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Orbitz Worldwide Misses Where it Counts

By Seth Jayson – Updated Apr 10, 2017 at 2:27PM

Just the facts, Fool.

Orbitz Worldwide (NYSE: OWW) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Orbitz Worldwide beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP loss per share grew.

Gross margins dropped, operating margins increased, net margins dropped.

Revenue details
 Orbitz Worldwide reported revenue of $189.7 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $185.0 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $177.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$2.96. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS were -$2.96 for Q4 compared to -$0.44 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 79.9%, 230 basis points worse than the prior-year quarter. Operating margin was 8.2%, 250 basis points better than the prior-year quarter. Net margin was -165.8%, 13,950 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $199.3 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $809.6 million. The average EPS estimate is $0.24.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 97 members out of 137 rating the stock outperform, and 40 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Orbitz Worldwide a green thumbs-up, and 14 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 $2.91.

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About the Author

Seth Jayson
Seth Jayson (TMFBent) began his Foolish career as a writer before recommending stocks in special products and then taking on the co-advisor role at our small-cap service, Hidden Gems, where he became the longest-serving HG advisor. After that, Seth specialized in beating the market with lesser-known, smaller companies at Market Pass before transitioning into the lead advisor role for Artificial Intelligence and Trend-Spotter. His work at TMF has also included some time building databases and "robots" that wrote thousands of articles on their own, along with other robots that uploaded these articles into our publishing system. Although these were too simple to qualify as AI (except maybe by 1950s terms), he likes to think that keeping a toe in the nitty-gritty of the tech gives him some valuable perspective that can help inform investing decisions. Originally from the frozen Iron Range of northern Minnesota, Seth graduated from Carleton College and holds master's degrees from NYU and the University of Missouri. When he's not riding bikes or hiking with the family, he's probably out running, or making carbon fiber bikes in the garage.
TMFRizzChicken

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 position in any of the stocks mentioned. 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.

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