Online travel company Priceline Group (PCLN) reported third-quarter earnings after the market close Monday that beat on the top and bottom lines.
Priceline reported earnings per share minus items of $31.89, beating the consensus estimate of $29.92, up 23% year over year. Revenue rose 19% to $3.69 billion, beating the consensus of $3.6 billion, as polled by Thomson Reuters.
Priceline stock was up 4.7% in after-hours trading, following its earnings release. Shares rose 3.9% in Monday’s regular session to 1480.33. Shares peaked Oct. 5 at 1501.79.
The company said Q3 was “negatively impacted by a non-cash charge of $941 million relating to an impairment of OpenTable’s goodwill.”
It said the impairment charge is a result of a change in business strategy as it relates to OpenTable’s international expansion and other growth opportunities. The change in strategy resulted in OpenTable updating its forecasted financial results to reflect a material reduction in forecasted long-term financial results from these initiatives.
“While OpenTable will continue to pursue these growth opportunities, they will do so on a more measured and deliberate basis,” Priceline said.
Priceline Group is the leading online travel company by revenue, followed by Expedia (EXPE). Priceline generates about 80% of its gross bookings from its international business, primarily from Booking.com, whereas Expedia is more focused on North America.
Online travel company TripAdvisor (TRIP) reports Q3 earnings after the market close Tuesday, following cautious warnings on its Q2 call, and EPS is expected to fall for a third straight quarter.
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