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Travelzoo Beats Up on Analysts Yet Again

Friday - 7/19/2013, 2:00am  ET

Travelzoo reported earnings on July 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Travelzoo met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Travelzoo tallied revenue of $41.3 million. The two analysts polled by S&P Capital IQ looked for sales of $41.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The two earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.34 for Q2 were 24% lower than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.3%, 150 basis points worse than the prior-year quarter. Operating margin was 18.9%, 740 basis points worse than the prior-year quarter. Net margin was 12.6%, 580 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $38.7 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $160.7 million. The average EPS estimate is $1.17.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 400 members out of 581 rating the stock outperform, and 181 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Travelzoo a green thumbs-up, and 57 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelzoo is hold, with an average price target of $28.00.

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This article was originally published as Travelzoo Beats Up on Analysts Yet Againon Fool.com

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