Expedia Results Seen As Positive Indicator For Priceline Earnings Beat
NEW YORK (TheStreet) -- Expedia's (EXPE) - Get Expedia Group, Inc. Report better than expected results and comments indicate that Priceline's (PCLN) results will also beat the consensus outlook, research firm Oppenheimer wrote in a note to investors today.
WHAT'S NEW: Last night, Expedia reported third quarter adjusted earning per share of $1.93 on revenue of $1.71B, beating the consensus estimates of $1.74 and $1.68B, respectively. Afterward, Oppenheimer analyst Manish Hemrajani noted that Expedia said it did not see any major negative impact either from macro economic weakness in Europe or Ebola concerns. The number of rooms booked at hotels on Expedia jumped 24% last quarter, versus the same period a year earlier, the analyst noted. Expedia's data and comments indicate that Priceline's Q3 results will beat analysts' consensus expectations, Hemrajani stated. Moreover, Priceline's results could exceed Hemrajani's estimates, which are above the consensus outlook, the analyst believes. He kept a $1,400 price target and Outperform rating on Priceline.
WHAT'S NOTABLE: Priceline is scheduled to report on its own third quarter financial results on next Tuesday, November 4.
OTHERS TO WATCH: Other companies in the sector include Orbtiz (OWW) , Tripadvisor (TRIP) - Get TripAdvisor, Inc. Report and Travelzoo (TZOO) - Get Travelzoo Report .
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PRICE ACTION: In early trading, Priceline.com rose 3.5% to $1,187, Expedia advanced 3.8% to $83.78, Orbitz advanced 1.5% to $8.35, Tripadvisor gained 3.4% to $89.22, and Travelzoo rose 2.8% to $12.93.
Reporting by Larry Ramer.
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