Shares of discount rates for travel-related purchases such as airline tickets and hotel stays, Priceline Group Inc. (NASDAQ: PCLN) surged over 5 percent on Tuesday after the company posted positive fourth quarter earnings of $14.21 per share on revenues of $2.35 billion. Analysts’ were expecting EPS of $13.01 on revenues of $2.32 billion. Gross bookings posted were $15.11 billion, topping analysts’ expectations of $14.57 billion.
“The Priceline Group finished 2016 with a strong 4th quarter, reporting accelerating growth in hotel room nights booked, with solid organic growth and attractive profit margins,” said Glenn Fogel, Chief Executive Officer of The Priceline Group. “We also recorded accelerating growth in room nights booked for the full year 2016 over 2015, which reflects the benefits of our scaled accommodations platform and strong execution by our global teams.”
Looking forward to 2017, Mr. Fogel said, “We will continue to focus on growing our supply base to drive customer choice, innovating around the customer experience and investing efficiently in marketing to deliver profitable topline growth.”
For the full-year 2016, the Group had gross travel bookings of $68.1 billion, a 23 percent increase compared to 2015 (approximately 25 percent on a constant-currency basis). The Group’s gross profit in 2016 was $10.3 billion, a 20 percent increase from the prior year (approximately 23 percent on a constant-currency basis). International operations contributed full-year gross profit of $9.1 billion, a 22 percent increase versus the prior year (approximately 25 percent on a constant-currency basis).