Priceline.com Posts Profit, Issues Warning
Priceline.com Inc., an Internet seller of discount travel services, reported third-quarter net income of $8.5 million as hotel and rental-car bookings helped sales increase for the first time in seven quarters.
However, Priceline’s stock fell after the company predicted fourth-quarter earnings of 2 cents to 8 cents a share, trailing analysts’ average estimate of 11 cents a share as reported by Thomson First Call.
Priceline’s third-quarter net income of 21 cents a share compared with a year-earlier net loss of $24.3 million, or 64 cents. The Norwalk, Conn.-based company’s revenue rose 1.4% to $243.4 million.
Shares of Priceline rose 56 cents to $29.25 in regular Nasdaq trading before the earnings were released. They tumbled $6.25, or 21%, to $23 in after-hours trading.