(PCLN) – Some Quick Pre-Earnings Notes

November 7, 2011 3:59 pm

Priceline (PCLN) is scheduled to report after the bell today. The consensus is estimating that they will earn $9.29 on $1.4 billion of revenue.

Next quarter is a different story as that is one of the weakest quarters that they usually report – next to Q1.

Watch for a price move if they beat by more that $1.00. The average historical surprise has been +14.33%. This company needs to beat by some margin to move it much higher as it is now hitting up against its longer term downtrend.

Important levels to watch:

If the company misses, the $478.50 level is in play as this will bring it down to where it was just before the per-earnings run-up occurred. There is good support at that level.

On the upside, there is a good amount of resistance at $532/$539.

Earnings have been a time that the stock has been hitting its high over the past few quarters and then rolling over right after earnings….

(We have a small short position into the release)

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