Can Priceline.com Inc (PCLN) Move Higher?

Likewise, as these online-travel powerhouses continue to make their services available to consumers’ mobile devices, it is likely that they will also see an upward spike in bookings across the board.

Priceline plans to report its first-quarter 2013 earnings on May 9. Analysts expect Priceline to report a 23% year-over-year increase in sales, backed by strong travel demand in North America and its growing presence in emerging markets.

Priceline’s success can be evaluated by its strong revenue trend in the last five years. Its revenue has grown from around $1.4 billion in 2007 to more than $5.2 billion in 2012, an impressive steep-looking CAGR of more than 30%.

Analysts expect that the company still has more growth opportunities in Europe. One approach Priceline.com Inc (NASDAQ:PCLN) has taken in this regard is to grow its business through acquisitions in the key European markets. For instance, since the acquisition of Bookings.com, Priceline has seen a steady increase in its market share and revenue generated from Europe.

As growth in the North American travel market starts to slowdown, online-travel agencies are looking to other promising regions, such as Europe and Asia, for their growth opportunities. By reading the market trends early, Priceline has successfully expanded its presence in regions that hold the key to its future earnings growth.

The bottom line

While Priceline.com Inc (NASDAQ:PCLN) does not currently pay a dividend to its investors – and the company’s shares are already hovering near their 52-week high – analysts expect future percentage growth in the share price over the next 12 months in the high double-digit range. Not a bad payoff for shareholders – especially if they can use their earnings to book a discounted vacation.

The article Are Priceline’s Shares Headed Higher? originally appeared on Fool.com.

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