Before the opening bell on Thursday, Priceline (PCLN) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside PCLN's Results
The company reported earnings of $451.83 million, or $8.56 per share, up from $378.08 million, or $7.14 per share, a year ago. Excluding special items, earnings were $10.85 per share – above analysts’ view of $10.10 per share.
Revenue increased to $1.84 billion from $1.54 billion. Analysts expected to see $1.80 billion in revenue.
Looking forward to the first quarter, PCLN expects to see EPS between $5.25 and $5.80 per share. Adjusted earnings are expected to be between $7.20 and $7.75 per share. Analysts expect to see Q1 EPS of $8.52.
Growing With Acquisitions
Priceline is the largest U.S. online travel company and has continued to grow by making several acquisitions including Kayak and Booking.com. This acquisitions have helped the company shed competition. Similarly, Priceline’s competitor Expedia (EXPE) recently announced that it will acquire Orbitz.
Priceline has also benefited from strong international sales. The company currently obtains 70% of its revenue from outside of the U.S. Priceline expects international revenue to grow by 2%-9% in the first quarter.
Mutual Funds to Watch
For investors seeking exposure to PCLN, there are several mutual funds that have the company as a holding. Below are three mutual funds that currently own the largest stakes in PCLN.
|PRGFX||T. Rowe Price Growth Stock||2.20%|
|VTSMX||Vanguard Total Stock Market Index||1.72%|
The Bottom Line
The funds above allow investors to gain exposure to PCLN, while still remaining diversified. Investors interested in PCLN may also be interested in Expedia (EXPE).