Priceline.com Inc. (NASDAQ:PCLN) reported higher earnings and revenue for the second quarter, but the provider of online travel services guided third-quarter below market expectations and its shares tumbled 13.18 percent in extended trading on Tuesday.
The Norwalk, Connecticut-based company said macro-economic conditions and a strong dollar has put pressure on top-line growth rates.
On an non-GAAP basis, earnings per share (EPS) increased 43 percent to $7.85 from $5.49 in the year-ago quarter, and topped Wall Street projections of $7.37. GAAP earnings applicable to common shareholders grew 37.5 percent to $352.3 million.
Revenue rose 20.3 percent to $1.3 billion, yet falling short of consensus estimate of 22.80 percent growth.
Second quarter gross travel bookings were $7.3 billion, up 26.8 percent over the year-ago period.
Looking ahead for the third quarter, Priceline.com guided non-GAAP EPS in the range of $11.10 to $12.10, on revenue growth of 9 percent to 15 percent. Analysts expect EPS of $12.82 on revenue growth of 24 percent.
PCLN ended Tuesday's regular trading session at $679.80. The stock has been trading in the 52-week range of $411.26 to $774.96.