Travelzoo Warning Brings 52-Week Low Challenge
Travelzoo Inc. (NASDAQ: TZOO) is having one nasty day. The online travel booking site warned that third-quarter revenue was now falling and it expects a worse-than-expected earnings report as well. An admission from management that hotel offerings were not up…
The company is now targeting $35.0 million to $35.5 million in revenue and sees earnings coming in a range of $0.20 to $0.22 per share. Thomson Reuters had the consensus estimates of $0.27 in earnings per share and its consensus on revenue was about $38.9 million.
In an order to help things get back on track, Travelzoo says that it is in talks to acquire a hotel bookings website. We will have to wait for the size details later. The new market value of Travelzoo is about $375 million.
Travelzoo is trading down at $20.28 after a 13.7% drop, and the lowest point so far on Friday was $19.33. This is important because Travelzoo’s prior 52-week trading range was $19.38 to $34.95.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
