Priceline.com Incorporated

It wouldn’t be far fetched to say that Priceline.com Incorporated (PCLN - Analyst Report) embodies aggressive growth. Its share price has increased from about $100 per share in the beginning of this year to Tuesday’s closing share price of $123.06. This during a time when most companies have struggled. PCLN boasts a much more bullish share price increase over a full-year period as its share price more than doubled its March 19, 2007 level of $54.20 per share. The company’s fundamentals spell out aggressive growth also as evidenced by fourth-quarter net income of $32.9 million, versus the year-prior $13.2 million.

Full Analysis

Priceline.com Incorporated operates as an online travel company in the United States and Europe. It offers its services under the Name Your Own Price' brand, which allows its customers to make offers for travel services at discounted prices.

It wouldn’t be far fetched to say that Priceline.com embodies aggressive growth. Its share price has increased from about $100 per share in the beginning of this year to Tuesday’s closing share price of $123.06. This during a time when most companies have struggled. PCLN boasts a much more bullish share price increase over a full-year period as its share price more than doubled its March 19, 2007 level of $54.20 per share.

The company’s fundamentals spell out aggressive growth also as evidenced by fourth-quarter net income of $32.9 million, versus the year-prior $13.2 million. PCLN’s fourth-quarter report, which was released in mid-February, sent its share price soaring thanks to strong results such as revenue that grew 28.8% from last year to $334.9 million. Other positive results included a gross profit total that jumped 61% to $160.2 million, and net income that ascended to $32.9 million from $13.2 million.

Priceline also reported impressive growth statistics from its international engagements, and solid growth from its domestic activities. Priceline President and CEO Jeffry Boyd noted that gross bookings, a key metric in evaluating company performance, grew in its international engagements by 113% year-over-year, while its domestic growth rate grew sequentially to 24.2%, driven by retail airline bookings.

Not only did Priceline report a great quarter, but they also provided investors with some very upbeat, optimistic guidance moving forward. The company said it expects first quarter 2008 results to include year-over-year increases in international gross travel bookings of approximately 85% to 90% and year-over-year increase in revenue of approximately 30%.

Analyst estimates have been rising for the company. Full-year 2008 forecasts of $4.77 per share stand above the two months-ago level of $4.50. The most accurate 2008 projection is a much more bullish $5.04.