The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Orbitz Worldwide beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP loss per share contracted.
Margins improved across the board.
Orbitz Worldwide logged revenue of $177.1 million. The 10 analysts polled by S&P Capital IQ wanted to see a top line of $174.6 million on the same basis. GAAP reported sales were 2.9% lower than the prior-year quarter's $182.4 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 -$0.44. The nine earnings estimates compiled by S&P Capital IQ forecast $0.01 per share. GAAP EPS were -$0.44 for Q4 versus -$0.76 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 82.2%, 370 basis points better than the prior-year quarter. Operating margin was 7.1%, 160 basis points better than the prior-year quarter. Net margin was -26.3%, 1,650 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $190.8 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $799.5 million. The average EPS estimate is $0.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 102 members out of 145 rating the stock outperform, and 43 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Orbitz Worldwide a green thumbs-up, and 11 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 $3.09.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.