Travelzoo Earnings: Here’s Why Investors are Happy Now

Travelzoo Inc. (NASDAQ:TZOO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 15.88%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Travelzoo Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.29% to $0.36 in the quarter versus EPS of $0.42 in the year-earlier quarter.

Revenue: Rose 7.3% to $42.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Travelzoo Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.34. It beat the average revenue estimate of $41.23 million.

Quoting Management: We kicked off 2013 with record revenues, driven by strong performance within our travel segments in both North America and Europe, said Chris Loughlin, chief executive officer. We accelerated subscriber growth and made significant improvements in audience engagement across email, social media and mobile apps. We continued to develop our new hotel booking platform, which we plan to roll out later this year.

Key Stats (on next page)…

Revenue increased 13.96% from $37.03 million in the previous quarter. EPS increased 50% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.31. For the current year, the average estimate has moved down from a profit of $1.23 to a profit of $1.17 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)