NEW YORK (AP) – Shares of The Priceline Group Inc. fell Wednesday after a
weaker-than-expected outlook tempered strong first-quarter profit and revenue
The stock fell almost 11 percent in midday trading Wednesday.
The report comes a week after CEO Darren Huston resigned following an
investigation into a personal relationship with an employee.
Profit rose 12.3 percent to $374.4 million, or $7.47 per share. Earnings,
adjusted for one-time gains and costs, were $10.54 per share, which surpassed
Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks
Investment Research was for earnings of $9.70 per share.
The online booking service’s revenue rose 16.7 percent to $2.15 billion in the
period, also exceeding Street forecasts. Eight analysts surveyed by Zacks
expected $2.12 billion.
The revenue boost was buoyed by 20.9 percent growth in bookings during the
But the Norwalk, Connecticut-based company gave a disappointing second-quarter
outlook. It expects per-share earnings to range from $11.60 to $12.50. Analysts
surveyed by Zacks had forecast adjusted earnings per share of $15.08.
Its shares dropped $146.14, or 10.8 percent, to $1,208.60 on midday trading.
Priceline shares have increased slightly more than 6 percent since the
beginning of the year, while the Standard & Poor’s 500 index has risen 1
percent. The stock has risen roughly 7 percent in the last 12 months.
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