Priceline’s Guidance Implies Near-Term Headwinds

Online travel firm Priceline (click ticker for report: ) reported strong second quarter earnings Tuesday afternoon. Revenue grew 20% year-over-year to $1.3 billion, which was in-line with consensus estimates. Non-GAAP net income per share grew a whopping 43% to $7.85, which was substantially higher than the Street’s estimate of $7.39. However, Priceline’s third quarter guidance implies substantial quarter-over-quarter deterioration. Total bookings are expected to grow 10%-18% (19%-27% on a constant currency basis) on just 5% domestic booking growth. This compares to a 26.8% growth rate for gross bookings during the second quarter and implies significant headwinds abroad. Non-GAAP net income per share is expected to be $11.10 to $12.10 per share—still above its $9.95 in earnings during the third quarter of 2011 but … Read more