The 10-second takeaway
For the quarter ended March 31 (Q1), Orbitz Worldwide met expectations on revenues and exceeded expectations on earnings per share.
Compared with the prior-year quarter, revenue increased slightly and GAAP loss per share shrank.
Margins expanded across the board.
Orbitz Worldwide chalked up revenue of $189.8 million. The nine analysts polled by S&P Capital IQ expected revenue of $190.8 million on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $184.9 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 -$0.06. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.08 per share. GAAP EPS were -$0.06 for Q1 against -$0.11 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 81.0%, 60 basis points better than the prior-year quarter. Operating margin was 2.1%, 240 basis points better than the prior-year quarter. Net margin was -3.4%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $208.9 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $806.8 million. The average EPS estimate is $0.23.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 100 members out of 145 rating the stock outperform, and 45 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 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 $3.61.
While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business and reaping outsized rewards. Is Orbitz Worldwide the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Get instant access to this free report.
- Add Orbitz Worldwide to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.