CQ1. In H2:00, Priceline will launch vacation
packages, term life insurance, electronics, and JVs in Latin America andJapan.
- PCLN is showing strong momentum in travel services -- in November, PCLN
booked several 70,000 tickets sales weeks -- its highest ticket sales levels
to date. |
