Priceline's 2Q rises, but shares fall after hours

Shares plunged $22.20, or 18.9 percent, to $95, in aftermarket electronic trading, after gaining $5.48, or 4.9 percent, to close at $117.20 in the regular session. The stock has traded between $59.50 and $144.34 during the past 52 weeks.

Earnings for the three months ended June 30 rose to $54.1 million, or $1.08 per share, from $34.6 million, or 79 cents per share, in the year-ago period. Excluding special items, earnings totaled $78.5 million, or $1.55 per share.

Revenue grew 44 percent to $514 million, from $355.9 million last year.

Analysts surveyed by Thomson Financial, who generally exclude special items, forecast earnings of $1.41 on revenue of $495.7 million.

Although the overall results topped forecasts, Goldman Sachs analyst Jennifer Watson said investors may initially focus on the weaker-than-expected international bookings, particularly because that segment "has been the primary topline and profit growth driver."

Quarterly gross travel bookings gained 71 percent, but international bookings grew at the low end of Priceline's 80 percent to 90 percent guidance range. Meanwhile, the company's domestic business slightly beat the high end of expectations.

Gross travel bookings refers to the total dollar value of all travel services purchased by consumers.

In a conference call with investors, Priceline's management attributed the soft international performance in part to the earlier Easter holiday, which fell in the first quarter this year.

Priceline also said hotel room night unit sales may have been "artificially depressed" in June as a result of the EURO cup soccer tournament. The company said weakening economic conditions may also be a factor.