Shares of travel deals site Priceline.com (PCLN) are down $4, or 0.8%, at $505 in late trading after the company handily beat Q3 estimates but forecast the current quarter’s revenue and earnings per share below analysts’ expectations thanks to economic uncertainty.
Revenue in the three months ended in September rose 45%, year over year, to $1.452 billion, on gross travel bookings of $6.3 billion, up 56.2%. The company turned in EPS of $9.95, excluding some costs.
Analysts on average were expecting $1.42 billion and $9.30 per share.
For Q4, the company sees revenue increasing in a range of 27% to 32%. Based on the year-ago Q4′s $731.3 million, that would amount to $928.75 million to $965.3 million. That is below the $994.6 million the Street has been modeling. The company sees Q4 EPS of $4.90 to $5, excluding some costs, which is below the $5.13 per share the Street has been modeling.
Priceline said the outlook reflects European economic uncertainty, and could further be affected by flooding in Thailand:
The Company noted that its guidance is based on current operating trends and that growing economic uncertainty, including concerns relating to potential sovereign defaults by Greece and other European states, may subject operating results to greater variability in the future. The Company also noted that its guidance did not assume further deterioration in travel demand for destinations in Thailand, one of its key markets in Asia, which might accompany a worsening in the widespread flooding occurring throughout the country and threatening Bangkok.
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