Travelzoo (Nasdaq: TZOO ) reported earnings on July 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Travelzoo missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins improved, and net margins grew.
Travelzoo logged revenue of $39.4 million. The two analysts polled by S&P Capital IQ foresaw revenue of $40.3 million on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $37.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.45. The three earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share. GAAP EPS of $0.45 for Q2 were 50% higher than the prior-year quarter's $0.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 90.8%, 250 basis points worse than the prior-year quarter. Operating margin was 26.3%, 600 basis points better than the prior-year quarter. Net margin was 18.4%, 530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $39.9 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $157.7 million. The average EPS estimate is $1.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 448 members out of 627 rating the stock outperform, and 179 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Travelzoo a green thumbs-up, and 68 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelzoo is outperform, with an average price target of $29.00.
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