Priceline Outlook Disappoints
Priceline.com, the online travel agency, posted a higher quarterly profit on Tuesday, but revenue missed and the company warned on third-quarter earnings.
The company said it expects a profit excluding items of $11.10 to $12.10 a share for the current quarter. That's below the $12.76 expected by analysts, according to Thomson Reuters.
Priceline.com also said third-quarter gross travel bookings should increase about 10 to 18 percent, down from an increase of nearly 27 percent in the second quarter.
Priceline shares tumbled in after-hours trading. (Get after-hour quotes for Priceline here.)
The company, known for its name-your-own-price auction, said second-quarter net income came to $352.3 million, or $6.88 a share, compared with $256.4 million, or $5.02 a share, a year earlier.
Excluding items, earnings were $7.85 a share versus $5.49 a share a year ago.
Revenue rose to $1.3 billion from $1.1 billion a year ago but fell short of expectations.
Analysts had expected earnings of $7.36 a share on revenue of $1.35 billion, according to Thomson Reuters.