Priceline Shares Plunge 6% On Second-quarter Results

By Max A. Cherney Markets MarketWatch Pulse

Priceline Group Inc. shares hit a record intraday high Tuesday, but plunged 6.3% in after-hours trading on the online travel company's second-quarter results. The company logged adjusted net income of $758 million, or earnings per share of $15.14. Analysts had modeled adjusted earnings per share of $14.20, according to FactSet. Bookings fell just short of analyst expectations, with Priceline reporting $20.8 billion, when analysts estimated $21.05 billion. Year-over-year sales rose 21% to $3 billion. Executives issued third quarter adjusted earnings guidance of $31.70 per share to $33.40 per share. Analysts modeled EPS of $34.21, according to FactSet. Priceline also estimated gross travel bookings would rise between 11% and 16% compared with the year-earlier quarter. Priceline shares have gained 39.8% year to date and hit an intraday high of $2063.70 on Tuesday. The S&P 500 has gained 10.5%.

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