Priceline shares tanked by 8 percent Wednesday after the company reported a bookings miss for its second quarter and weak guidance for the current quarter.
Gross bookings hit $20.8 billion for the second quarter, up 16 percent year over year. However, that was slightly below Wall Street’s consensus estimate of $21.05 billion, according to FactSet. The bookings growth was driven by growth in hotel room nights and in rental car days, offsetting a smaller decline in air tickets.
The provider of travel-related discounts delivered better-than-expected earnings and revenue for the second quarter in its Tuesday evening report, but the bookings miss overshadowed those results. Expectations were high going into the report, as Priceline shares hit a record during trading Tuesday.
A Jefferies analyst said this bookings miss was a “fluke” and not a sign of fundamental problems, and that any pullback in the stock should be seen as a buying opportunity.
Priceline’s weak third-quarter guidance also was a cause for concern. The company’s EPS outlook of $32.40 to $34.10 on EBITDA of $2.03 billion to $2.13 billion is below FactSet’s consensus estimates of $34.21 EPS on $2.14 billion in EBITDA.
The shares are still up more than 28 percent for 2017.