Chinese Travel Shares Soar On Priceline Results (PCLN, EXPE, CTRP, LONG, UTA, SVN, HMIN)
Online travel booking firm Priceline.com (PCLN) shot ahead by 20% on Wednesday after the company announced its second quarter results, spurring a sympathy rally in the Far East. Priceline’s Q2 net income surged by more than 70% to $115 million or $2.26 per share, from $67 million or $1.38 per share in the same period last year. Excluding certain expenses, adjusted EPS came to $3.09, easily topping analysts’ $2.65 consensus. Revenue was up 27% to $767.4 million year-over-year, and the company said it will rise between 29% and 34% in the current quarter.
The report served well to spur a rally for competitor Expedia (EXPE) and other players in various segments of the domestic travel industry. Meanwhile, the Chinese Travel Stocks Index is up by 3% on the day with sparse news from individual components.
Ctrip.com International (CTRP) is ahead by 4% on the news while competitor eLong (LONG) is gaining only fractionally. The former will report its second-quarter results after Monday’s close. Travel booking small-cap Universal Travel (UTA) is also among the segment’s top performers for the session, up by more than 5%.
In the hotel segment, 7 Days Group Holdings (SVN) and Home Inns & Hotels (HMIN) are both up by more than 3% in the rally. Both will report their quarterly results later this month, so it will be interesting to see if today’s knee-jerk sympathy rally is justified based on Priceline results.
Investors can track the Chinese Travel Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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