Guy Adami: Priceline Earnings, Sandbagging on Guidance?

”It feels like they’re sandbagging,” says Fast Money trader Guy Adami, “the metrics appear better than the guidance.”

Adami is referring to the latest results from Priceline, in which the company predicted fourth-quarter earnings of $4.90 to $5.00 per share, which was below analysts' average forecast for $5.13. Priceline shares fell 0.7 percent to $505.31 in after-market trading.

”But otherwise, the quarter was outstanding," explains Adami. In a benign tape I think the stock will push toward $550,” he says.

Fred Moran, analyst at The Benchmark Company agrees. "The growth rates are stellar," he says. "Priceline looks compelling."

"I know the trade has worked for a really long time, but I just can't get comfortable with it," counters value investor Karen Finerman. "It trades at a multiple that I could never get behind."

Looking at Priceline earnings a little more closely, the online travel agency said its third-quarter profit was $469 million, or $9.17 per share, compared with $223 million, or $4.41 per share, a year ago.

Excluding one-time items, Priceline reported a profit of $9.95 per share, beating a consensus forecast of $9.30 per share, according to Thomson Reuters I/B/E/S.

The company reported revenue of $1.45 billion, up 45 percent from a year ago and topping a Wall Street forecast for $1.42 billion, according to Thomson Reuters I/B/E/S.

The value of bookings at Priceline was $6.3 billion, an increase of 56.2 percent over a year ago.

Priceline predicted a year-over-year increase in travel bookings of 39 percent to 44 percent for the fourth quarter.

* You can find our conversation about Priceline about 8 minutes into this video clip.







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Trader disclosure: On Nov 7, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Terranova is long CAT; Terranova is long CVI; Terranova is long VRTS; Terranova is long APC; Terranova is long F; Terranova is long EMC; Terranova is long AAPL; Terranova is long IBM; Terranova is long JOYG; Terranova is long LULU; Finerman owns AAPL; Finerman owns BAC; Finerman owns MSFT; Finerman owns GOOG; Finerman’s firm owns AAPL short calls; Finerman’s firm owns JPM; Finerman’s firm owns YHOO short calls; Finerman’s firm owns IBM short calls; Finerman’s firm owns MSFT

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