Priceline Issues Light Guidance; Shares Tumble Along with Other Travel Names

Priceline GroupPCLN

reported its third quarter results before market open on Tuesday. The company earned $22.16 per share, $1.05 more than analysts expected while revenue of $2.84 billion was in-line with expectations. Bookings in the third quarter slowed to 28 percent growth after growing 34 percent in the second quarter. U.S. bookings growth also slowed to 9.9 percent growth from 20.6 percent last quarter. Priceline issued soft fourth quarter guidance. The company now expects its gross travel bookings to rise by eight percent to 15 percent. The company expects its non-GAAP earnings per share to be $9.40 to $10.10, falling short of the consensus estimate of $10.91. Priceline's Chief Executive Officer Darren Huston

noted that the company is operating in a “mixed macro-economic backdrop, particularly in Europe.” Shares of Priceline, an industry leader within the online travel space, were trading lower by more than eight percent Tuesday morning. Accordingly, shares of other online travel related companies were trading lower. Shares of Expedia EXPE were trading lower by more than three percent Tuesday morning. Shares of TripAdvisor TRIP were trading lower by around one percent Tuesday morning. The company will report its third quarter report due after market close on Tuesday. Shares of Orbitz Worldwide OWW were trading lower by more than two percent Tuesday morning.

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