Orbitz Worldwide Misses Where it Counts

Just the facts, Fool.

Seth Jayson
Seth Jayson
Feb 14, 2013 at 12:00AM
Other

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.


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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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