Travel Companies Hit as European Debt Issues Trim Profits (PCLN) (OWW) (EXPE)
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Things its not good to be today: a sarcastic therapist, a frowny face, or an online travel booking company.
Tuesday night, priceline.com (Nasdaq: PCLN) recorded mixed second-quarter 2012 results, but guided third-quarter non-GAAP EPS below views at a range of $11.10 to $12.10.
Mostly, priceline.com attributed weaker results to Europe, with CFO Daniel Finnegan stating: "We believe that weak economic conditions and sovereign debt concerns further contributed to the level of deceleration experience, particularly in our key European markets which represents about 60% of our total booked room nights. We saw a softer demand and ADR trends continue in Southern Europe and spread to certain other markets including the U.K. in the second quarter...We believe that the strong growth rates in markets outside of Europe demonstrates the attractive long-term opportunity that these markets continued to shift the booking online and comprised an increasing share of our business."
In addition, Orbitz Worldwide (NYSE: OWW) missed second-quarter earnings views by one cent per share, with lighter than expected revs. Gross bookings fell one percent, though constant currency bookings rose one percent. Looking ahead, Orbitz saw lower than expected third-quarter sales of $197 million to $203 million.
Shares of priceline.com are down over 15 percent early, while Orbitz is off 15 percent as well and peers Expedia (Nasdaq: EXPE), Tripadvisor (Nasdaq: TRIP), and Travelzoo (Nasdaq: TZOO) are all lower as well.
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Tuesday night, priceline.com (Nasdaq: PCLN) recorded mixed second-quarter 2012 results, but guided third-quarter non-GAAP EPS below views at a range of $11.10 to $12.10.
Mostly, priceline.com attributed weaker results to Europe, with CFO Daniel Finnegan stating: "We believe that weak economic conditions and sovereign debt concerns further contributed to the level of deceleration experience, particularly in our key European markets which represents about 60% of our total booked room nights. We saw a softer demand and ADR trends continue in Southern Europe and spread to certain other markets including the U.K. in the second quarter...We believe that the strong growth rates in markets outside of Europe demonstrates the attractive long-term opportunity that these markets continued to shift the booking online and comprised an increasing share of our business."
In addition, Orbitz Worldwide (NYSE: OWW) missed second-quarter earnings views by one cent per share, with lighter than expected revs. Gross bookings fell one percent, though constant currency bookings rose one percent. Looking ahead, Orbitz saw lower than expected third-quarter sales of $197 million to $203 million.
Shares of priceline.com are down over 15 percent early, while Orbitz is off 15 percent as well and peers Expedia (Nasdaq: EXPE), Tripadvisor (Nasdaq: TRIP), and Travelzoo (Nasdaq: TZOO) are all lower as well.
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