Priceline.com (PCLN) Surges On "Blowout" Quarter

Shares of travel website Priceline.com Inc. (Nasdaq: PCLN) are surging 14% higher, and nearing a new 52-week high, following better-than-expected second quarter earnings and guidance this morning. The company said leisure travel demand for the summer peak season has been stronger than expected, despite the difficult economic climate.

Priceline.com reported Q2 EPS of $2.02 versus $1.55 last year and the analyst estimate of $1.75. Revenue for the quarter rose 17.5% to $603.7 million, versus the consensus of $575.12 million. Priceline.com sees an increase in Q3 revenue of approximately of 19% to 23% and expects Q3 EPS to be between $2.70 to $2.85 versus consensus of $2.52.

Analyst at Bechnmark, which smartly upgraded the stock to Buy just last week, raised their price target on PLCN after the results to $190 from $147 calling the results a "blowout." The firm also raised 2009 and 2010 estimates.

Kaufman Bros, which also had a Buy rating into the results, raised their price target on PCLN to $180. They were excited about the international bookings which re-accelerated to 32% y/y on a currently neutral basis vs. 23.5% y/y last quarter.

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