Priceline Group Inc.’s share price up, posts upbeat Q2 profit, keeps focus on growth

Shares of Priceline Group Inc., the biggest US online travel agent, gained today, as the company reported earnings over the second quarter of 2014, to log profit well above analysts expectations.

According to the statement of the company its profit, excluding some items, was $12.51 per share, beating forecasts of $12.02 a share. Priceline Group also shared that its revenue increased by 26% and reached $2.12 billion in comparison to analysts projections of $2.15bn.

“We believe the group delivered market-leading growth from both a top line and profitability perspective,” Darren Huston, Priceline president and CEO, said in a statement Monday morning. “Globally, our accommodation business booked 90 million room nights, up 29% over the same period last year.”

The online travel agent also projected its earnings over the third fiscal quarter to range between $19.60 and $21.10 a share.

“We will continue to build our franchise by investing in customer experience, content expansion and market penetration,” CEO Huston added, signaling the companys commitment to growth.

The company has been expanding its reach recently. A minority investment of $500 million in the biggest travel website in China – Ctrip.com Intenational Ltd was made by Priceline Group Inc. last week.

“Priceline is the best executor in the online travel space,” Tom White, analyst at Macquarie Capital USA Inc., said for Bloomberg. “The secret to Priceline’s success is the way they approached the international hotel market.”

Priceline Group Inc. was 2.61% up to trade at $1 315 dollars per share at 14:56 BST, marking a one-year change of +35.58%. According to the information published on CNN Money, the 26 analysts offering 12-month price forecasts for Priceline Group Inc. have a median target of $1 475.00, with a high estimate of $1 575.00 and a low estimate of $1 200.00. The median estimate represents a +12.17% increase from the last price of $1 314.95.