Priceline Swoons Despite Strong Q2; Is Growth Slowing?
Priceline (PCLN) shares are down sharply in late trading, despite a strong Q2 financial report.
For the quarter, Priceline posted revenue of $514 million and non-GAAP profits of $1.55 a share, nicely ahead of the Street at $495.7 million and $1.41.Gross travel bookings grew 71 percent, with 80.1 percent growth internationally, and 59.2 percent growth domestically.
For Q3, the company sees gross travel bookings dropping to 44 to 54 percent, with international growing 58 to 68 percent. Priceline sees revenue in the quarter growing 30 to 35 percent year-over-year, which implies $541.96 million to $562.8 million, compared to Street estimates of $550.8 million. The company sees pro forma profits of $2 to $2.15 a share, versus the Street consensus of $2.05.