Priceline.com jumps 5.7% after beating analysts’ estimates

The worlide economic crisis last five years dont seem to reflect in Priceline.coms performance as its stock neared a $1,000 price and a record that was set during the dot-com bubble.

Priceline, the largest U.S. online-travel agent by market value, advanced 5.7% to $987.40 in extended trading after reporting second-quarter sales that exceeded analysts’ estimates. On a split-adjusted basis, the stock hit its all-time high of $990 on April 30, 1999.

Since purchasing Amsterdam-based Booking.com 8 years ago, Priceline has relied on the European hotel reservation business for the most of its growth. Despite the weakening economies of Spain, Greece, Ireland and Portugal requiring bailouts during Europe’s financial crisis that began in 2009, Priceline has recorded gains of its overseas business. International bookings surged 44% in the second-quarter from a year earlier, accounting for 85% of total bookings.

“When macroeconomic conditions were at their worst in the past year or so, Priceline’s international hotel business, the majority of which is in Europe, displayed extraordinary resiliency,” said to Bloomberg Thomas White, an analyst at Macquarie Capital USA in New York, who has the equivalent of a “buy” rating on the stock. “The business has held up well through this and seemed to have emerged from the worst.”

Revenue of the companys second quarter raised 27% to $1.68 billion from $1.33 billion a year earlier, the tourist accommodation site company said yesterday. Analysts on average had projected sales of $1.66 billion,according to Bloomberg.

International bookings reached to $8.6 billion from $6 billion a year earlier. Priceline’s main rival isnt doing so well. Expedia Inc. reported Q2 profit and revenue last month that missed analysts’ estimates, leading to a 27% plunge in the stock, the steepest in eight years.

Priceline’s revenue in the third quarter will increase in the range of 23% to 30%, the company said. Analysts on average expect sales to rise 29 percent to $2.2 billion,

To diversify its business, Priceline acquired travel search engine Kayak Software Corp. for $1.8 billion in a deal that closed in May. Expedia is also competing in that market after buying a $630 million majority stake in Germany’s Trivago earlier this year.