Booking Holdings Inc. saw its shares drop 7% this week after it forecast its third-quarter earnings would be significantly below analysts’ average estimates.
The online travel giant behind Booking.com said profit excluding some costs in the current period would be between $36.70 and $37.70, less than Wall Street’s estimate for $39.80.
The third quarter includes most of the US school holidays and summer travel season.
Booking Holdings Inc.’s second quarter profit, announced this week, were adjusted to $20.67 a share from $17.37.
Total revenues for the second quarter were $3.5 billion and net income was $977.4 million, a 36% increase on 2017.
“Booking Holdings achieved strong results for the second quarter,” said chief executive Glenn Fogel.
“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.”
The amount of Booking Holding’s budget spent on TV and other brand advertising fell in the second quarter when compared to last year.