copied from heyrob69 post
for those with short term memories or those who don't do research, here is what happen the last two quarters. In past two quarters, Priceline had issued Q2 and Q3, 2012 guidance below analysts' estimates. PCLN announced that for Q2, 2012, it expects year-over-year revenue growth by approximately 18-23% and GAAP EPS to be $6.34-6.54, which was below analysts' expectation of $6.68, as reported by Reuters on May 9, 2012. For Q3 guidance, as reported by Reuter on Aug. 7, 2012, PCLN expects year-over-year revenue growth by approximately 9-15% and non-GAAP fully diluted EPS to be about $11.10-12.10, which was again below analysts' expectation of $12.48. So, what happened after these announcements? Prior May 9's Q2 guidance, PCLN closed at $718.95 on May 9, 2012. Then, it continued to drop until $632, with 12.09% drop as compared to May 9 closing, on May 18, 2012 before it rebounded. For Q3 guidance, PCLN dropped from $679.80, the closing price on Aug. 7, to $562.32, with 17.28% drop, on Aug. 8 before it stabilized and started to recover. With the upcoming Q3 earnings and Q4 guidance, PCLN investors do need to worry if PCLN misses the guidance estimate again.