Priceline Group Inc. (NASDAQ: PCLN) posted second quarter profits that beat estimates, driven by strong hotel booking.
The online travel services company said that net income was $580.64 million, or $11.60 per share, compared to $517 million, or $9.94 a share earned in the year-ago quarter. On an adjusted basis, earnings were $13.93, up from $12.45 a year earlier. The result topped Wall Street estimates of $12.69, according to Thomson Reuters.
Second quarter revenue rose 12 percent to $2.56 billion, topping analysts' average estimates of $2.58 billion. For the 2016 third quarter, Priceline expects earnings per share to be between $28.30 to $29.80 per share. Analysts were expecting third-quarter earnings of $28.99 per share for the period.
"The Priceline Group executed another strong quarter as we witnessed a solid start to the summer travel season,” said CEO Jeff Boyd in a statement. “We believe this consistent growth demonstrates the strength of our brands, the value of a diversified global footprint and solid execution by our brand management teams.”
Shares rose 5% to $1,423.70 in the early trading.
The Norwalk, Connecticut-based company said hotel bookings rose 24.4% in the second quarter, while car rental bookings rose 7.6%.