Orbitz Profit Tops Views on International Strength
By Kyle Peterson, Reuters | Aug. 09, 2011
Online travel agency Orbitz Worldwide Inc's quarterly net profit fell much less steeply than analysts expected, helped by strength in its international business.
The company said on Tuesday that the total value of its bookings slipped 3 percent to US$3 billion, led by a fall of about 9 percent in domestic business. The value of international bookings, which account for more than a quarter of the total, gained 39 percent.
That component of the business is growing significantly faster than the domestic business, Chief Executive Officer Barney Harford told Reuters. We would expect it to increase in terms of its percentage of the business.
Second-quarter earnings fell to US$8.9 million, or 8 cents per share, from US$9.7 million, or 9 cents per share, a year earlier.
Wall Street analysts had expected to company to earn 1 cent per share, according to Thomson Reuters I/B/E/S.
Revenue rose 4 percent to US$201 million, beating forecasts of US$199 million.
The company said it expected 2011 revenue of US$752 million to US$762 million, which is below the analysts' average forecast of US$778.2 million.
Shares of Orbitz were up 0.9 percent at US$2.35 on the New York Stock Exchange after jumping nearly 4 percent when the market opened.