After warnings from Orbitz, Priceline, and now InterActiveCorp, the online travel industry’s troubles are beginning to appear widespread.
InterActiveCorp fell 15% in after hours trading Tuesday after missing revenue estimates and warning, matching Priceline’s 15% decline following its warning Monday night. IACI blamed competition and slowing bookings in its hotel business. Orbitz also blamed growing competition, and Priceline highlighted rising investment and advertising costs in its outlook.
IACI reported second quarter earnings of 22 cents a share, a penny ahead of estimates, but revenues of $1.5 billion missed analysts’ consensus forecast of $1.58 billion. The company said it expects full year operating income before amortization of $1 billion, at the low end of the company’s previous $1-1.2 billion guidance.
Also after the close, ValueClickand Cienawarned.
Stocks tumbled during the day on news that consumer spending slumped in June, the latest evidence of an economic slowdown, and oil prices hit a new high.
The Nasdaq fell 32 to 1859, the S&P 500 lost 6 to 1099, and the Dow fell 58 to 10,120. Volume rose to 1.34 billion shares on the NYSE, but declined to 1.51 billion on the Nasdaq. Decliners led 18-14 on the NYSE, and 20-10 on the Nasdaq. Downside volume was 66% on the NYSE, and 85% on the Nasdaq. New highs-new lows were 89-42 on the NYSE, and 38-100 on the Nasdaq.
Adobewas a bright spot, gaining 3% after raising guidance because of strong product demand.
Macrovision, Emerson Electricand Mercurygained on its results. BEAwas unchanged on its earnings report.
Qwest, NetEase, Sonic, Avanex, Drexler, Perot Systemsand Vishayfell on their results.