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.


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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work