The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Travelzoo beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Travelzoo reported revenue of $37.0 million. The two analysts polled by S&P Capital IQ predicted revenue of $35.5 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $35.2 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 $0.24. The two earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.24 for Q4 were 40% lower than the prior-year quarter's $0.40 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 89.0%, 50 basis points worse than the prior-year quarter. Operating margin was 11.8%, 1,150 basis points worse than the prior-year quarter. Net margin was 10.1%, 820 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $41.0 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $159.3 million. The average EPS estimate is $1.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 415 members out of 597 rating the stock outperform, and 182 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Travelzoo a green thumbs-up, and 70 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 $19.50.
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