Priceline.com ( PCLN) said last month it would move
to lower its share count , and Monday the company followed through, declaring a 1-for-6 reverse stock split and saying it expects to top Wall Street's earnings estimates for the second quarter. As a result of the reverse stock split, each priceline stockholder will receive one new share for every six shares they currently hold. The company's presplit guidance was for second-quarter earnings of 2 cents to 3 cents a share. After the split, that translates to earnings of 12 cents to 18 cents a share, and priceline said it remains comfortable with estimates in that range. Analysts polled by Thomson First Call were expecting earnings of about 10 cents a share, the company said. The reverse stock split will reduce the number of shares Priceline has outstanding to about 37.5 million from around 227 million. The company believes "that this reverse stock split enhances our position by expanding investor interest, reducing transaction costs for trading our stock, making our results more comparable to peer companies with far fewer outstanding shares, and allowing priceline.com's earnings per share on a post-split basis to more precisely reflect the company's operating results." Norwalk, Conn.-based priceline has a travel service that offers airline tickets, hotel rooms and other products, and a personal finance division that provides home mortgages, refinancing and home equity loans.