This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Priceline, Orbitz Take Off

A pair of online travel agencies, priceline (PCLN) and Orbitz (ORBZ), announced fourth-quarter earnings that topped Wall Street estimates and showed much improvement from last year's results.

The strong reports came on the heels of InterActiveCorp's (IACI) bullish comments Monday on the travel business. Shares of priceline and Orbitz rallied in postclose trading Tuesday.

Priceline reported net income of $2.2 million, or 6 cents a share, topping the 4 cents expected by Wall Street and the net loss of $7.4 million, or 20 cents, it had a year ago. Net revenue, which excludes all fees and taxes as well as "Name Your Own Price" sales, came in at $180.2 million, down 8.7% from a year ago.

Gross travel bookings, which includes taxes and fees as well as the purchase price of travel, including those "Name Your Own Price" sales, came in at $256.2 million, a 12.2% increase from last year. Gross profit came in at $31.8 million, up 4.4% from last year, while gross margin rose to 17.7% from the year-ago 15.5%.

"The growth in total gross travel bookings and gross profit reflects a successful transition of our airline ticket business and a positive bottom-line financial result, before any new benefit from new airline ticket advertising," said Jeffery Boyd, priceline's CEO.

Indeed, priceline's move beyond airfare reaped some benefit in the fourth quarter. The company said that bookings of hotel rooms rose 37% year over year, while car rental sales rose 62%. That said, airfare sales continued their decline, dropping 18% year over year, which is an improvement from the drop of 40% seen in the first nine months of fiscal 2003.

Going forward, priceline said it was hopeful that the new pairing of William Shatner and Leonard Nimoy as company pitchmen would boost sales and reverse the slide in airfare sales. In the first quarter, the company said that earnings would come in between 6 cents and 10 cents a share, toward the high end of the 7-cent profit currently expected by Wall Street.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs