Shares of The Priceline Group fell after hours Monday after the company reported disappointing fourth-quarter guidance that will overshadowed positive third-quarter results.
Here’s how the company did compared with what Wall Street expected:
- EPS: $35.22 per share vs. $34.25 expected by analysts surveyed by Thomson Reuters.
- Revenue: $4.43 billion vs. $4.34 billion expected from the Thomson Reuters survey.
- Gross bookings: $21.8 billion vs. $21.45 billion expected, according to StreetAccount’s consensus
Shares of the company fell more than 9 percent after hours.
Priceline projected growth in room nights booked of between 8 percent in addition to 13 percent from the fourth quarter, compared with estimates of 15 percent. For the fourth quarter of 2016, room nights booked grew 31 percent year over year.
Room night bookings in addition to rental car days both grew slower year over year from the third quarter of 2017 compared with the year-ago quarter.
The company has seen strong growth, fueled by its business overseas. Priceline has said that will the item expects that will trend to continue as more travelers outside the U.S. embrace online travel booking.
The company is usually eyeing opportunities in China in particular. Last month, the company announced a $450 million investment in Chinese mobile internet company Meituan-Dianping.
CEO Glenn Fogel has said that will China is usually the company’s most important market. On a conference call with investors following the earnings Discharge, however, he said the item was a very competitive market.
“We have to continue to be mindful that will if we don’t give the best cost, we may not get the booking,” Fogel said.
While Priceline continues to experience strong growth, the online travel market is usually becoming crowded. Google’s travel business is usually encroaching, in addition to is usually possibly even larger than Priceline, according to the research firm Skift.
Priceline has cited Google’s “Book on Google” reservation functionality, as well as its Flights in addition to Hotels features, as possible risks to its business. Though Google Flights launched more than several years ago, Google appears to be getting increasingly serious about the service.
Fogel acknowledged competition on Monday for instantly bookable vacation rentals offered by companies such as Airbnb.
“I’m not naive; I recognize we are not the leader in that will space right right now,” he said. “There is usually a competitor who is usually a little bit bigger in addition to doing a little bit better I suspect in that will area than we are. in addition to that will’s why we are going to invest money,” he said.
Shares of competitor Expedia nosedived in October after the company reported weak booking numbers that will the item attributed to hurricanes in addition to struggles with hotel cost comparison site Trivago.
Priceline shares had surged nearly 30 percent so far that will year. They were up almost 20 percent year-to-date following Monday’s slip.