Online travel agency Priceline.com Inc(NASDAQ:PCLN) posted better than expected results for the third quarter mainly because of spectacular performance in the Europe region.
The travel agency known for its name-your-own-price auction has its European travel site Booking.com to thank for a successful quarter.
International revenue jumped 31 percent to $1.2 billion dollars, while total revenue rose 17 percent to $1.71 billion, lower than analysts’ expectations of $1.65 billion.
Net income of the company rose from $469.5 million or $9.17 a share in the third quarter last year to $596.6 million or $11.66 a share. After adjustments, Priceline.com’s earnings work out to $12.40 a share, higher than Street estimates of $11.81 a share.
Shares of PCLN are having solid run up and gained 10.73% to $649 on hefty volume.
Another travel related company Tripadvisor Inc(NASDAQ:TRIP) also posted better than expected results for the third quarter as the site drew more eyeballs, bringing in higher advertising revenue.
Traffic to the website which aggregates travel related information like re views and opinions about travel destinations and accommodation rose by a third according to CEO Stephen Kaufer.
Revenue from click based advertising, which forms 80 percent of total revenue, rose 15 percent to $168 million. Revenue jumped 18 percent to $212.7 million.
Net income increased to $59.4 million or 41 cents a share from $53 million or 37 cents a share in the year ago period. Earnings after adjustments are 46 cents a share. Analysts had expected the company’s adjusted profits to be 42 cents a share on $211.3 million revenue.
Shares of the company, company which was spun off from Expedia gained 21.39% to $35.72 on hefty volume.