Priceline Group, the world's leading provider of online travel & related services, will release Q3 earnings after the market close today.
Analysts are expecting to see EPS of $34.25 per share and revenue of $4.43 billion.
Key Points from Last Quarter:
- Gross profit for the quarter was $3.0 Bln a 21% increase year over year
- Booking.com rental growth rate grew 50% YoY at 721K vacation rental properties.
- OpenTable is meeting and exceeding expectations including site visitors.
- Rental car growth of 11.7% YoY
- Reported Q2 earnings of $15.14 per share, excluding non-recurring items, $0.92 better than the Capital IQ Consensus of $14.22
- Gross bookings grew by 16.4% YoY
Based on PCLN options, the current implied volatility stands at ~ 30%, which is 116% higher than historical volatility (over the past 30 days). Based on the Weekly Nov10 PCLN $1900 straddle, the options market is currently pricing in a move of ~6% in either direction by weekly expiration (Friday).
Technically, PCLN has been chopping below its last earning's bearish gap zone with October resistance around 1950.
If earnings disappoint, then look for Sellers to press price down to the 200-day ma zone at around 1820, and its multi-month support between the 1775/1800-levels. If that cannot hold, then look today's the 1700-level where the late-Feb bullish gap is in play. (This type of move would coincide with a head and shoulders pattern currently in play).