Priceline Shares Plunge on Weak Guidance
Shares of Priceline.com (NASDAQ: PCLN) are plunging by almost 12 percent in Tuesday's after-hours session after the company said it expects to earn $11.10-$12.10 per share in the current quarter, well below the $12.79 analysts are expecting.
In the second quarter, Priceline said it earned $7.85 a share on revenue of $1.33 billion. Analysts expected a profit of $7.37 a share on revenue of $1.35 billion.
"The Priceline Group achieved solid results for the 2nd quarter despite economic uncertainty across Europe, Asia and the U.S. that intensified as the quarter progressed," said Jeffery H. Boyd, Priceline's President and CEO.
"We believe the Group delivered market leading growth from both a top line and profitability perspective. Globally, our hotel business booked over 50 million hotel room nights, up 39% over the same period last year. Our global rental car business grew rental car days by 29% over last year, led by continued strong growth for rentalcars.com."
The company said it expects third-quarter revenue growth of nine percent to 15 percent and a gross profit increase of 15 percent to 25 percent.
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