Priceline’s Stock Slides Despite More Than Doubling Profits in Q3
Online travel company Priceline easily beat analyst expectations in the third quarter, but the results did not impress shareholders.
In normal trading, the stock fell $4.37 a share, and continued sliding after hours, falling another $8.87 to $500.13 a share.
UPDATE: Shareholders reversed their opinions later in the session, pushing the stock up $8.25, or 1.6 percent, to $509.00.
During the quarter, revenues grew 45 percent to $1.4 billion and net income doubled to $469.5 million, or $9.17 a share, compared to the year-ago period.
Analysts were expecting the company’s non-GAAP results to total $9.30 a share, according to First Call. On a non-GAAP basis, the company reported a profit of $9.95 a share to easily beat that.
However, the company said it expected some softness in the fourth quarter, especially given the economic uncertainty in Greece and other European states, and less travel demand for Thailand due to widespread flooding.
In the fourth quarter, it forecasts year-over-year revenue increases of 27 to 32 percent, and non-GAAP net income of between $4.90 and $5 a share.