The 10-second takeaway
For the quarter ended June 30 (Q2), Orbitz Worldwide missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted significantly.
Gross margins were steady, operating margins dropped, and net margins dropped.
Orbitz Worldwide logged revenue of $201.0 million. The seven analysts polled by S&P Capital IQ predicted net sales of $208.1 million on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $201.8 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 $0.04. The six earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.04 for Q2 were 50% lower than the prior-year quarter's $0.08 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 82.4%, about the same as the prior-year quarter. Operating margin was 7.4%, 240 basis points worse than the prior-year quarter. Net margin was 2.3%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $216.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $807.9 million. The average EPS estimate is $0.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 101 members out of 144 rating the stock outperform, and 43 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Orbitz Worldwide a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Orbitz Worldwide is hold, with an average price target of $4.23.
If you're invested in retailers like Orbitz Worldwide, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Orbitz Worldwide to My Watchlist.