Priceline Group Reported Q1 Earnings, Shares plummet

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The Priceline Group Inc. (NASDAQ: PCLN) reported its financial results for the first quarter of 2017 after the market close Tuesday, with revenue missing estimates. Shares of Priceline were down 3% after the announcement. 

According to the company, revenue for the first quarter rose 13% from $2.15 billion to $2.42 billion, missing the analysts’ estimates of $2.45 billion. Earnings increased from $374.4 million, or $7.54 a share in the same period last year to $455.6 million, or $9.11 a share in the first quarter. The results beat estimates of $8.82 per share.

“The Priceline Group is off to a strong start in 2017 with solid growth in room nights and rental car days booked,” Glenn Fogel, the Chief Executive Officer of the Priceline Group, said in the statement.

“Globally, our brands booked over 173 million room nights during the quarter, up 27% over the same period last year. Booking.com continues to extend its accommodations network, with over 1.2 million properties on its platform, including hotels, homes and apartments, up 36% over last year. Our rental car business grew rental car days by 15% over the 1st quarter of last year, an acceleration from 14% in the 4th quarter,” he added.

For the second quarter, the company expected that adjusted earnings per share to be between $13.30 to $14.00 per share, which is lower than the estimate of $15 per share.

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