Travelzoo (NASDAQ:TZOO) Posts Earnings Results, Misses Expectations By $0.35 EPS

Key Points

• Travelzoo reported a quarterly loss of $0.21 per share, missing analysts’ $0.14 EPS estimate by $0.35 and declining from $0.12 EPS in the year-earlier period. Net margin was 4.32%, while return on equity remained negative at 101.85%.
• Shares fell 30% to $7.14 following the results, with trading volume exceeding its average. Travelzoo has a $73.45 million market capitalization and a 52-week trading range of $4.72 to $12.39.
• Despite the earnings miss, analysts maintain a consensus “Moderate Buy” rating with an average price target of $15.67; institutional investors own 27.39% of the company.

Travelzoo (NASDAQ:TZOO - Get Free Report) announced its quarterly earnings results on Tuesday. The information services provider reported ($0.21) earnings per share for the quarter, missing the consensus estimate of $0.14 by ($0.35), RTT News reports. Travelzoo had a net margin of 4.32% and a negative return on equity of 101.85%. During the same period in the previous year, the firm earned $0.12 EPS.

Travelzoo Trading Down 30.0%

Shares of TZOO traded down $3.06 during mid-day trading on Tuesday, hitting $7.14. 241,863 shares of the company's stock were exchanged, compared to its average volume of 182,864. The business's 50 day moving average is $10.63 and its two-hundred day moving average is $8.08. The firm has a market capitalization of $73.45 million, a P/E ratio of 20.13 and a beta of 1.28. Travelzoo has a fifty-two week low of $4.72 and a fifty-two week high of $12.39.

Hedge Funds Weigh In On Travelzoo

A number of large investors have recently bought and sold shares of TZOO. Quarry LP acquired a new stake in shares of Travelzoo in the 3rd quarter worth $26,000. Bank of America Corp DE raised its holdings in Travelzoo by 1,242.5% during the second quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider's stock worth $27,000 after purchasing an additional 1,988 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in Travelzoo by 42,900.0% during the second quarter. JPMorgan Chase & Co. now owns 3,010 shares of the information services provider's stock worth $38,000 after purchasing an additional 3,003 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in Travelzoo in the second quarter valued at about $44,000. Finally, Wells Fargo & Company MN lifted its position in Travelzoo by 76.2% in the fourth quarter. Wells Fargo & Company MN now owns 6,787 shares of the information services provider's stock valued at $48,000 after purchasing an additional 2,935 shares during the period. Hedge funds and other institutional investors own 27.39% of the company's stock.

Wall Street Analysts Forecast Growth

TZOO has been the subject of several research reports. Zacks Research upgraded Travelzoo from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 23rd. Ascendiant Capital Markets lifted their price target on shares of Travelzoo from $22.00 to $23.00 and gave the company a "buy" rating in a research report on Friday, May 22nd. Barrington Research raised their price target on Travelzoo from $8.00 to $12.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. UBS Group set a $12.00 price objective on Travelzoo in a report on Friday, April 24th. Finally, Wall Street Zen upgraded Travelzoo from a "hold" rating to a "buy" rating in a report on Sunday, July 12th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $15.67.

Travelzoo Company Profile

Travelzoo NASDAQ: TZOO is a global internet media company specializing in publishing curated travel, entertainment and local deals to a subscriber base of millions. Through its website, mobile applications and weekly email newsletters, Travelzoo partners with airlines, hotels, cruise lines, tour operators and local merchants to promote time-sensitive offers at discounted rates. The company generates revenue primarily from media commissions, advertising arrangements and marketing services provided to its hotel and resort partners.

Founded in 1998, Travelzoo went public on the NASDAQ in 2003 under the ticker symbol TZOO.

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