Tags: Priceline | earnings | revenue | travel

Priceline Fourth-Quarter Revenue Forecast Misses Estimates

Tuesday, 04 Nov 2014 12:53 PM

Priceline Group Inc. forecast fourth-quarter sales that missed analysts’ estimates, a sign customers are curbing travel plans while a rising U.S. dollar erodes the value of foreign revenue at the online travel company.

Sales will rise by 11 percent to 18 percent, the Norwalk, Connecticut-based company said today. That compares with analysts’ average estimate of a gain of 24 percent. Third- quarter revenue climbed 25 percent, topping analysts’ average projection according to data compiled by Bloomberg.

Bookings, or the total value of services purchased by Priceline customers, will probably increase by 8 percent to 15 percent in the fourth quarter, slowing from a 28 percent increase in the third quarter, the company said. Priceline, which gets the bulk of its revenue from international travelers, also cited the strength of the U.S. currency.

“Going into the fourth quarter, we try to be more prudent because most of our money is in overseas,” Chief Executive Officer Darren Huston said in an interview. “The effect of exchange rates and macroeconomical headwinds is something that we can’t control.”

Priceline shares fell 9.4 percent to $1,086.33 at 12:54 p.m. in New York. They had gained 3.1 percent this year through yesterday.

Priceline has been spurring global growth by pushing into new regions and markets, helped by the acquisition of a minority stake in Ctrip.com International Ltd., China’s largest travel website, and the purchase of restaurant-reservation service OpenTable Inc.

Third-quarter revenue climbed 25 percent to $2.84 billion, beating the analysts’ average estimate of $2.83 billion.

International bookings climbed 32 percent to $12.1 billion, the company said. Growth for the current period will slow to as little as 10 percent, or 16 percent excluding currency fluctuations.

Earnings excluding certain items was $22.16 a share, topping analysts’ average estimate of $21.07.

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Priceline Group Inc. forecast fourth-quarter sales that missed analysts' estimates, a sign customers are curbing travel plans while a rising U.S. dollar erodes the value of foreign revenue at the online travel company.
Priceline, earnings, revenue, travel
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2014-53-04
Tuesday, 04 Nov 2014 12:53 PM
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