Travelzoo Earnings: Here’s Why the Stock is Flying High 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 14.94%.

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Travelzoo Inc. Earnings Cheat Sheet

Results: Net income decreased -40.9% to $3.8 million (24 cents per diluted share) in the quarter versus a net gain of $6.43 million in the year-earlier quarter.

Revenue: Rose 5.23% to $37 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Travelzoo Inc. reported adjusted net income of 24 cents per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $35.49 million.

Quoting Management: “During the fourth quarter of 2012 we continued to execute our strategy of increasing Travelzoo’s reach, expanding our sales force and developing our products, particularly in the mobile and hotel categories,” said Chris Loughlin, chief executive officer. “We are pleased with our progress: The Travelzoo® brand now reaches 26 million subscribers, Getaway sales accelerated, and in Europe our Travel business grew 23% year-over-year. We continue to see strong adoption of the Travelzoo brand on mobile; 33% of users now access our brand through mobile devices.”

Key Stats:

Revenue increased 4.37% from $35.45 million in the previous quarter. Net income increased 10.79% from $3.43 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.34 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.46 to a profit of $1.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)