Priceline.com shares tumble on 3Q outlook

AP News
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Posted: Aug 07, 2012 5:32 PM

Norwalk, Conn. (AP) — Shares of Priceline.com are falling in after-hours trading after the discount travel website offered a disappointing outlook for third-quarter earnings.

The company predicted Tuesday that third-quarter earnings, excluding special items, would be between $11.10 and $12.10 per share, below analysts' expectation of $12.82 per share.

In the second quarter, the company rode a wave of strong bookings for international travel. Revenue from those rose 40 percent. Hotel bookings soared 39 percent and the car-rental business grew 29 percent over the same quarter last year.

Net income was $352.3 million, or $6.88 per share, compared with $256.4 million, or $5.02 per share, a year earlier. The company said that excluding stock-based compensation expenses and other items, it would have earned $7.85 per share.

Analysts expected $7.36 per share, according to FactSet.