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UPDATE: Priceline Shares Drop On Weak Profit Forecast

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Shares of The Priceline Group (NASDAQ: PCLN) 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.

 

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