Shares of Booking Holdings (NASDAQ:BKNG) have dropped today, down by 6% as of 1:08 p.m. EDT, after the company formerly known as Priceline reported second-quarter earnings. Booking's guidance left a bit to be desired.
Revenue in the second quarter came in at $3.54 billion, which translated into non-GAAP net income of $1 billion, or $20.67 per share. Both top- and bottom-line figures were ahead of consensus estimates, which called for $3.44 billion in sales and an adjusted profit of $17.44 per share. Room nights sold jumped 12% to 190.5 million, rental car days sold increased a mere 1% to 20.9 million, and airline tickets sold grew 5% to 1.9 million.
"Booking Holdings achieved strong results for the second quarter," CEO Glenn Fogel said in a statement. "Adjusted EBITDA and non-GAAP EPS were up year-over-year 35% and 36%, respectively." He added: "We will continue to execute on our long-term strategy to drive profitable growth and invest in capabilities to increase customer loyalty and build a larger direct business."
Guidance was what sent investors packing, even though the company has a history of issuing overly conservative guidance only to top its own lowball forecasts. Booking's outlook calls for revenue to grow 6% to 9% in the third quarter, which is expected to result in non-GAAP net income of $1.76 billion to $1.81 billion, or $36.70 to $37.70 per share. Analysts have been modeling for earnings per share of $39.79.