News Column

Orbitz's Profit Falls Short

November 5, 2013

Associated Press

NEW YORK (AP) Shares of Orbitz tumbled 16 percent Tuesday after the online travel company's third-quarter profit fell short of expectations and it lowered its full-year revenue forecast ahead of the busy travel season.

THE SPARK: Orbitz earned $13 million, or 11 cents per share, for the three months ended Sept. 30. That's down from $14.8 million, or 14 cents per share, a year ago.

Revenue climbed 11 percent to $220.9 million from $198.3 million.

Analysts, on average, expected earnings of 13 cents per share on revenue of $220.3 million, according to a FactSet survey.

Gross bookings rose 5 percent on higher hotel and vacation package volumes, increased airfares and higher average booking values per hotel and vacation package transaction.

Total expenses increased to $193.5 million from $173.4 million.

The Chicago company now foresees full-year revenue of about $840 million. Previously, it expected revenue of $840 million to $850 million.

Wall Street is looking for 2013 revenue of $848.9 million.

SHARE ACTION: Shares of Orbitz Worldwide Inc. dropped $1.52 to $8.06 in morning trading.

Original headline: Orbitz falls as 3Q profit misses Street's view


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Source: Copyright 2013 The Associated Press. All rights reserved.


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