What Recession? Priceline Posts Blowout Q2 Profits

Well, apparently Americans are still going on vacation.

Priceline (PCLN) this morning posted Q2 revenue of $603.7 million, well ahead of the Street consensus of $575.1 million, with pro forma profits of $2.02 a share, crushing the Street at $1.75. Gross travel bookings in the quarter 2343 $2.38 billion, up 12.8% from a year ago. Pro forma EBITDA was $126.2 million, up 24.6% year over year.

In a statement, the company said that despite the recession, “leiasure travwel demand for the summer peak season has been stronger than expected, driven in part by the availability of compelling discounts.”

For Q3, the company sees gross bookings up 20%-26%, with revenue up 19%-23% - even better than the 17.5% increase in Q2. That implies revenue of $668 million to $691 million, well above the Street consensus at $613.5 million. Priceline sees Q3 pro forma EPS of $2.70 to $2.85 a share, again ahead of the Street, which had been expecting $2.52 a share.

PCLN today is up $16.12, or 12.3%, to $147.44.

Other online travel stocks are up as well, with Expedia (EXPE) up 69 cents, to $23.21, and TravelZoo(TZOO) up $1.10, or 9.3%, to $12.99. But Orbitz (OWW) is off 4 cents, to $4.56.