(Bloomberg) -- Shares of Booking Holdings Inc. fell after the online travel giant gave a forecast for second-quarter profit that fell short of some analysts' estimates.
Earnings per share will be $16.35 to $17, the Norwalk, Connecticut-based company said in a statement Tuesday. Analysts had estimated $16.81, on average. The outlook overshadowed earnings from the first quarter, which beat projections. The stock fell more than 6 percent in extended trading in New York.
Booking, which changed its name from Priceline Group earlier this year, has been working to increase visibility of its flagship Booking.com website in the U.S., a market traditionally dominated by rival Expedia Group Inc. The company has shifted marketing spending to TV ads from online, a process Booking has warned will take time but will ultimately be positive.
Booking is evaluating its marketing techniques with a stricter set of standards to make them more cost-effective, Chief Executive Officer Glenn Fogel said.
Booking shares are up more than 20 percent so far this year and hit a record in March.
To contact the reporter on this story: Gerrit De Vynck in New York at gdevynck@bloomberg.net.
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Molly Schuetz, Andrew Pollack
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