Norwalk, Conn.-based Priceline (PCLN) said it earned $2.02 a share, excluding special items such as stock-based compensation, in the second quarter. That's up 30% from the year-earlier quarter and way above the $1.75 consensus estimate of 15 analysts polled by Thomson Reuters.
Rivals Orbitz (OWW) and Expedia (EXPE) recently reported second-quarter earnings that shattered analyst views by 16 cents and 7 cents, respectively, but their results continue to lag Priceline's. Orbitz saw its sales fall 19% from a year earlier, while Expedia's sales fell 3% and profit fell 5%.
Part of the reason why these companies are successful is they are generally pretty good at delivering low prices. However, people are buying from these companies. I find that point very interesting given the current environment.