The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Orbitz Worldwide met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins increased, net margins grew.
Orbitz Worldwide recorded revenue of $198.3 million. The nine analysts polled by S&P Capital IQ predicted net sales of $200.9 million on the same basis. GAAP reported sales were 2.3% lower than the prior-year quarter's $202.9 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 $0.14. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS of $0.14 for Q3 were 27% higher than the prior-year quarter's $0.11 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 80.7%, 150 basis points worse than the prior-year quarter. Operating margin was 13.3%, 200 basis points better than the prior-year quarter. Net margin was 7.5%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $191.1 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $782.9 million. The average EPS estimate is $0.17.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 99 members out of 141 rating the stock outperform, and 42 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Orbitz Worldwide a green thumbs-up, and 13 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 $3.69.
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