Book an appointment with Boardroom Media using SetMore
Connect with us

THE PRICELINE GROUP INC - Profit Forecast Misses Estimates


Bloomberg says: Growth is getting harder to come by in online travel.

Priceline Group Inc. said profit, except certain items, would be from $13.40 a share to $14 a share in the current quarter, missing the average analyst estimate of $15.56. Shares fell as much as 9 percent in extended trading.

The company said its costs are rising as it spends more on customer service, seeking to capture a larger share of the fast-growing, short-term home-rental market and push back competition from Airbnb Inc. and Expedia Inc.’s HomeAway. Home-rental properties have fewer rooms per property and require more work on Priceline’s behalf to handle bookings and customer service, leading to higher costs, Chief Executive Officer Glenn Fogel said on a conference call.

“This type of product has a higher level of customer contact due to its unique nature,” Fogel said.


CNBC said: Shares of The Priceline Group fell after hours Monday after the company reported disappointing fourth-quarter guidance that overshadowed positive third-quarter results.

Here's how the company did compared with what Wall Street expected:

EPS: $35.22 per share vs. $34.25 expected by analysts surveyed by Thomson Reuters.
Revenue: $4.43 billion vs. $4.34 billion expected in the Thomson Reuters survey.
Gross bookings: $21.8 billion vs. $21.45 billion expected, according to StreetAccount's consensus

Earning call

Other events for Priceline