Cantor Fitzgerald analyst Naved Khan weighed in today with a few expectations on Priceline Group Inc (NASDAQ :PCLN), as the company is scheduled to report its fourth-quarter earnings results on Thursday, February 19 before the market opens. The analyst reiterated a Buy rating and a $1,350 price target on the stock.
Khan wrote, “We expect PCLN’s 4Q results to come in-line with our expectations and towards the high end of mgt’s guidance. This is supported by our checks of worldwide traffic and hotel pricing trends during the quarter, as well as a positive read-across from TripAdvisor and Expedia’s 4Q results. FX headwinds and a macro-impacted Europe may cause mgt to be cautious on its 1Q outlook, however. ”
The analyst continued, “We expect 1,808M (+17% Y/Y) in revenue, $1,642M (+23% Y/Y) in gross profit, $10.07 in adjusted EPS, and $669M in EBITDA vs. FactSet consensus of $1,801M/$1,626M/$10.10/$666M, respectively. Guidance is for 11-18% Y/Y growth in revenues, 17-24% Y/Y in gross profit, $9.50-10.10 in adjusted EPS, and $625-665M in EBITDA. We expect FX to result in a negative $59M impact on bookings, $8.5M on gross profit, and a $0.06 hit to EPS.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Naved Khan has a total average return of 21.2% and a 73.7% success rate. Khan has a 30.6% average return when recommending PCLN, and is ranked #275 out of 3476 analysts.