NEW YORK - Shares of The Priceline Group Inc. (PCLN) slumped Tuesday after the online travel booking service's fourth-quarter outlook fell short of Wall Street estimates.
The operator of Priceline, Kayak and other services said economic uncertainty, especially in Europe, is weighing on its outlook. In addition, the strengthening dollar can result in overseas sales translating back to fewer dollars in revenue.
The Norwalk, Connecticut, company said it expects adjusted earnings of $9.40 to $1.10 per share in the fourth quarter. It is forecasting revenue growth of 11 to 18 percent from last year, which suggests a total of up to $1.82 billion. Analysts had expected earnings of $10.97 per share and $1.91 billion in revenue, according to FactSet.
Priceline shares fell $103.48, or 8.6 percent, to $1,095.04 in mid-afternoon trading.
The company reported net income of $1.06 billion, or $20.03 per share, in the third quarter. Excluding one-time items, Priceline said it earned $22.16 per share. Its revenue totaled $2.84 billion.
Zacks Investment Research says analysts expected net income of $21.08 per share and $2.82 billion in revenue.
Priceline shares have risen 3 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 9 percent. The stock has risen 14 percent in the last 12 months.