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.
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. The Motley Fool has no positions in the stocks mentioned above. 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.
More from The Motley Fool
Investing in the Online Travel Industry: Does Your Portfolio Need a Getaway?
Motley Fool analysts Vincent Shen and Sean O’Reilly dive into the online travel industry and discuss recent developments within the space.
Why Expedia Inc Stock Skyrocketed Today
Is Expedia's pop meaningful? Or just another movement?
Why Orbitz Worldwide Inc. Stock Flew Today
Is Orbitz Worldwide's pop meaningful or just another movement?