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Priceline Shares Rise On Strong Hotel Bookings

November 7, 2016 Changes Name To The Priceline Changes Name To The Priceline Group
Priceline's home pagePhotograph by Bloomberg via Getty Images

Travel website operator Priceline Inc reported a 19% jump in quarterly revenue, driven by a 29.4% surge in hotel bookings.

Shares (PCLN) of the company, whose brands include and Kayak, rose 5.5% to $1,562 in after-hours trading on Monday.

Priceline, the world’s largest online travel agency by market value, said total gross bookings soared 24.9% to $18.46 billion ahead of the holiday season.

Rival Expedia said last month that October bookings looked “healthy.”

Norwalk, Connecticut-based Priceline said it expected an adjusted profit of $12.20-$12.80 per share for the current quarter.

Priceline’s net income fell to $506.0 million, or $10.13 per share, in the third quarter, from $1.20 billion, or $23.41 per share, a year earlier.

The company said it incurred a non-cash charge of $941 million relating to an impairment of OpenTable’s goodwill.

Excluding items, the company earned $31.18 per share.

Revenue rose to $3.69 billion from $3.10 billion.

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Priceline said car rental bookings rose 12.5% in the three months ended Sept. 30.

Up to Monday’s close, Priceline’s shares had risen 16.1% this year, outperforming a 4.3% rise for the broader S&P 500 index.