Promising Outlook at Priceline

The online-travel company's shares jump 9% in after-hours trading.
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Priceline.com

(PCLN)

offered an optimistic forecast for the rest of the fiscal year and posted second-quarter results that easily exceeded analysts' targets.

Shares of Priceline jumped $2.34, or 8.9%, to $28.75 in extended trading on INET, and it was the volume leader among stocks.

The Norwalk, Conn., online-travel outfit said revenue in the quarter totaled $307.7 million, up 15.4% from last year and ahead of the Thomson Financial consensus estimate of $294.2 million.

Priceline earned $12.5 million, or 28 cents a share, little changed from $12.4 million and 29 cents a share a year ago. Before items, the company would have earned 55 cents in the latest quarter, 4 cents better than Wall Street expected.

For the third quarter, Priceline is projecting a profit of 60 cents to 65 cents a share, and for the year, the company says it should earn $1.66 to $1.74 a share. Both estimates exclude items. On average, analysts want to see 61 cents for the quarter and $1.67 for the year.