Priceline.com income falls, but tops estimates

NORWALK, Conn.

Online travel retailer Priceline.com Inc. said Thursday its third-quarter earnings fell 16 percent from a year-ago period helped by a hefty tax gain, but results still beat Wall Street expectations.

However, the company issued a fourth-quarter profit forecast below analysts’ estimates, citing the weak economy’s effect on international travel.

President and Chief Executive Jeffery H. Boyd said bargain-hunting shoppers boosted bookings in the quarter, but international business slowed in late September and October. He blamed global economic weakness, the falling value of the euro and lower hotel rates.

Net income fell to $88 million, or $1.81 per share, from $104.4 million, or $2.27 per share, a year ago, which included a non-cash tax benefit of $47.9 million. Excluding one-time costs, it would have earned $2.39 per share in the quarter ended Sept. 30.

Revenue rose nearly 35 percent to $561.6 million from $417.3 million, as international sales rose 70 percent.

The results easily beat estimates of analysts surveyed by Thomson Reuters, who expected profit of $2.10 per share on revenue of $546.6 million.

Priceline shares fell $5.53, or 10.5 percent, to close the regular session $47.07 ahead of the report. In aftermarket electronic trading, they rose $3.53, or 7.5 percent, to $50.60.

Priceline said the gross value of all travel services it booked in the third quarter, including taxes and fees, rose 47 percent to $2 billion.

Looking ahead, Priceline.com forecast adjusted profit of $1 to $1.10 per share in the fourth quarter — below analysts’ average forecast of $1.16 per share.

Source : businessweek.com

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