Priceline, TripAdvisor Surge on Q3 Earnings Surprise
In after-hours trading today, shares of Priceline and TripAdvisor soared after the two online travel companies exceeded expectations for the third quarter.
In Q3, Priceline’s profits totaled $596.6 million, or $11.66 a share, on revenue of $1.71 billion. Analysts were expecting $1.66 billion in revenue. And earnings per share, excluding certain items, totaled $12.40, which easily beat estimates of $11.82.
The Norwalk, Conn.-based online travel agency said the positive results were attributable to an increase in gross travel bookings across its various sites, including Booking.com in Europe and Agoda.com in Asia.
Online review site TripAdvisor also beat analyst expectations. The company said profits jumped 9 percent to $59.4 million, or 41 cents per share, in the third quarter compared to $54.3 million in the same period a year earlier. Additionally, it said revenue increased 18 percent to $212.7 million. Analysts were expecting the company to earn 42 cents a share on revenue of $210.9 million. The revenue result was boosted by gains from advertising and subscriptions.