The Priceline Group Inc. shares fell more than 10% on Tuesday after the company reported third quarter financial results. While the company exceeded expectations for the quarter, fourth quarter guidance came in well below expectations. Management expects earnings per share of $13.40 to $14.00 per share during the fourth quarter, which is lower than the consensus estimate of $15.56 per share, while revenue is expected to be $870 million to $910 million, versus a consensus of $1 billion.
Third quarter revenue jumped 20.1% to $4.43 billion – beating consensus estimates by $90 million – while net income of $35.22 beat consensus estimates by 97 cents per share. Gross travel bookings also increased by 18%, which was higher than the 11% to 16% that analysts were expecting. Room nights jumped 18.6%; car rental days rose 5.5%; and airline tickets fell 11.8% – largely positive results for the quarter. (See also: How Priceline Group Makes Money.)
Priceline shares moved sharply lower follow worse-than-expected fourth quarter guidance. …read more
Read more here: Priceline Stock Breaks Down From Head and Shoulders