(PCLN) Continues to Awe and Impress

One of my worst blunders of 2010 was selling (PCLN) in the low $200s after booking a very nice gain. In the 15 or so months since, it has rallied another 150%ish. As Homer S would say “DOH!”. I would think at some point the expectations would be too high for this company to continue to beat, but that day has yet to come. The company just reported a $2.66 v $2.45 expectation on a 38.5% year over year revenue growth rate. International sales, which are now almost half of the business, were blockbuster! (+80%) Maybe next quarter’s $4.40 estimate will be the one to trip up the name, but it’s been a steamroller for a long time now.

Via earnings report:

  • The Group had revenues in the 1st quarter of $809.3 million, a 38.5% increase over a year ago. The Group’s international operations contributed revenues in the 1st quarter of $389.1 million, an 80% increase versus a year ago (approximately 79% on a local currency basis).
  • The Group’s gross profit for the 1st quarter was $505.8 million, a 58.5% increase from the prior year. International operations contributed gross profit in the 1st quarter of $388.2 million, an 81% increase versus a year ago (approximately 79% growth on a local currency basis).
  • Non-GAAP net income in the 1st quarter was $137.0 million, a 57.1% increase versus the prior year.  Non-GAAP net income was $2.66 per diluted share, compared to $1.70 per diluted share a year ago. First Call analyst consensus for the 1st quarter 2011 was $2.44 per diluted share.

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About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

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