Priceline Plunges on Weak Outlook

NEW YORK (TheStreet) -- Shares of Priceline.com (PCLN) tanked in late trades Tuesday after the online travel reservation company gave a soft outlook, thanks in part to anticipated weakness in Europe.

The Norwalk, Conn.-based company reported non-GAAP earnings of $405 million, or $7.85 a share, on revenue of $1.33 billion for the June-ended period. That performance compared to a year-ago equivalent profit of $282.6 million, or $5.49 a share, on revenue of $1.1 billion.

The average estimate of analysts polled by Thomson Reuters was for earnings of $7.36 a share in the latest quarter on revenue of $1.35 billion.

Priceline CEO Jeffrey Boyd said the company was dealing with tough economic conditions in Europe, Asia and United States, particularly as the quarter went on.

"The Priceline Group achieved solid results for the 2nd quarter despite economic uncertainty across Europe, Asia and the U.S. that intensified as the quarter progressed," Boyd said a statement. "We believe the Group delivered market leading growth from both a top line and profitability perspective. Globally, our hotel business booked over 50 million hotel room nights, up 39% over the same period last year. Our global rental car business grew rental car days by 29% over last year, led by continued strong growth for rentalcars.com."

Third-quarter guidance was extremely weak with the company citing "the uncertainty surrounding worldwide economic conditions, particularly in Europe where much of the Company's business is concentrated" in the commentary.

Priceline said it expects earnings of $11.10 to $12.10 a share for the September-ending quarter with revenue seen increasing by 9%-to-15% year-over-year, implying a range of $1.6 billion and $1.67 billion. That view is well below Wall Street's current consensus estimate for earnings of $12.76 a share in the third quarter on revenue of $1.795 billion.

Shares of Priceline closed Tuesday's regular session at $679.80, up 2.2%. The stock was last quoted at $571, down 16%, or $108.80, on volume of 1.38 million, according to Nasdaq.com.

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--Written by Chris Ciaccia in New York

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