Travelzoo (Nasdaq: TZOO) is expected to report Q3 earnings on Oct. 25. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Travelzoo's revenues will contract -8.6% and EPS will compress -38.9%.

The average estimate for revenue is $35.3 million. On the bottom line, the average EPS estimate is $0.22.

Revenue details
 Last quarter, Travelzoo recorded revenue of $39.4 million. 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 details
 Last quarter, EPS came in at $0.45. 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.

Recent performance
 For the preceding quarter, gross margin was 90.8%, 140 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.

Looking ahead

The full year's average estimate for revenue is $150.1 million. The average EPS estimate is $1.35.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 438 members out of 621 rating the stock outperform, and 183 members rating it underperform. Among 163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give Travelzoo a green thumbs-up, and 74 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelzoo is hold, with an average price target of $29.00.

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