Priceline sees shares slide despite profit increase

Priceline sees shares slide despite profit increase

Shares in online travel agent Priceline have fallen after it warned a slowdown in the European market could hit growth in the near future.

Prices were down by approximately 15 per cent in after hours trading, despite the online agent exceeding quarterly profit expectations.

Second quarter net income at the travel agent was $352.3 million, or $6.88 a share.

This is compared with $256.4 million, or $5.02 a share, for the same period a year earlier.

Adjusted for items, profit was $7.85 a share in the second quarter, compared with $7.36 expected by analysts.

Quarterly revenue rose 20 per cent to $1.3 billion.

The company - which competes with Expedia and Orbitz Worldwide - said it expects profit, excluding the impact of items, of $11.10 to $12.10 a share for the current quarter.

Shares fell to about $580 in trade after the bell from their Nasdaq close of $679.80 yesterday.