Priceline Group Inc (NASDAQ:PCLN): cautious guidance for the second quarter, shares slump
Priceline Group Inc(NASDAQ:PCLN) reported better than expected results for the first quarter, but the report has been overshadowed by cautious guidance for the second quarter.
The travel booking site delivered earnings of $10.54 per share on a 17.6% increase in revenue to $2.15 billion.
Priceline’s gross travel bookings, net of cancellations, increased 21.0% year-over-year to $16.70 billion. Similarly, gross profit also increased 21.0%, climbing to $2.00 billion. International operations totaled $1.70 billion, which made up the bulk of the total gross profit.
Non-GAAP net income totaled $532 million in the first quarter, which was a 24.0% increase year-over-year. On a GAAP basis, net income increased 12.3% to $374 million.
Priceline’s management was upbeat about the first quarter, but the guidance that was issued for the second quarter was well below market expectations. The company sees second-quarter earnings between $11.60 and $12.50 per share. Revenue growth is expected to be between 7.0% and 14.0% with room nights booked increasing between 15.0% and 22.0%.
The cautious guidance has led to pre-market selling that has sent the stock lower by 7.7% to levels not seen since late February.
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