Travelzoo Can't Find Enough Bargains

Things must be so good in the economy that online travel discounters can’t find bargains.  Travelzoo (TZOO-NASDAQ) just dropped the ball in its earnings numbers.  They posted revenues of $19.7 million and posted $0.25 EPS; estimates were for revenues $20.4 million and $0.32 EPS; its tax rate also grew from 44% to 48%.  For an old hi-flyer, this one is going to be a disappointment.  Shares are halted in after-hours trading.

They gave no guidance and no revenue shortfall explanations either, other than this:  “In Q1, we decided to invest a record $6.7 million in subscriber acquisition and in marketing the Travelzoo brand. We added four senior executives in North America, Europe, and Asia. We believe that this positions Travelzoo well to capture the growth opportunities we see ahead for the future.”

This isn’t exactly the most pro-shareholder report they could have made.  Shares of Expedia (EXPE-NASDAQ) and (CTRP-NASDAQ) have not seen any related weakness.  TZOO shares traded down 1.25% to $36.88 in regular trading, but shares look down some 15% to under $31.00 in after-hours trading.  Its 52-week trading range is $25.34 to $52.99.

Jon C. Ogg
April 24, 2007

Jon Ogg can be reached at; he does not own securities of the companies he covers.

Sponsored: Find a Qualified Financial Advisor:

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.