Analysts are expecting this travel company to grow by more than 15% annually over the next five years.
The Priceline Group Inc. (PCLN)
From Hendershot Investments
The Priceline Group Inc. (PCLN) reported third quarter revenues rose 20.1% to $4.4 billion with net income and EPS each more than tripling to $1.7 billion and $34.43, respectively, as last year’s results included a significant $941 million impairment of goodwill charge related to the OpenTable acquisition.
During the third quarter of 2017, the company’s global accommodation business booked 178 million room nights, up 19% from the prior year period. Booking.com had 1.5 million properties on its platform, up 41% over last year, which represents 26.9 million potentially bookable rooms, which management believes is the largest and most diverse selection of instantly bookable accommodations in the world. Third quarter gross travel bookings were $21.8 billion, an increase of 18% over a year ago. Gross profit increased 22% for the third quarter to $4.4 billion. Free cash flow increased 20% during the first nine months of the year to $3.3 billion with the company repurchasing $1.1 billion of its own shares during the same time period.
Long-term investors should consider booking a reservation with The Priceline Group, a HI-quality company with strong brands, excellent cash flows and robust long-term growth.
Ingrid R. Hendershot, Hendershot Investments, www.hendershotinvestments.com, 703-361-6130, December 26, 2017