Priceline.com Inc.

Company Description

Priceline.com is a web-based discount travel service. The company allows customers to choose their own prices on air fare, hotels, and other vacation related services. Priceline.com gives providers of the aforementioned services incremental income by booking vacancies that may have otherwise gone unfilled.

Book It

On Aug 10 Priceline booked yet another double-digit earnings surprise. Earnings per share came in at $1.81, 19 cents or 12% higher than the Zacks Consensus Estimate. This was the fourth consecutive surprise by at least 10%.

Gross bookings climbed 13% to $2.4 billion on a year-over-year basis. Revenues came in at $604 million, 18% higher than one year go. This was a nice surprise as reports continue to highlight weak consumer spending.

Estimates Spike

Over the past month the 9 analysts polled by Zacks have supplied 11 upward revisions for both 2009 and 2010. The Zacks Consensus Estimate for this year rose 39 cents to $6.69.

Forecasts for next year are up to $7.86, from $7.25. These levels represent year-over-year growth of 31% and 18%, respectively.

The Chart

Shares of PCLN have been setting new 52-week highs all summer and the latest surprise as pushed the bar even further. Shares gapped up significantly but are showing signs of stabilizing.

If the stock falls through the post-earnings price, look for it to retrace back to pre-earnings level before climbing again.