Priceline Posts Upbeat Q3 Earnings, But Issues Weak Outlook

reported better-than-expected earnings for the third quarter, but the company issued a weak earnings forecast for the current quarter. The Norwalk, Connecticut-based company reported quarterly net income of $1.2 billion, or $23.41 per share, compared to $1.06 billion, or $20.03 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings surged to $25.35 per share from $22.16 per share. Its revenue increased 9.4 percent to $3.10 billion. However, analysts were projecting earnings of $24.23 per share on revenue of $3.05 billion. The average estimate among 200 Estimize users was for earnings of $24.50 per share and revenue of $3.08 billion. Gross travel bookings rose 7 percent year-over-year to $14.8 billion in the quarter. Gross profit climbed 12 percent to $2.9 billion. Adjusted EBITDA jumped 12 percent year-over-year to $1.6 billion. "The Priceline Group delivered strong growth and operating results during its high travel season," said Darren Huston, President and CEO of The Priceline Group. Priceline expects Q4 adjusted earnings of $11.10 to $11.90 per share, versus analysts' estimates of $12.42 per share. The company also projects gross travel bookings to increase 1 percent to 8 percent. Priceline shares dipped 5.65 percent to $1,368.00 in pre-market trading.