Priceline's stock surged more than 10 percent in trading Friday as investors got behind the company's strong second-quarter earnings report and raised third quarter guidance that easily surpassed analyst's expectations.
Priceline (NASDAQ: PCLN) jumped 10.20 percent in mid-day trading to 532.65, up $49.31.
The online travel deal site said after the market close Thursday its second-quarter revenue jumped 44 percent to $1.1 billion, beating analyst forecasts of $1.08 billion. Priceline's per-share profit less items jumped 78 percent to $5.49, 58 cents above Wall Street's expectations.
Priceline attributed the big jump in profits to growing international travel business. Also, airline ticketing was at its highest level in the last six quarters, rising 7.3 percent from the same period in the previous year.
But Wall Street seemed most excited by Priceline's guidance for the third quarter. The company said it expects third-quarter earnings of between $9.10 and $9.30 per share minus items, easily topping analyst expectations of $7.98.
Priceline anticipates an increase in sales in the third-quarter of between 37 percent and 42 percent, while Wall Street anticipates 36 percent.
The company's stock trading in heavy volume on Friday, with more than three million shares traded against an average daily volume on just more than one million shares. Priceline trades at a price-to-earnings ratio of 47.02.