UPDATE: Priceline Shares Drop On Weak Profit Forecast

Shares of The Priceline Group

dropped more than 2% in pre-market trading after the company reported better-than-expected quarterly profit, but issued a weak forecast for the third quarter. The Norwalk, Connecticut-based company posted a quarterly profit of $576.5 million, or $10.89 per share, versus a year-ago profit of $437.3 million, or $8.39 per share. Excluding non-recurring items, Priceline's adjusted profit rose to $12.51 per share from $9.70 per share. Its total sales rose to $2.12 billion versus $1.68 billion. However, analysts were expecting a profit of $12.06 per share on revenue of $2.14 billion. For the current quarter, Priceline expects adjusted earnings of $19.60 to $21.10 per share, versus analysts' estimates of $21.28 per share. Priceline's gross profit surged 36% to $1.9 billion in the quarter. Adjusted EBITDA climbed 30% y/y to $809 million in the quarter. Gross travel bookings of all travel services purchased by its customers climbed 34% y/y to $13.5 billion. “The Priceline Group achieved strong results for the 2nd quarter as the summer travel season got off to a solid start for our brands,” said Darren Huston, President and CEO of the Priceline Group. Priceline shares dipped 2.23% to $1,252.99 in pre-market trading.