Travelzoo (Nasdaq: TZOO) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Travelzoo missed on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share expanded significantly.

Gross margins contracted, operating margins shrank, and net margins grew.

Revenue details
Travelzoo tallied revenue of $35.2 million. The five analysts polled by S&P Capital IQ expected sales of $38.5 million. Sales were 23% higher than the prior-year quarter's $28.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.40. The five earnings estimates compiled by S&P Capital IQ averaged $0.35 per share. GAAP EPS of $0.40 for Q4 were 75% higher than the prior-year quarter's $0.23 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.5%, 260 basis points worse than the prior-year quarter. Operating margin was 23.3%, 30 basis points worse than the prior-year quarter. Net margin was 18.3%, 500 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $44.2 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $177.2 million. The average EPS estimate is $1.67.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 471 members out of 660 rating the stock outperform, and 189 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 133 give Travelzoo a green thumbs-up, and 69 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelzoo is buy, with an average price target of $39.80.

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