Priceline released its latest earnings results after closing bell tonight, posting adjusted earnings of $31.18 per share or non-GAAP net income of $1.6 billion on $3.69 billion in revenue. Analysts had been expecting $29.92 per share in earnings and $3.62 billion in revenue.
The online booking platform had guided for adjusted earnings of $28.30 to $29.80 per share at the time of its second quarter earnings release. In last year’s third quarter, Priceline reported adjusted earnings of $25.35 per share and $3.1 billion in revenue.
Priceline’s profits plunge due to impairment
The company’s international operations contributed gross profits of $3.3 billion, marking an increase of 25% over the same quarter a year ago. Priceline’s net income declined 58% year over year to $506 million or $10.13 per share. Bookings rose 22% year over year to $18.5 billion, while adjusted EBITDA rose 19% year over year to $1.9 billion. The booking company said a $941 million goodwill impairment pertaining to OpenTable impacted its results
“The Priceline Group brands executed well during our peak summer travel season,” Priceline Chairman and Interim CEO Jeffery Boyd said in a statement. “Globally, our accommodation business booked 150 million room nights in the 3rd quarter, up 29% over the same period last year. The acceleration in room night growth demonstrates the favorable market in which we operate as well as the value of our diverse global platform.”
Priceline guides for the fourth quarter
Priceline expects its fourth quarter earnings to be between $12.20 and $12.80 per share. The booking company expects room nights booked to grow by 20% to 25% and total gross travel bookings to grow by 16% to 21%. It guided for a 13% to 18% increase in GAAP gross profits and net income of $11.40 to $12 per share. Management also expects non-GAAP earnings of $12.20 to $12.80 per share and adjusted EBITDA of $755 million to $795 million for the fourth quarter.
Shares of Priceline surged in after-hours trade, climbing by as much as 5.04% to $1,555 per share following tonight’s report.
